Wednesday, February 03, 2010
Long Term Care insurance can be purchased with a "single premium" deposit, as part of a universal life policy
There is a new twist on long term care insurance in the market. That is the “single premium” long term care policy. Lincoln Financial Group calls it the “Money Guard Reserve” (a trademarked product). At a particular age, the purchaser deposits a sum, usually $100000. He or she gets a total long term care benefit of about four times that, and a monthly maximum benefit (for up to six years) of about 6% of that. Presumably there are conditions upon which the benefits can he claimed (two ADL’s – activities of daily living -- compromised). There is a cash value which rises to slightly over the premium at life expectancy and then declines, and a similar value which is usually the same as the deposit, or slightly more around the years of life expectancy. There is also a death benefit for named beneficiaries.
Lincoln’s long term care link is here.
Applicants are screened medically for pre-existing conditions before being accepted.
But the specific Money Guard link is here. Lincoln says “MoneyGuard combines universal life insurance with long-term care benefits”.