There are variations between the policy language and benefits between the many companies that offer Long-Term Care Insurance; however, the primary features and benefit choices are comparable from company to company. Premiums and underwriting criteria vary dramatically between insurance companies.
When comparing long-term care insurance, you should recognize the differences between LifeSecure and other companies.
LifeSecure is a wholly-owned subsidiary of Blue Cross Blue Shield of Michigan, the largest BCBS organization in the United States, founded in 2006. Their reputation for outstanding customer service and product quality is well-known.
Their current product is designed to be an employee benefit at the workplace with reduced underwriting. It also offers fewer choices with limited benefits.
In November 2016, they announced that they would focus their long-term care insurance business as a product offered by an employer. They no longer provide individual policies outside of an approved employer group.
In most cases, this product is offered as a voluntary benefit paid for by the employee. However, like all Long-Term Care Insurance policies, the policy is guaranteed renewable for life. What this means is the policy is portable. So, if an employee were to leave their job, they can keep their policy. The policy may never be canceled unless you fail to pay the premium.
LifeSecure LTC Benefit Options:
You only can choose from the following monthly benefit and pool of money options:
- $50,000 initial pool of money with $1000 a month
- $100,000 initial pool of money with $2000 a month
- $200,000 initial pool of money with $4000 a month
- $300,000 initial pool of money with $6000 a month
You can select from several inflation benefits:
- 1% compounded
- 3% compounded
- 5% compounded
- no inflation
(remember, partnership rule require inflation benefits at most ages)
The policy does cover all areas and types of care, including home care, adult daycare facilities, assisted living facilities, memory care, and nursing home care.
It also features a "cash alternative," which allows the covered individual to receive 30% of what is usually allowed in cash at the time of claim.
It has a 90-day elimination period. This 90-day period is waived if you require care suddenly due to an accidental injury or stroke.
LifeSecure does offer Partnership Long-Term Care Insurance plans that offer additional dollar-for-dollar asset protection. You can learn more about the federal/state partnership program by finding your state on the LTC NEWS MAP.
Find the current and future cost of long-term care services where you live, along with the availability of partnership plans and tax incentives by clicking here.
Keep in mind, numerous state and federal regulations impact Long-Term Care Insurance. Each state's department of insurance regulates premiums. Because of regulation, an insurance agent or financial advisor is not able to give a consumer a special discount which is not available otherwise.
There are more similarities than differences when it comes to features and benefits. However, options and benefits do vary from company to company. Premiums can vary between companies by over 100% when comparing equal benefits.
Every company has its own underwriting rules which determine insurability and rate class. An experienced Long-Term Care Insurance specialist will understand these underwriting rules when helping you select the best company and policy options.
Be sure to seek the assistance of a qualified Long-Term Care Specialist to compare the features, benefits, and costs of each policy. You can find a trusted and qualified specialist who represents the major insurance companies that offer these products by clicking here.
Since your health is a primary consideration in determining your eligibility for coverage, it is always best to start planning before retirement when health is usually better. An experienced Long-Term Care Specialist will ask you several questions about your health to provide you with accurate quotes and professional recommendations.
Please note: Since every company has different underwriting rules, you could be eligible for coverage with one company and not another.
Because Long-Term Care Insurance is custom-designed, you can design the plan to fit your specific needs, concerns, and budget. A specialist will help you develop your plan to address your concerns. Generally, you can design a plan to meet some or all of these common goals:
- Safeguard income and savings
- Protect the lifestyle of your spouse/partner
- Provide options for quality care
- Reduce the stress and burdens otherwise placed on family members
- Give your adult children time to be family
- Provide a legacy for loved ones
State variations may apply.