Before you go shopping for a long-term care plan, you need to consider the difference between a hybrid plan and a traditional plan. There are advantages and disadvantages between both types of plans.

The general idea of the plans is the same – they allow for an individual or couple to save for their future care-related needs, but the methods in which they provide such savings are quite different. We explore the differences below.

What is a traditional long-term care plan?

1. A traditional plan pays for the long-term care you require.
2. You will pay premiums that are subject to increases.
3. You will be able to take advantage of the benefits for five years.
4. A traditional plan is also eligible for Medicaid Asset Protection which is determined by each state.

What is a hybrid long-term care plan?

1. A hybrid plan has fewer restrictions than a traditional plan.
2. There are no premium increases and there’s a lifetime benefit period.
3. Any unused premiums are transferred to your loved ones via a death benefit.
4. The hybrid plan is not eligible for Medical Asset Protection.
5. There is a higher cost for using this plan.

What else should I know?

Regardless of which plan you choose, starting to pay premiums years before you need them will allow the payouts to compound for longer, giving you more money to use when you need it. You can also make a one-time payment or monthly payment.

Which plan should I choose?

You can’t know what the future will hold, but you can prepare for it. Speak with an agent at Pink Lemonade to learn more about these options to see which plan works for you.