Originally Posted by tgotch
I was watching the Belmont Stakes race yesterday (of course my horse did not win), and saw a commercial for Brighthouse SmartCare.
Looks like a hybrid universal life/LTC plan.
Cursory view of their site shows the following (Hybrid vs. Traditional LTC) plan:
No premium increase
Return of premium
I haven't looked into the costs/fees associated.
Anyone with more info on this options?
Over on bogleheads one guy who sells LTC policies notes you pay roughly 3x with these hybrid plans as you would for a stand-alone LTC plan with the same benefits.
BTW, normally the insurance premium increases every year with universal life (like annually renewable term)...the sellers assume that earnings will cover those increases, but in my experience that never happens, so the policy eventually will require new money to stay in effect.
So I'm skeptical of the "no premium increase" claim.
Look at the guarantee on the illustration and make sure the above doesn't happen with this policy...I've had two universal life policies "blow up" because of the above...I didn't buy the policies but got stuck paying for them.