Company and Product recommendations
Type:
Long Term Care Rider
Chronic Illness Rider
Benefit Method:
Indemnity: cash, maximum benefit policy allows best
Reimbursement (covers actual expenses)
Benefit Uses:
At the insured/owner’s discretion best
Qualifying Services: certified home health provider, nursing home, assisted living facility
Note: Long Term Care (LTC) riders can use the indemnity or reimbursement method; the indemnity method with a LTC rider does not require receipts, but some may require qualifying services
Chronic Illness riders are the indemnity method at the insured/owner’s discretion
Benefit Amount:
1%, 2%, 3%, 4% (4% sufficient at higher death benefit amounts)
24% annually
IRS per diem ($410 daily, $12,470 monthly in 2024) amount tied to inflation best
Benefit Amount:
level benefit
benefit increases with the increasing death benefit option (option 2) best
Lifetime Maximum Benefit:
$1m to $3m maximum, general range
$5m high end maximum
none stated best
Residual Death Benefit :
Yes, after 100% of death benefit , lump sum (e.g. $5,000) or percentage (e.g. 10%) best
none provided
10% of original policy benefit
no, must maintain a fixed amount or percentage of original death benefit for residual death benefit
Cost up front or back end:
additional premium charge for rider
lien method: charge at claim
Long-Term Care Rider covers temporary and permanent conditions
Chronic Illness Rider, with a few exceptions, covers only conditions expected to be permanent
Waive Premiums On Claim:
No, policy charges and premiums continue while on claim
Yes, charges for the rider are not waived
Yes, charges for the contract not waived
premium credit
premiums not required, rider charges cease, other charges continue to apply, policy will not lapse while on claim best
Recertification Required:
no best
every 12 months
every 12 months at the expense of the owner/insured
every 12 months, only as often as reasonably necessary, at the expense of the company
Do not assume level premium payments:
LTC charges are guaranteed
LTC charges are not guaranteed level
Tax Qualified Status:
Long Term Care (LTC) Rider – classified as 7702B
Chronic Illness Rider – Classified only as 101(g)
7702B Intended to be Qualified Long Term Care Insurance
101(g) “Accelerated DB for Chronic Illness”; does not fall under health regulations
Private Market Options for Financing Long Term Care Services by the National Association of Insurance Commissioners (NAIC)
Please contact me for a free and strictly confidential. Many more options available.
Licensed Agent: Sean Drummey
phone: (910) 328-0447
email: spdrummey@gmail.com
national producer #5534308