1. How does the policy work?
Answer: One policy with two benefits – life insurance coverage for your family and long-term care benefits if you need them. Building a plan is simple:
i. Choose a life insurance benefit $25,000 -$150,000
ii. You can access 4% of the life benefit per month if you need LTC (i.e. $100,000 of life = $4,000 per month for LTC)
iii. The total LTC benefit is equal to the life benefit ($100,000 life benefit = $100,000 total for LTC)
2. How do I use the benefits for long-term care?
Answer: If you are diagnosed with a cognitive impairment, or cannot perform two of six activities of daily living and that condition is expected to last 90 days, you can withdraw from your death benefit. The six activities of daily living are bathing, eating, transferring, toileting, continence, and dressing.
3. If I use my Death Benefit for long-term care, but don’t completely exhaust it – what happens?
Answer: If you use some, but not all of the benefits for LTC you would receive the remainder of the initial death benefit.
4. What happens if I stop paying my premium?
Answer: Coverage will remain in force as long as there is sufficient net surrender value to cover the monthly expense, rider and cost of insurance charges. If insufficient, the coverage will lapse.
5. How much does it cost?
Answer: The premium is based on how much death benefit you select and the age that you are at the time of application.
6. Is there a medical screen or underwriting involved in obtaining coverage?
Answer: It depends on the amount of death benefit selected. If you select a death benefit within the program’s Guaranteed Issue amount, there are no medical questions and acceptance is guaranteed. If you choose a higher death benefit amount than what is offered within the underwriting limits, medical underwriting will apply.
7. How long does this policy last?
Answer: The illustration provided when you receive your coverage certificate will demonstrate the projected coverage period at the selected planned premium rate under both the current and guaranteed scenarios. The coverage pays the death benefit if death occurs while the coverage is in force before age 95. If coverage is still in force age 95 (maturity age) and the insured is still living, the net surrender value is paid as a maturity benefit and coverage terminates. You will also receive an annual statement on the anniversary date of your policy to review your coverage period.
8. What happens if I never use the policy for long-term care?
Answer: Upon death your beneficiary would receive the full amount of death benefit that you applied for. If you reach the maturity age of 95, the net surrender value is paid as a maturity benefit and coverage terminates.
9. How long do my Long-Term Care benefits last?
Answer: Long-term care benefits can last for up to a total of 25 months at a 4% withdrawal rate from your death benefit.
10. What happens if I use all my universal life insurance benefit for long-term care?
Answer: There is no additional death benefit. Your total long-term care benefit equals your universal life insurance benefit. For example: $50,000 of universal life insurance would give you $50,000 long-term care benefit.
11. Can I get coverage for my family?
Answer: Coverage is available for your spouse however; coverage amounts and underwriting may vary. The employee must apply for spouse coverage to be issued.
12. Are my premiums guaranteed?
Answer: Your premium will be based on your age at the time of issue. Premiums can fluctuate based on the cost of the insurance and value expectations within legal maximums and Allstate minimums. You will receive an annual statement on the anniversary date of your policy that will explain the details of your coverage and your premium.
13. How do I pay my premium?
Answer: The premium will be deducted from your pay-check based on your pay schedule (monthly, bi-weekly…etc.).
14. How do I enroll?
Answer: You can enroll online or contact your LTC enrollment team for assistance.
15. What if I leave my employer or retire?
Answer: This policy is completely portable – meaning you take the coverage with you with if you were to change jobs or retire from your current employer. The bill will be transferred to come directly to you and you can continue coverage without any change in premium or benefit amounts.
16. Can my benefits ever decrease?
Answer: This is adjustable universal life insurance that can be decreased in coverage (subject to US Tax Code compliance) or increased in coverage (subject to underwriting), but there are no scheduled decreases in coverage.