While the value of hybrid life insurance policies that also provide living benefits may be old news, new developments in the health insurance market mean that many clients may need these policies more than ever today. The rising cost of health care has collided with one increasingly prominent trend: employer-provided health coverage is often being scaled back to satisfy the mandates of the Patient Protection and Affordable Care Act (PPACA) — creating a coverage gap that life insurance can now fill.
Despite this, the today’s new crop of options — from life insurance with built-in chronic care provisions to linked LTC-life insurance benefits — can be difficult for even the most experienced of advisors to navigate. Though the primary goals of these products may be similar, the results can vary dramatically — so that understanding the difference between linked and built-in living benefits can be the key to ensuring that your clients have the tools necessary to fill their coverage gaps.