There are differences between the policy language and benefits between companies that offer Long-Term Care Insurance although the major benefit options are often similar. However, key differences do exist. It is important to know and understand the differences between Minnesota Life/ Securian Financial and other major companies.
Minnesota Life has gone through a rebranding and has adopted their parent company name, Securian Financial. They have an enhanced version of SecureCare, an asset-based policy referred to as a “hybrid” policy. This is a combination of life insurance policy with comprehensive coverage for long-term care.
With hybrid policies the policyholder is guaranteed to be able to get money from the policy in three ways:
You need long-term care services and supports – Just like any tax-qualified long-term care policy, you receive tax-free benefits when you meet the benefit triggers – two of six activities of daily living or supervision due to cognitive impairment.
You die – Like any life insurance policy, when you pass away your beneficiaries will receive the tax-free death benefit.
You change your mind – If for any reason you need money you can receive the cash surrender value. While very few people will ever consider doing that, it gives many people additional peace-of-mind knowing you have access to the money in the policy.
Perhaps the biggest benefit of this hybrid long-term care policy is the 100% cash benefits available when you require long-term care services. Unlike most policies, which base their benefit on bills you receive for care, you get the full cash benefit once you meet the benefit trigger. This gives you the ultimate in control on how you receive your care when you need it. Despite receiving cash at the time of claim, the benefits are tax-free.
Bill receipts are not required by Minnesota Life/Securian Financial. Informal care, provided by a spouse, friend, or family members is covered under the informal care provision in the policy.
You also have flexibility on how you pay the premium. You can pay one single premium and you have a fully paid policy. Annual (5, 7, 10 or 15 years) premium options are available. The premium is a fixed guaranteed premium which can never go up. However, you can only pay annually (no monthly, quarterly or semi-annual options are available).
If you are not paying one single premium you do not have a waiver of premium available if you were to go on claim for long-term care during that period. If you choose a multi-year premium payment plan and are unable to to pay the remaining premiums for any reason, you will receive a reduced paid-up benefit proportional to the amount of premium you already paid.
There is a spousal/partner discount of premium available. If you are married or in a long-term committed relationship, a discount is available and only one person needs to apply in order to obtain this discounted premium. Please note: some state or county regulatory variations may apply.
There is a 90-calendar day elimination period in the policy. Caregiver Training and Home Modification benefits are available. These benefits can be obtained prior to completing the elimination period. This allows the policyholder to request these benefits immediately after the claim being approved. It is required that this is included in the policyholder’s plan of care.
SecureCare is one of the few asset-based “hybrid” products whose long-term care rider premium may be tax-deductible like a traditional policy.
This product also features international benefits … in cash … equal to 50% of the normal benefit.
Matt McCann works with all the major companies in the industry and can compare features and benefits as well as the costs between the plans.
Companies have significant premium differences. Premiums are based on the amount of benefits you wish to have along with your AGE, HEALTH and specific discounts you might qualify for.
Features and options can vary from company to company. Matt McCann recommends optional features that provide outstanding value for the policyholder.
Underwriting criteria – the health conditions you have today that might be insurable will vary between companies. Matt McCann understands the underwriting guidelines for Minnesota Life/Securian Financial and all the major companies in order to match you with the best and most affordable options.
Discover the differences and compare. Since 1998, Matt McCann has helped people plan for the financial costs and burdens of aging with affordable Long-Term Care Insurance. He will help you determine if coverage is suitable for you, if your health qualifies for coverage, and then recommend appropriate benefits and options.
Long-Term Care Insurance is custom designed specific to you. Matt’s general philosophy is to design an affordable plan with the best company available (based on your current age and health) so you can take a catastrophic situation and make it manageable. The idea: Safeguard your retirement funds (401(k) IRA 403(b) while reducing the tremendous burdens that are placed on your family when you have an aging or health issue and need extended care.
State variations may apply.
Long-Term Care Insurance is Easy and Affordable Asset Protection. Most people are surprised how affordable a plan can be especially if you obtain coverage before you retire when you are in good health.