If you are after multiple streams of income, you’ve come to the right place! Yesterday I wrote about our new multi-life guaranteed issue long-term care insurance program from Loyal American Life Insurance Co. Today I want to shift gears a bit and highlight a life insurance product that has applications not only in the long-term care arena but also for life and disability buy-out prospects.
Nationwide (yes, the one’s that are on your side) has a term/universal life product that has an Accelerated Benefit Rider for Health Care. Health care includes terminal illness and long-term care. The benefit qualification for long-term care is the same as what you will see on a traditional LTCi policy. The reason I call this a term/UL product is that it has a guaranteed death benefit for the life of the insured and it is not designed for cash accumulation. The premium, however, is guaranteed.
The Accelerated Benefit Rider pays 2% of the death benefit to the policy owner, upon qualification, for up to 50 months. The amount paid upon claim is a hybrid per diem/cash benefit. It does require certification by a doctor and a minimal amount of care provided by a formal (paid for) caregiver. However, once the insured qualifies for benefits, regardless of billed expenses, they will get a monthly check to spend, for the most part, as they like.
There are a number of applications for this policy. Here are just a few:
It is for the prospect that just doesn’t want to purchase traditional LTCi but still wants to hedge his or her bets.
It can be used in combination with traditional long-term care insurance policies as a return of premium feature or as a benefit that is there in case their limited LTCi benefit plan runs out.
It is for younger clients who have a life insurance need and or who have difficulty qualifying for disability income coverage.
It is a perfect combo product for both sides of a Buy/Sell agreement; life and disability buy-out.
Nationwide’s Ultimate UL will also provide us with some underwriting flexibility, particularly with prospects that qualify for life insurance but have difficulty with traditional long-term care insurance.
You can learn more about this Nationwide product at our Multiple Streams of Incomemeetings on September 25th & 26th. Register Today!