Types of LTC policies
| Type of product | Carriers who offer product | Pros of this product type | Cons of this product type |
|---|---|---|---|
| Traditional LTC insurance | Mutual of Omaha Transamerica | Lowest initial premium Can easily include inflation | History of substantial rate increases Limited benefit duration |
| Life insurance with an LTC rider | Axa John Hancock Nationwide * Securian (formerly Minnesota Life)***** | Best option when these is a high need for life insurance | No inflation option Limited benefit duration |
| Life insurance with a chronic or critical benefit | American General ** | LTC CE not required to sell Least expensive Life focused option | Cost of rider may affect benefit when received Definition of chronic or critical illness |
| Asset Based Care | Lincoln Mass Mutual MoneyGuard Nationwide * CareMatters One America Asset Care and Annuity Care (see rows below) | ||
| Life insurance based | Lincoln Mass Mutual *** Nationwide One America**** | Single pay or multi pay (up to 10 years or age 65) Leveraged for LTC coverage more than life with an LTC rider Fixed premiums Joint coverage or multi life discount | Can be more expensive that other options |
| Annuity Care | One America | 1035 from existing policy creates tax free benefit for LTC May provide lifetime coverage | |
| * Nationwide is the only provider of indemnity benefits ** American Generals rider is triggered in the same way LTC riders are triggers and pays out in a similar fashion. *** Mass Mutual product is only available in a single premium. **** One America is the only carrier that offers a lifetime benefit *****The Securian Product is still in the approval process in some states. |
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So which one is right for your client’s individual needs?
Here is a decision flow we often use to determine the best product options and carriers for each case
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