Compare traditional and hybrid LTC proposals.
Compare funding, care benefits and remaining values using the same care assumptions. Confirm each term in the actual proposal and contract.
Updated October 6, 2026 · Aligned Path Insurance Solutions
Set the care assumptions
Use one care plan for both proposals and self-funding. A mix of insurance and household resources can also be recorded here.
Care goal and responsibility
Preferred care setting, who arranges care, and what the plan protects.
Common comparison basis
Use the same state, issue age, coverage basis and future comparison age.
State, issue age, individual or joint coverage, underwriting assumption, and future age or year for comparison. Use ages only, not names or birth dates.
Care-cost assumption
Record local costs, the source date, cost growth and care duration.
Local cost source and date, monthly cost today and at the comparison age, cost growth, duration, and a longer-care scenario.
Self-funding comparator
Compare available income and liquid assets, including premiums retained without insurance.
Income and assets available for care, timing, liquidity, taxes to review, and impact on spouse, spending and legacy goals. Include the premium funds retained if no policy is bought.
Use Proposal A for the traditional policy and Proposal B for the hybrid, or label each structure in the first rows. Write “not offered,” “not applicable” or “confirm” where needed. A blank field is not a zero or a guarantee.
Identify the proposals
Use current illustrations, benefit schedules, outlines of coverage and specimen policy forms. Record page references beside the terms.
Carrier, product and document date
Identify the carrier, product, forms, proposal date and source pages.
Include policy and rider form numbers, proposal date and document page references. No policy numbers or client identifiers.
Coverage structure and quote status
Confirm the coverage structure, underwriting status, tax qualification and any Partnership status.
Traditional LTC or a life-based/annuity-based hybrid with dedicated LTC coverage; proposed underwriting class, tax-qualified status, and Partnership qualification if any. Confirm state-specific terms and what remains subject to underwriting.
Funding and guarantees
Record the full payment schedule. An annual premium and a single payment commit money at different times.
Premium or funding pattern
Compare payment amounts, timing, duration and rider charges.
Amount, frequency, number of payments and final payment year; include rider charges and any extra funding required.
Guaranteed versus changeable premiums
Liquidity and affordability
Record accessible assets and affordability if premiums rise or payments stop.
Source of funds, assets left accessible, capacity for an increase, premium waiver during care and conditions if payments stop.
Guaranteed versus illustrated values
Separate guaranteed values from illustrated values at the same future age.
List guaranteed care, death and cash values separately from non-guaranteed values at the same comparison age. Record illustration assumptions.
Care benefits on the same basis
Keep the payment limit separate from the total pool. Enter carrier-provided figures at the same age; leave unmatched terms visible.
Daily or monthly benefit limit
Compare payment limits today and at the same future age.
Initial amount and amount at the comparison age; note setting-specific caps and whether a daily limit restricts monthly use.
Total care pool and benefit period
Compare the total care pool, benefit period and shared-care terms.
Initial and future pool, benefit-period wording, shared-care rules, and any acceleration and extension-of-benefits amounts. Avoid counting a death benefit twice.
Inflation and benefit growth
Confirm how the payment limit and care pool grow over time.
Rate, simple or compound growth, start/stop age, whether the limit and pool both grow, premium effect, and any purchase-option conditions.
Elimination period and day-counting
Compare waiting periods and how qualifying days are counted.
Number of days; service or calendar days; when counting begins; consecutive/accumulation rules; once or per episode; setting-specific waivers.
Reimbursement, indemnity or cash method
Confirm how benefits are paid and how payments reduce the care pool.
Eligible-expense reimbursement up to limits, or stated benefit; service, receipt and certification requirements. Confirm how each payment reduces the pool.
Covered settings and providers
Compare eligible care settings, providers and exclusions.
Home, adult day care, assisted living, nursing facility, hospice; licensing, informal/family care, exclusions and geographic restrictions.
Benefit triggers and certification
Confirm the exact claim triggers, certification and care-plan requirements.
Exact daily-activity/cognitive language, expected duration, certifier, care-plan and recertification rules, and any additional permanence condition.
What remains, and what needs confirmation
Request illustrations for no care, an earlier claim and a later claim. Use the same care draw for both proposals where possible.
Death, cash and surrender values
Compare death, cash and net surrender values before and after the same care use.
Before care and after the same care use: remaining death benefit, guaranteed minimum if any, cash value, net surrender value, charges and timing. Mark not applicable where appropriate.
How care use changes other values
Record how claims, loans and withdrawals affect other policy values.
Acceleration or reduction method, extension benefits, effects of withdrawals/loans, and any restoration, return-of-premium or nonforfeiture provision.
Amount still funded by the household
Identify care costs the household still pays, including waiting periods and exhausted benefits.
At the comparison age: care cost beyond payment limits, excluded services, waiting-period costs and costs after the pool is exhausted. Use the funding planner for scenarios.
Open questions and accepted tradeoffs
List unconfirmed terms, who will verify them and the household’s accepted tradeoffs.
What is unconfirmed, who will verify it and from which document? Ask about tax qualification, state-specific terms and any replacement losses. Record the tradeoff the household would accept.
Confirm the rider
A chronic-illness accelerated death-benefit rider is a separate life benefit. Record it under “Open questions and accepted tradeoffs”; don’t treat it as equivalent to dedicated LTC coverage.
Ask the carrier about the rider’s tax status, claim calculation, charges, remaining values and claim conditions, including any permanence requirement. The NAIC’s July 2017 overview distinguishes these arrangements.
Keep the decision in context
This reference organizes terms; it does not determine eligibility, claim approval or which policy to buy. Benefits depend on the contract. Review tax, legal and financial questions with the appropriate professionals.
How Aligned Path is paid
We work with advisor referrals and direct clients. If a policy is placed, the carrier pays us a commission; the referring advisor earns no insurance commission. We charge no separate brokerage, shopping, placement or servicing fee on any line. How we get paid.
Related planning resources
- LTC planning guideCare preferences and funding priorities
- Care-cost and funding plannerLocal costs and the household’s share
- Self-fund, insure or hybridThe broader funding tradeoffs
Request LTC proposals or review an existing policy.
Sources and scope
- NAIC shopper’s guide: terms to confirm.
- Texas consumer guide: waiting periods and payment rules.
- IRS reporting instructions: qualified-contract and accelerated-benefit reporting.
Check the applicable contract and state requirements. Sources checked October 5, 2026.