Permanent Life Insurance with Long Term Care

  • CHUBB is our vendor for the Permanent Life Insurance with Long Term Care Insurance plan.  This is a new plan for the 2021 benefit year. Also known as LifeTime Benefit Term insurance, Permanent Life Insurance with Long Term Care helps protect you and your family if you were no longer able to provide for them. Your family can receive cash benefits paid directly to them upon your death that they can use to help cover expenses like mortgage payments, credit card debt, college tuition and other household expenses.  Cash benefits can also be paid directly to you while you are in a long term care situation.

Long Term Care

  • Long term care is when a person is classified as chronically ill and needs additional outside help.  The definition of chronically ill is the inability to complete 2 of the 6 daily living activities by yourself.

    Daily Living Activities:

    • Bathing
    • Dressing
    • Eating
    • Continence
    • Toileting
    • Transferring

     

    Types of Long Term Care:

    • Home health care
    • Assisted living
    • Adult day care
    • Nursing home care 

     

    If you become chronically ill and need long-term care, CHUBB will pay you 4% of your death benefit amount for 25 months. This 4% long term care payment will reduce your death benefit proportionately each month. You can use that money to pay any expenses you have. After receiving 25 months of long-term care, your death benefit amount will be zero. If you still need additional long-term care, then CHUBB will continue paying 4% of your original life insurance amount at no additional cost for another 25 months. 

     

    Example:

    Fred elects a $100,000 dollar permanent life insurance with long-term care policy. If he lives a long healthy life and never needs long-term care, his beneficiary will receive $100,000 dollars upon his death. Let’s say Fred needs some long-term care instead. CHUBB would pay Fred 4% of his $100,000 dollar life insurance policy for 25 months. That’s a $4,000 payment that could be used however Fred needs. After 25 months Fred’s $100,000 dollar death benefit would have been paid down to zero.  If Fred still needs additional long-term care, CHUBB will extend his 4% long-term care benefits for another 25 months at no additional cost. That is another 25 months of $4,000 payments. The permanent life insurance with long-term care policy will also restore Fred’s death benefit to 25% of his original policy so his beneficiary would receive $25,000 upon Fred’s death. 

Death Benefit Restoration

  • Long Term Care benefits reduce the elected death benefit proportionately. After 25 months of long term care benefits, the death benefit will be zero. CHUBB automatically restores 25% of the original death benefits at no additional cost. For example if an employee elected a $100,000 permanent life insurance with long term care policy and used 25 months of long term care, CHUBB would restore the death benefit to $25,000 payable upon the employee's death.

     

    After the coverage has been in force for two years, employees can receive 50% of their death benefits immediately, up to $100,000, if they are diagnosed as terminally ill under the Accelerated Death Benefit for Terminal Illness benefit included in the policy.

Benefit Coverage Amount

  • Coverage is permanent and guaranteed renewable as long as the premiums are paid. Premiums never increase and are guaranteed through age 100. After age 100, no premium is due. Coverage is portable.

     

    Employee Coverage Amount:

    • Minimum: $5,000
    • Guaranteed Issue: $100,000
    • Maximum: $225,000

     

    Spousal Coverage Amount:

    • Minimum: $5,000
    • Guaranteed Issue: $75,00 (Conditional on EOI)
    • Maximum: $112,500

     

    Child Coverage Amount:

    • Flat Amount: $25,000

Permanent Life Insurance with Long Term Care Information