Everything You Need to Know About Combination Life Insurance

Shawn Plummer

CEO, The Annuity Expert

Life is full of uncertainties, and insurance policies have come to the forefront to make the journey less nerve-wracking. Combination Life Insurance is one policy that has been catching the eye of savvy consumers. This all-encompassing insurance policy could be the key to worry-free financial planning. But what is it exactly, and why might it be worth considering? Let’s delve deep into the world of combination life insurance to find out.

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What is Combination Life Insurance?

Combination Life insurance, as its name suggests, is a policy that combines two or more elements of different insurance types. This typically includes components of life insurance (payable upon death) and long-term care insurance (which covers costs of personal and custodial care in case of a chronic illness or disability). This hybrid approach means it offers coverage that might otherwise be unaffordable if bought separately.

Example: Sarah, a 55-year-old healthy individual, buys a combination life insurance policy. This means she has a life insurance payout that her beneficiaries will receive upon her death, but she also has long-term care coverage if she falls ill or becomes disabled.

Combination Life Insurance

How Does Combination Life Insurance Work?

The function of combination life insurance is simple yet effective. Your premiums go towards building a death benefit and a pool for long-term care expenses. If you need long-term care, the insurance pays out from the pool. If you don’t, the death benefit remains intact for your beneficiaries.

Example: John has a combination life insurance policy with a death benefit of $200,000 and long-term care coverage of $150,000. If John uses $50,000 for long-term care, the death benefit would be reduced to $150,000.

Who Needs Combination Life Insurance?

Combination life insurance is suitable for a wide range of individuals. People primarily concerned about their potential need for long-term care but also want life coverage for their loved ones might find it an excellent choice. It is beautiful to those who want to ensure their premium payments benefit their health or heirs.

Example: Lisa, a single, financially independent woman with no children, buys combination life insurance. She ensures that her hard-earned money goes into her care if she ever needs it, and in case of her untimely demise, her favorite charity will receive the death benefit.

Why Do People Need Combination Life Insurance?

Many people are drawn to combination life insurance for its dual-coverage aspect. It guarantees you’ll use your policy one way or another, whether for long-term care or as a death benefit. It’s also easier to manage with just one premium, policy, and carrier.

Example: Martin, a businessman, opts for combination life insurance. He likes that his insurance investment won’t go to waste whether he needs long-term care.

What Is Combination Life Insurance

The Pros and Cons of Combination Life Insurance

Like everything in life, combination life insurance has pros and cons.


  • Dual coverage: Life and long-term care benefits rolled into one.
  • Money utilization: If you don’t use it for long-term care, it goes to your beneficiaries.
  • Cost efficiency: This can be more affordable than purchasing life and long-term care insurance separately.


  • Less comprehensive: It may not offer as much coverage as separate policies.
  • Cost variability: Premiums can be high depending on your health and age.
  • Reduced death benefit: The death benefit can be significantly reduced if long-term care benefits are used.

Example: Kelly, a 60-year-old, purchases a combination life insurance policy. While she benefits from the dual coverage and potential cost savings, she also acknowledges the downside that her heirs will receive less if she uses some of the insurance for long-term care.

Next Steps

Combination Life Insurance offers an innovative solution to individuals seeking a cost-effective way to secure life insurance and long-term care. However, it’s crucial to understand the combination life insurance pros and cons, how the combination life insurance cost fits into your budget, and use tools like a combination life insurance calculator to ensure the best outcome.

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Frequently Asked Questions

What is hybrid combo life insurance?

Hybrid life insurance policies with long-term care coverage offer a death benefit that your loved ones can partially or fully receive and is usually not subject to income tax. Moreover, the long-term care aspect can help cover the costs of care that might otherwise diminish the financial resources you intend to leave for your heirs.

What type of insurance is combined insurance?

Combined Insurance provides worldwide supplemental insurance such as accident, life, and critical care coverage. Their services are available in North America, Latin America, Europe, and the Pacific. The company’s main office is located in Chicago, Illinois.

Can you have two life insurance policies with the same company?

Is it possible to have more than one life insurance policy? Life insurance companies do not have any rules prohibiting you from owning multiple policies.

What is combo policy?

Essentially, it is a type of life insurance policy that combines two or more policies to meet the policyholder’s various insurance needs, investment goals, and savings objectives in one policy.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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