Hybrid Long-Term Care Insurance - RightCapital Help Center

Existing Hybrid Long-Term Care Insurance policies can be added via the Net Worth section of the Profile (or the Net Worth step of the initial data entry process), by selecting Add Account > Insurance > Hybrid Long-Term Care:

Hybrid LTC Data Entry

The Policy name will default to [Client's] LTC Insurance, but you can enter a custom name if you'd like. You will also want to choose the client or co-client as the Owner.
Choose the client or the co-client as the Insured Individual, and specify the Purchase year by entering a calendar year to the right.
Enter the dollar amount for the client's Annual premium, and specify the year in which the Premium ends. If the client is no longer paying a premium, you can leave this set to $0.
Use the Premium Inflation field to specify any annual increase in the premium amount. Specify whether premiums are pre-tax or after-tax using the Premium tax field.
Enter the amount of the Death benefit, and specify any Benefit inflation. You can also choose between compound and simple interest as the Inflation type.
Specify the Acceleration period (death benefit will be split between the number of years indicated if LTC occurs), the Elimination period (the number of days the client must wait after LTC begins before receiving benefits), and the Extension Period (how many years beyond the acceleration period benefits will be paid).
Check the 'Benefit taxable' box if the benefits paid are to be considered taxable income.

Additional Information

Hybrid LTC policies allow for the acceleration of the death benefits to pay for LTC expenses. The death benefit amount will be split between the number of years indicated as the ‘Acceleration period’, and will continue beyond the ‘Acceleration period’ for the duration specified as the ‘Extension period’.

For Example: If the Death Benefit is $200,000, the Acceleration period is 2 years, and the Extension period is 1 year, the policy will pay out $100,000 ($200,000 death benefit / 2 year acceleration period) for up to 3 total years (the 2 year acceleration period plus the 1 year extension period).

Hybrid LTC Insurance policies will automatically kick in within the Cash Flow projections when LTC costs begin for a respective client. The cost and timing of long-term care are both entered into the Profile > Goals > Long-Term Care Costs card.

You can use the dedicated Long-Term Care Insurance Analysis to visualize the impact that a client's Hybrid LTC insurance coverage will have in the final years of their plan. The LTC analysis can be accessed within the Insurance > Long-Term Care module of each plan.

In addition to adding existing Hybrid LTC coverage in the Profile > Net Worth section, Hybrid LTC policies can also be proposed within the Retirement Analysis section. For more information on proposing insurance policies in the Retirement Analysis module, click here.