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Jun 3, 2016 • Tom Riekse Jr

New long-term care insurance product to offer unlimited benefit option



As most people know, LTC Insurance used to be a lot less expensive due to a variety of factors.  Because of the lower premiums, a popular option on plans was the unlimited or lifetime benefit period.

For example, I bought my policy back in 2003.  The standalone policy I purchased includes a current monthly benefit amount of $6,300, a 5% compound inflation rider, and and an unlimited benefit period.  The current annually premium I pay is $1,180.  (One reason the premium is so low is that 5% compound has more than kept up with the current cost of care - and when I received rate increase notices I simply reduced the monthly benefit amount)

Compare this to current rates.  If I was to buy a current policy with a $6,000 monthly benefit and 5% compound inflation coverage using my 2003 age the premiums would be about $4,000 annually. Furthermore, the maximum plan benefit is $500K!

Now, a new standalone LTC product is coming out that offers old school benefits - 5% compound inflation coverage and unlimited benefit periods.  It's available from National Guardian Life Insurance Company, an A- rated carrier based in Madison, Wisconsin.  In addition to offering lifetime benefits and 5% compound inflation, this policy also features other options that were popular in past years, including single pay and limited pay plans.

If you want more details, you can go to our NGL product page.

With so many carriers no longer offering lifetime benefits, why is this product bucking the trend? It has to do with the the architect of the policy - Lifecare Assurance, a company that has designed many LTC policies over the years. To understand the philosophy of the thinking behind the current LTC plan designs, you can listen to a webinar LTCI Partners conducted with the president of LifeCare, Jim Glickman, by going to this link.

Options are great to have, so the addition of a new carrier to LTC Insurance is good news for advisors and their clients.


Tom Riekse Jr

Written by Tom Riekse Jr

Tom Riekse, ChFC, CLU, CEBS is the Managing Director of LTCI Partners, one of the largest national distributors focused on long term-care planning. LTCI Partners works with financial advisors, benefit brokers, associations and anyone else interested in helping protect people against the devastating financial impact of a long-term care event.
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