A simple list of life insurance policies that provide long term care benefits, linked benefits, or hybrid products.
A. Single premium hybrid policies
1) Nationwide’s “YourLife CareMatters®”
This is a qualified LTC policy under the IRS 7702B (b) code.
Benefits
Cons
Cash indemnity benefit period
Less death benefit compared to Universal Life + LTC rider
Residual 20% death benefit
Not available in a few states (e.g. CA, NY) as of November 2016
No risk of premium increase
Several options for inflation protection
Varied premium payment options
Return of premiums
2) MassMutual CareChoice One
This is a tax-qualified long term care insurance policy from Mass Mutual.
Benefits
Cons
Single-premium Whole life + LTCi rider
Reimbursement method
Dividends earned
Unavailable in New York state as of November 2016
Non-guaranteed
Increasing death benefit
Guaranteed, increasing surrender values
Inflation protection
3) Lincoln MoneyGuard® II
Benefits
Cons
3% or 5% compound inflation protection
Reimbursement method
Return of premium
International benefits
Residual death benefit
Couples discount
4) Pacific Life’s “Pacific PremierCare”
Benefits
Cons
Competitive 5% simple inflation
Reimbursement method
Return of premium option
2-8 years benefit period
Couple’s discount
5% compound inflation option
International benefits
5) Asset-Care I from State Life
Benefits
Cons
Unlimited potential benefits
Reimbursement method
5% compound inflation protection
Additional premiums required if Asset Care Plus rider is selected
Return of premiums
Guaranteed interest (4%)
Fixed premiums
Annual premiums with single-pay option
B. Life Insurance Policies with ‘LTC’ benefits
Long term care riders pay either temporary or permanent claims. The LTC rider covers recoverable ailments. Some other policies (not included below) have a chronic illness rider that covers permanent conditions for the remaining years of the policyholder’s life.
6) Nationwide’s ‘Long Term Care Rider’
(Available in New York and California)
Benefits
Cons
Cash payout
Limited cash payout
Tax qualified status
Limited international benefits
Accelerated death benefit
10% residual death benefit
International benefits
7) Transamerica’s Long Term Care Rider
Available in the state of California.
Benefits
Cons
Tax qualified
Scaling benefits payout
Cash payout
Return of premiums
Residual death benefit
8) John Hancock’s ‘Long Term Care Rider’
Benefits
Cons
Higher policy amount
Reimbursement method
No direct payout (pays for bills/receipts)
9) AXA Equitable
Available in New York State. Also available in California as BrightLife Grow.
Benefits
Cons
Cash payout
Payouts limiting formula
Tax qualified
Possible international benefits
Option for increasing face amount
NOTE: Insurance companies usually make adjustments and benefits sometimes change. As a result, this information cannot be guaranteed. Consult a professional insurance agent if you’re looking to buy a police. We can also help you compare top providers and find a hybrid insurance policy that’s ideal for you.
