Pacific Life offers hybrid long-term care insurance products under the Premier Care umbrella names. These are federally tax-qualified linked benefit LTC policies that provide coverage for long-term care expenses or pay a death benefit to beneficiaries (if LTC is not needed). Premier Care LTC products support return of benefits if the policyholder quits or becomes unable to continue contributing premiums.
This configuration basically addresses the three major concerns that LTC customers always have;
- What if I purchase a long-term care policy but never require one?
- What if the rates rise and I cannot afford it?
- What if I realize later that the policy is just not for me?
The Pacific Life Premier Care ensures that there is 100% money back guarantee, no increases on premiums and full usage of the contributed premiums. If you are looking around for the best LTC policy, this page takes a deeper look on premier care so you can make a more informed choice.
| Hybrid LTC policies are a preferred alternative to traditional ‘use-it-or-lose-it’ policies. This is because these policies provide LTC coverage (if needed) or mature to a death benefit that is passed on to your beneficiaries. LTC policyholders are attracted to this approach because it means that no matter what happens, their premiums will come in handy. |
Is Pacific Life a Good Company?
Pacific Life insurance company has been around for at least 150 years. It is based in Newport Beach, California and employs more than 3,000 people. Pacific Life started with accident insurance products in 1885 before consolidating with Conservative Life in 1906. Ratings from globally recognized agencies such as A.M Best and Moody’s are usually a good way to determine whether an insurance company is good enough. Pacific Life has a rating of A+ (superior) from A.M. Best, AA- (very strong) from Fitch, A1 (good) from Moody’s, and AA- (very strong) from S&P Global. These are strong financial strength ratings that point to a reputable insurer.
Pacific Life Hybrid LTC Configurations
Pacific Life offers various hybrid long term care insurance policies under the Premier Care Choice and Premier Care Advantage product names.
1. Pacific Premier Care Choice Max
This is a whole life insurance with long term care benefits that is available in most states. It rides on Pacific’s LIVE, QUIT, OR DIE hybrid LTC approach (the policy helps pay for LTC expenses when you are alive, allows return of premium benefit if you surrender, and pays out a death benefit to your beneficiaries if you pass away). This hybrid long term care plan comes with options for inflation protection and other customizable features to suit your needs.
With Premier Care Choice Ma,x an initial lump-sum premium deposit of $100,000 gets you $312,565 in LTC benefits on day one, which can build up to $584,361 by the time you reach the age of 80. Should you choose to surrender your Choice Max policy, you receive only 70% of your premiums back.
2. Pacific Premier Care Choice 100
This hybrid LTC product from Pacific Life works more or less the same as the Choice Max policy. It offers the LIVE, QUIT, or DIE, benefits flexibility and supports inflation protection and other customizable features. The main difference between Choice 100 and Choice Max lies in how premiums are distributed, and how much benefits you get back if you quit (surrender your policy).
Given an initial $100,000 premium, you get $270,781 in LTC benefits on day one. This can build up to $506,244 by the time you reach the age of 80. With this policy, 100% of your premiums are returned if you decide to quit for one reason or the other.
3. Pacific Premier Care Advantage
This is a universal life insurance with long term benefits that is available in California only. It is based on the flexible LIVE, QUIT, or DIE approach so that you end up getting value from your premiums no matter what happens. You may purchase the policy with a one-time premium payment, or spread-out premiums over a period of time ranging from 2 to 8 years. Inflation protection is available at a rate of 3% or 5%.
Note: Premier Care Choice hybrid LTC plans are available in most states across the country while Premier Care Advantage is only available to residents of California.
Pacific Life Premier Care Review
As would be expected of any good hybrid long term care product, Pacific Life premier care offers leverage against long term care expenses. It comes with lots of customization options that make it easier for different policyholders to buy insurance that is customized to their needs. Compared to hybrid LTC products from other insurers, it offers a flexible underwriting process that may make it better suited for some policyholders.
What is Covered?
The policy is quite comprehensive, covering a very wide range of issues. Regardless of where one chooses to receive their care, the company will refund your out-of-pocket expenses. There is usually no waiting period for home care benefits but there is a 90-day waiting period for care received in nursing facilities. However, to qualify for benefits, there must be certification from a doctor that you require assistance with at least two of six daily living activities.
Qualifying for Pacific Life LTC
To be eligible for Pacific Life long term care insurance, you need to be aged between 30 and 75 years. Primarily, Pacific Life LTC plans offer two different rates based on whether you are a smoker or a non-smoker. Spouses discounts are available for applicants who are legally married or are in a domestic partnership. The underwriting process for Pacific Life health and LTC insurance is pretty straightforward. You will be contacted to collect your personal history and a physician’s statement is also required for applicants over the age of 50.
Conclusion
From a design perspective, the package is among the best you will get in the market. The additional customization and wide period for payouts make the policy even more attractive. There is usually a discount for those married or partnered even if only one of the partners obtains the policy. This is at times overlooked by underwriters while it could actually provide benefits for those applying for the policies. There is only one policy whose benefits exceed Pacific Premier Life’s 8 years, State Life’s Asset Care.
