Below are some frequently asked questions about Long-Term Care with Life Insurance.
Still have questions? Call us at (813) 736-4397 or email bhesupport@corestream.com.
What is long-term care?
Long-term care (LTC) is the personal care or supervision needed by people 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. It is estimated that 70% of people aged 65 today will need long term care service in their lifetime .1
How does this program help with Long-Term Care Costs?
This program is a Life Insurance policy with Long-Term Care (LTC) Benefits which provides dual protection with benefits that you can use 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 that helps protect your family if you are no longer around to care for them. If you need long term care services, you can access your death benefit early to receive a monthly payment you can use towards qualified services Payments received for long term care will decrease the total death benefit accordingly.
Can you explain in more detail how I might use the policy?
There are generally two ways you might use the policy:
As Life Insurance: If you don't need long-term care in your lifetime, the death benefit can be paid to your beneficiaries. As an example, if you buy a $200,000 life insurance benefit and don't need any of that for long-term care expenses, your beneficiaries would still be able to receive the full death benefit.
As Life Insurance with long term care needs: If you need long term care services, you can accelerate your Death benefit early to receive 4% of the total death benefit monthly for up to 50 months. Again, using the example of $200,000 in death benefit coverage you could receive $8000 per month for up to 50 months (about 4 years)
Restoration: Accelerating the life coverage for LTC benefits can reduce the death benefit to $0. With the Restoration benefit your life coverage can restore to 50% of the death benefit, up to a maximum of $50,000 on which the LTC benefits were based, therefore assuring a death benefit available up to age 121.
How much does it cost?
The premium is based on how much death benefit you select, the age that you are at the time of application (as of effective date) and your smoking status.
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 - $200,000, The maximum total LTC benefit will be 2x the death benefit amount. The long-term care benefit is paid monthly at 4% of the selected death benefit amount for a maximum of 50 months (about 4 years). If you have accelerated the total death benefit amount for your LTC benefit, your death benefit can be restored up to 50% of the original Death Benefit up to a maximum of $50,000.
Is 2 years long enough potential long-term care coverage?
Only you can make the decision about the right length of policy and coverage amount for you. However, the program is designed to help with the average typical time of long-term care claims which is 2-3 years depending on care venue.
Can I increase my policy at a later date?
Future enrollment opportunities have yet to be determined.
Is there a medical screen or underwriting involved in obtaining coverage?
If you select a death benefit within the program’s Guaranteed Issue amount and are between the ages of 19 and 70, and work a minimum of 20 hours a week, there are no medical questions and acceptance is guaranteed. Guaranteed issuance is unique to special enrollment periods and does not re-occur every year.
If I elect to apply for coverage beyond the available Guaranteed Issue amount for my age what are the medical questions?
We’re only offering Guaranteed Issue at this time.
If I apply for more than the Guaranteed Issue amount of benefit but am I denied, do I still receive the full amount up to my Guaranteed Issue limit?
We’re only offering Guaranteed Issue at this time.
How do you qualify for Long-Term Care Benefits?
You qualify for long-term care by requiring assistance with 2 or more activities of daily living as defined in the policy (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.
Does this benefit cover caregiving provided by my family qualify?
This benefit is intended to help with services provided by licensed, professional long-term care providers. It does not cover informal care provided by family or friends that are not licensed professionals.
Where does the plan pay for care?
If you qualify for LTC benefits, where you receive care is up to you (at home, assisted living, adult day care, nursing home).
What happens if I stop paying my premium?
After 10 years, paid-up benefits begin to accrue. At any point thereafter, if you stop paying premium, a reduced paid-up benefit is issued and can never lapse.
What happens if cancel my plan at a later date?
After 10 years, paid-up benefits begin to accrue. At any point thereafter, if you stop paying premium, a reduced paid-up benefit is issued and can never lapse.
How long does this policy last?
This policy is designed to last a lifetime. At the current interest rate, 100% of your elected benefit will be available through age 99. After age 100, your benefit will never be reduced below 50% at any time.
What happens if I never use the policy for long-term care?
Upon death your beneficiaries will receive the death benefit.
Can I get coverage for my family?
Spouse coverage is available.
Are my premiums guaranteed?
Yes, premiums are guaranteed through age 121. After age 100, no more premiums are due.
How do I pay my premium?
The premium will be deducted from your paycheck based on your pay schedule (monthly, bi-weekly…etc.).
Are the premiums pre-tax or post-tax?
The premiums are paid post tax.
How do I enroll?
You can enroll online. Login now to get started.
What if I leave my employer or retire?
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.
Can policyholders take a loan from the cash value? If yes, what are the terms?
There is no cash value accumulation on this policy. Instead, Reduced Paid Up policies begin accruing after 10 years.
Will premiums increase based on my age?
No, your premium does not increase due to age. You lock in your premium based on your age at enrollment.
Once I am receiving benefits under the plan, do I continue to pay premiums?
No, premium payments will be waived while you are receiving payments under the LTC benefit.