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 LTC benefit will keep paying up to 3x the life benefit ($100,000 life benefit = $300,000 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 activates 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: It depends, if you pay into your plan for more than 10 years, you will receive a reduced policy that you can take with you, but if you cancel before then, you will forfeit all premiums paid.
5. How much does it cost?
Answer: Your premium is based on how much death benefit you select, if you're a nicotine user or non-nicotine user, and your age based on the policy effective date.
6. Is there a medical screen or underwriting involved in obtaining coverage?
Answer: It depends, most employees will qualify for guaranteed acceptance – meaning no health questions during the special enrollment. Those eligible for guaranteed acceptance include actively at work full-time benefit eligible employees, age 19-70. Employees age 71-79 may enroll with limited health questions. Coverage is also available for spouses/partners with limited health questions up to age 70.
7. What happens if I never use the policy for long-term care?
Answer: Upon death your beneficiary would receive the full amount of in-force death benefit.
8. How long do my Long-Term Care benefits last?
Answer: Long-term care benefits can last for up to a total of 75 months at a 4% withdrawal rate from your death benefit.
9. What happens if I use all my life insurance benefit for long-term care?
Answer: There is no additional death benefit. Your long-term care benefit would pay out a total of 3x your life insurance benefit. For example: $100,000 of life insurance would give you $300,000 long-term care benefit.
10. Can I get coverage for my family?
Answer: Family coverage is available for spouses and children however; coverage amounts and underwriting may vary. In some cases the employee must apply for family coverage to be issued.
11. Are my premiums guaranteed?
Answer: Life insurance premiums are guaranteed. A portion of the premium is for the long-term care benefit. That portion may increase overtime with regulatory approval, however; they cannot single out an individual for a rate increase.
12. 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.).
13. How do I enroll?
Answer: You can enroll online or contact our team for assistance.
14. 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.
15. Can my benefits ever decrease?
Answer: Based on current interest rate assumptions the death benefit is designed to remain level through age 120 and fully paid up at age 100. In the event of a long-term decline in interest rates, your coverage does contain a guarantee ensuring that the initial death benefit will last for the longer of 25 years or to age 70 and thereafter can never be less than 50% of your initial death benefit.