Are hybrid long-term care policies really premium proof?

10/17/2013 | Nerd's Eye View blog

Financial blogger Michael Kitces addresses whether the premium guarantee for hybrid long-term care policies, which combine a life insurance or annuity policy with long-term care coverage, are all they're advertised to be. He writes that while the insurers do guarantee against a premium increase, there are other measures the insurers can take, such as underpaying on interest rates, to offset the cost. Kitces lays out the structure of hybrid LTC policies and discusses circumstances where they may be appropriate despite concerns about how they'll perform in a rising-rate environment.

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