LTC insurance is a good idea for some people.  Buying it through a shell game combining life insurance or an annuity, is usually a bad idea.  I wonder if what happened here is that the life insurance cash value was converted to an annuity (taxable, to extent that proceeds exceed basis, which often happens with older policies) and then the annuity pays the annual premiums on the LTC policy (deductible each year, subject to limits based on age).  

Some people can't afford LTC insurance.  Others have so much money they are self-insured.  For those not in those two categories, shopping can be difficult. Insurers will tell them, "we can't raise your premium unless we raise the premium for everyone with this policy."  Then a few years later, they tell everyone with the policy, "we have a newer and better policy, that costs less, if you qualify."  Those who are still healthy of course sign up.  Those who can't remember what they had for breakfast, must keep the old policy, on which the premium has been raised for everyone.