In recent months, a number of major life insurance companies are offering Long Term Care or Living Benefits as a low-cost rider to their life insurance coverage!
Finally – an affordable way to help pay for some Long Term Care expenses.
Is it true? Or just a gimmick?
Yes! Long Term Care is Affordable and Sometimes Added for Free to Life Insurance Combo Policies
The simple answer is, YES! It’s true! This long term care is not just affordable… sometimes it is added for free onto life insurance policies.
Each carrier joining this marketplace offers a slightly different product, with unique characteristics.
Today, let’s look at one of my favorites.
Quick Guide to Life Insurance/Long Term Care Combo
- Term and Permanent Policies with Living Benefits from Transamerica
- Tips on How to Assess Your Needs and the Affordability
- Long Term Care Insurance for the Elderly
- How to Find Long Term Care Coverage
Transamerica is unusual in that they offer long term care benefits as part of their permanent product, as well as part of their term product. So, you have a choice!
Let’s Talk More about its Affordability
I am often asked about Long Term Care coverage, and if it can be added to a life insurance policy I am quoting. Most clients have already researched Long Term Care, and found it to be cost-prohibitive.
As my training aptly put it – “Who should get Long Term Care coverage?” and the shocking answer is – “those that can AFFORD IT!” Even the insurance companies know that cost is the crux of the matter!
If you are in your 30s, 40s or 50s, you are probably still looking at term coverage, as permanent plans are still quite costly. But you can still access a wonderful life insurance plan with Living Benefits.
The product is Trendsetter LB (LB stands for Living Benefits) which is only about 30% more expensive than their regular term policy.
This additional premium adds wonderful, wide-ranging living benefits, so if you become chronically, critically, severely cognitively or terminally ill during your lifetime, your benefits become available for use in a nursing care facility, adult day care facility, or in your home.
The Cost is Affordable
For example, a 57 year old woman, rated at Preferred Best needing $100,000 in 20 year term coverage would pay $421/year for a traditional term policy without living benefits.
However, the Transamerica Trendsetter LB policy would cost $542/year and would offer, in addition to $100,000 in death benefits, full access to her death benefits during her lifetime.
In the event she developed a critical condition, such as:
- Heart attack,
- Stroke or certain cancers,
- A severe cognitive illness such as Alzheimer’s Disease,
- Any terminal disease, or if kidney failure or major organ transplant caused her to need assistance to bathe and dress herself.
She could access up to 2% of the death benefit each month until she used up the allowed portion of her death benefit.
- For Chronic illness, the maximum she can access is 90% of her total, and
- For Critical illness she can access 100% of her death benefit amount.
Even after she used the entire benefit amount, she would still have $10,000 remaining to cover final expenses upon her death.
Of course, if the benefits are not needed during her lifetime, they will simply be available to her beneficiary upon her death as in a traditional policy. There is a one-time administrative fee assessed when the living benefits are begun, as well as a 2-year exclusion at the beginning of the policy, and a waiting period once the condition is diagnosed as determined by each state.
This product offers the broadest range of living benefits, and is so easily accessible whether care is needed in a facility or in the home.
If you are in your 60’s or 70’s, you are probably looking at a permanent life insurance policy – one that will last the rest of your life, no matter how long you live – right?
Well, you’re in luck, because Transamerica offers a Guaranteed Universal Life policy, with a no-lapse guarantee and Long Term Care Benefits!
The TransACE policy will cost about 15% more with their Long Term Care Rider, but what a wonderful protection bonus it adds!
Its care benefits are similar to those offered in the term policy – including:
- Maintenance or personal care in a non-acute care facility such as a Long Term Care facility, Adult Day Care or in the home
Chronic illness and severe cognitive illness are both covered after a 90 day elimination period.
In the case of a 67 year old male, rated Preferred, $100,000 in lifetime coverage would cost $2,777/year without the LTC rider, but for only 15% more, $3,261 annual premium, the Long Term Care rider will give all the benefits listed above, as well as a Multi Flex Surrender enhancement endorsement.
This allows you to surrender your policy, if desired, at your 15 year and 20 year anniversary, as well as any time after your 25th policy anniversary, and receive 100% of your gross premiums paid to that point.
So, TransACE offers a traditional death benefit, Terminal and Chronic Illness Long Term Care benefits, No Lapse Guarantee and Multi Flex Surrender advantages.
Quite a big bang for your buck!
Talk to an independent like me because I have access to dozens of insurance companies and would need to obtain more information in detail to provide you with options.
If you have a chronic illness, a critical or cognitive illness, or other specialized life insurance needs we can give you valuable advice and help you to find a policy that suits you.
Whatever your needs or questions then please call me direct at 877 – 443 – 9467.
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