A hybrid product is a combination of two or more types of financial products. The combination of annuities and long-term care insurance provides and example of a hybrid product. There are, in theory, synergies and efficiencies that are created by the combination of otherwise separate products. There are also hybrid funds which invest in different types of securities--commonly bonds and stocks--and offer diversification to the investor who may be leery of putting all his money into just bonds or just equities.