Hybrid insurance combines long term care insurance with either life insurance or annuities. In the event that an individual does not use long-term care services, their beneficiaries will receive a death benefit or payment.
Furthermore, hybrid insurance policies often offer a surrender value - which is a cash payment that is paid to the policy owner if the choose to cancel the policy. Typically, these policies are single payment premiums or flexible payment premiums for a certain number of years.
What many people like about hybrid policies vs. traditional ones is the policy does three things instead of one, it provides a Life Insurance Policy, Long-Term Care Insurance, and Guaranteed Return of Premiums.
Some hybrid policies also return a percentage of premiums paid if you cancel the policy before the end of the surrender charge period.