Below are some frequently asked questions about Long-Term Care with Life Insurance.
Still have questions? Email corestreamsupport@corestream.com.
Long-term care (LTC) is the personal care or supervision needed by persons of all ages for an extended period (custodial, supervisory, or skilled care).
Often this is because of conditions associated with the effects of aging, but long-term care may be needed at any time, due to an accident or illness. At some point in our lives, it is estimated that more than 60 percent of us will need assistance with things like getting dressed, driving to appointments, or making meals.
It is a common misconception that long-term care is covered by health or disability insurance. Long-term care services are typically not covered by Medicare, Medicaid, private health or disability insurance.
This means you will need to rely on your savings, your family or insurance to cover long-term care costs. With private nursing rooms now costing over $100,000 a year on average and costs are expected to rise, it is important to have a plan.
This program is a Universal Life Insurance Policy with Long-Term Care (LTC) Benefits which provides dual protection for the cost of long-term care and financial support for your beneficiaries after you are gone.
The typical structure is you elect a life insurance benefit amount and will also get long-term care coverage. The long-term care coverage amount is a multiple of the life insurance benefit amount and paid out in monthly increments.
There are generally two ways you might use the policy:
If you don't need long-term care in your lifetime, there is still a death benefit available to your beneficiaries. As an example, if you buy $100,000 of life benefit coverage and don't need any of that for long-term care expenses, your beneficiaries would still be able to receive up to $100,000 death benefit.
If you need coverage for Long-Term Care service, the benefit will pay 4% monthly of the total amount of coverage you buy once you qualify for benefits. Again, using the example of $100,000 in life benefit coverage you will receive $4,000 a month for up to 25 months (about 2 years) for a total potential benefit of $100,000.
The best way to see your pricing is to enter your information online. You are under no obligation to purchase once you start the enrollment process and can exit anytime.
You will enter some personal information and choose a death benefit from $25,000 - $100,000, in increments of $25,000. The maximum total LTC benefit will be 1x the death benefit amount. The long-term care benefit is paid monthly at 4% of the selected death benefit amount for a maximum of 25 months (about 2 years).
Only you can make the decision about the right length of policy and coverage amount for you. However, the program is designed to cover the average typical time of long-term care claims which is 2-3 years depending on care venue.
The premium is based on how much death benefit you select, the age that you are at the time of application and your smoking status.
Future enrollment opportunities have yet to be determined.
If you select a death benefit within the program’s Guaranteed Issue amount and are between the ages of 18 and 70, there are no medical questions and acceptance is guaranteed. Guaranteed issuance is unique to special enrollment periods and does not re-occur every year.
We’re only offering GI at this time.
We’re only offering GI at this time
You qualify for long-term care by requiring assistance with 2 or more activities of daily living (transferring, continence, bathing, dressing, eating, toileting) or you have cognitive impairment expected to last more than 90 days. You also need to be receiving care from a licensed professional in a LTC facility, nursing facility or receiving home health care. Benefits are payable after you meet your 90-day elimination period. Meaning, benefits will only begin payment 90 days (about 3 months) after your LTC needs begin.
A qualified health professional will need to certify that you meet the activity of daily living or cognitive impairment requirement.
Not directly, the long-term care benefit does not directly cover caregiving provided by family. The benefit is for professional long-term care. However, the full benefit amount is paid monthly when you meet the criteria for benefit payment and payments begin. If the benefit amount is not entirely consumed by long-term care expense, any cash left over can be used at your discretion for informal care expenses.
If you qualify for LTC benefits, where you receive care is up to you (at home, assisted living, adult day care, nursing home).
The universal Life Insurance policy will only pay LTC benefits for care received in the United States or Canada. Death benefits are paid anywhere in the world.
After 10 years, paid-up life insurance benefits begin to accrue. At any point thereafter, if premiums stop, a reduced paid-up benefit is guaranteed and provides flexibility is perfect for retirement.
After 10 years, paid-up life insurance benefits begin to accrue. At any point thereafter, if premiums stop, a reduced paid-up benefit is guaranteed and provides flexibility is perfect for retirement.
This policy is designed to last for your lifetime. At the current interest rate (3%), 100% of your elected benefit will be available through age 99 for non-tobacco users and age 95 for tobacco users. If the interest rate decreases, benefits available after age 70 may reduce. The actual reduction will depend on the interest rate, and the issue age of your policy. However, coverage cannot be reduced during the first 25 years your policy is in effect, the interest rate is guaranteed never to drop below 2%, and your benefit will never be reduced below 50% at any time.
Upon death your beneficiaries will receive the death benefit.
Spouse coverage is now available!
Yes, premiums are guaranteed through age 121. After age 100, no more premiums are due.
The premium will be deducted from your paycheck based on your pay schedule (monthly, bi-weekly…etc.).
The premiums are paid post tax.
You can enroll online. Login now to get started.
This policy is completely portable – meaning you take the coverage with you if you were to change jobs or retire from your current employer. You should contact Chubb to arrange for direct billing, and you can continue coverage without any change in premium or benefit amounts.
There is no cash value accumulation on this policy. Instead, Reduced Paid Up policies begin accruing after 10 years.
No, your premium does not increase due to age. You lock-in your premium based on your age at enrollment.
There is no pre-existing condition exclusion on this plan. However, the loss of two ADLs or cognitive impairment diagnosis would need to begin after the effective date of coverage.
No, premium payments will be waived while you are receiving payments under the LTC benefit.
This is a 7702(b) compliant rider. Benefits are not taxable to the employee.
