Who knows what Hybrid Term life insurance is? Raise your hand if you know the answer. Many people have never heard of Hybrid life insurance plan designs. To give you a quick description of these new life insurance plans, just image a life insurance policy that covers you when you are alive or deceased.
You are probably aware of the benefits to a conventional low cost Term life insurance policy which needless to say has one main job and that is to pay out after your demise. This is the one aspect that most people know and understand. This thought does not motivate the average person to run out call his insurance agent to purchase life insurance. The new Hybrid plans offer a ton of value for the average consumer and excellent benefits when you are also alive.
What does the word Hybrid actually mean? This is a good question.
As an example, most people have driven their car down the highway and noticed signs in a cornfield that indicate the product in this field was grown with “Hybrid” corn seed. A hybrid product of any kind usually refers to describing a blend of two or more products into one which gives it additional benefits and performance. With life insurance plan designs either Term or Universal life insurance, you can now have a policy with multiple benefits. Here is a basic list of some of the main benefits that can be incorporated into a conventional Term product.
• Accelerated Death Benefits
• Chronic Illness Benefits
• Critical Illness Benefits
• Long term Care
Are these new Hybrid Term life insurance plan designs worth the extra premium? I think so; these plans offer so much more value for your premium dollar.
Let’s take a look at the premiums of a conventional Transamerica Term policy vs. a modern Hybrid version. We will use a 30 year old male non-smoker 20 year Term with a $250,000 face amount with the same carrier to avoid premiums being varied from one company to another.
*Trendsetter Super Term – $197.50
*Trendsetter LB – $212.50
Look at the same scenario but with a $500,000 face amount.
*Trendsetter Super Term – $325.00
*Trendsetter LB – $355.00
The two life insurance quotes show a minimal increase in premium which make them a great new choice when shopping for affordable life insurance.
Let’s take a look at how these excellent new benefits would be triggered to pay out.
A good example of a Critical Illness event would be a heart attack, stroke, Cancer, Renal Failure, Organ Transplant, ALS, Blindness and Paralysis. Depending on what state you live in, you could be eligible for a payout of 75%-90% depending on the severity of your illness. Conventional Term life insurance would have no benefits for these critical illnesses.
Chronic Illnesses benefits would work the same way for illnesses you have been diagnosed with and will be dealing with for years to come such as Emphysema, Diabetes, and Rheumatoid Arthritis.
I personally witnessed a case of a female in her 30s being diagnosed with Cancer requiring surgery. She had a Trendsetter LB policy with a face amount of $500,000 and received a benefit of $375,000. That check in the mail could help take the sting out of being sick and pay for a lot of lost income due to not being able to work for a several months while recovering. She recovered from the Cancer and is now in excellent health.
If you are looking for Term life insurance without the extra resources of the “living benefits”, a conventional term policy will still be a great choice for you. Everyone is different in what kinds of products they like or dislike. If you are interested in purchasing life insurance and you need quotes and information on plan designs, spend a few minutes to look at these new plan designs. You are welcome to use our consumer quoting engine where we will show you Term and Universal life insurance quotes from over 40 highly rated carriers.
Permanent plan designs such as Universal life can also be purchased with Hybrid benefit options.
Universal life insurance is a permanent form of life insurance and can be purchased with Long Term Care insurance which is very practical. Many people do not purchase Long Term Care Insurance because they don’t want to spend substantial premiums every month with the thought if they don’t use the coverage the premiums they paid all these years will just be pure profit for the insurance companies. In many cases this is exactly what happens. Universal life insurance can also be purchased incorporating an Annuity for a savings option.
If you would like more information on these new plan designs, give us a call 7 days a week or contact us by email. Our services have no obligation or cost. Before you purchase a new low cost life insurance plan, you owe it to yourself to check these value packed life insurance plans. Thank you for reading our blog post Hybrid Life Insurance is just what the doctor ordered.
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