As to the hybrids "costing three times" what LTC alone would cost, I question the comparison, as such comparisons are often made by those who sell the LTC stand-alone policies.
I was aware of the extra underwriting costs tacked into having both a life product as well as an LTC product combined, but three big deciders that convinced me to go for the State Life hybrid product:
1) "One" policy would cover either of us and/or both of us. Very efficient cost-wise to find what we considered adequate likely needed LTC coverage for either or both of us.
2) And the clincher--If we "never" needed to use the LTC, all the premiums paid would not have been wasted, so to speak. Rather our kids would still get almost double our upfront premium back as life insurance benefit.
3) "Never" any annual premium increases! Guaranteed in the contract. Once we bought, we were locked in, whether we paid all upfront, or spread over years.
I could not find "any" stand alone LTC policies that provided the efficiency of covering "both" spouses in one policy. The costs of two policies of stand-alone LTC's never could measure up in my book to what we got in this hybrid "both spouses under one policy" solution. With the frosting, if never needed, the kids get nearly double the cost back as life insurance proceeds.
And they also offered an inflation rider at reasonable annual cost, with added benefit it could be dropped at any point if premiums became burdensome, but benefit level attained to that point are retained.
There was a lot of flexibility in "designing" our package to get what we thought as likely adequate needed coverage for the "pair" of us, inflation coverage, and ways of paying--either all upfront, part upfront, with riders on annual, or all upfront for riders and LTC on annual, or everything on annual premiums.
From time to time of course I have revisited our decision, and looked at current offerings of stand alone LTC's. I always run into the same obstacles with the stand-alone policies---probable annual unpredictable premium increases at some point. Inefficient pricing to get "both" spouses covered. And if never used, all the LTC premiums were "wasted".
I always have decided, again, we made the right choice, and have been extremely happy, and filled with peace of mind. And I know if I go like my wife did (die quickly at home happy in my own bed), our kids will get nearly double our upfront cost back as life insurance proceeds--so the hybrid was an efficient estate planning and asset transferring tool to boot. No premiums wasted.
