Available with AXA Equitable and MONY Life Insurance Company of America’s (MLOA) universal and variable universal life insurance policies, the Long-Term Care Services Rider is designed for clients who need both life insurance protection and a relatively affordable, effective way to pay for potential long-term care costs.
Why choose the Long-Term Care Services Rider?
- More comprehensive coverage — Claims can be temporary, with client’s physician certifying that the insured is unable to perform two activities of daily living (ADLs) or suffers from severe cognitive impairment.
- Indemnity claims are simpler, easier, and quicker — no receipts needed, and clients can use the funds the way they want, whether that’s paying for professional care or helping out a family member.
- Help keep pace with rising costs of LTC — Our rider allows Death Benefit Option B, so the LTC benefit can potentially grow with the policy’s cash value.
- Policy can’t lapse while on LTC claim — Clients don’t have to worry about paying premiums or their policy lapsing while they’re on claim.
- Clients can be reimbursed for expenses that occurred during the elimination period by taking 200% of HIPAA amount in the first year (100% of HIPAA is income-tax-free. The rest may be subject to ordinary income tax.)
- Clients can receive as much as 3% of their benefit each month.
- Flexible ownership options — While some companies limit who they’ll pay indemnity benefits to, we don’t. Under our rider we will pay benefits to an owner who is an individual, a business owner or a trust.
- If your clients don’t use the LTC benefit, it’s not lost. The cash value that would have been paid out as LTC benefits can be paid out as a life insurance benefit to beneficiaries.
Product highlights – flexible options
Your clients have the flexibility to tailor the rider to fit their potential long-term care needs.
Accelerate all or some of the policy’s death benefit, with death benefit option Acceleration percentages:
- A 20-100%. For Death Benefit Option A policies, the Maximum Total Benefit is equal to the current Long-Term Care Specified Amount on the date the Long-Term Care Services Rider claim is approved. The policyholder may select an Accelerated Benefit Percentage between 20% and 100%. Once selected, the Acceleration Percentage may not be changed.
- B 100%. For Death Benefit Option B, the Acceleration Percentage must be 100% and the Maximum Total Benefit is equal to the current Long-Term Care Specified Amount plus the Policy Account Value on the date the Long-Term Care Services Rider claim is approved.
Choose the monthly benefit percentage they’ll receive. The percentage your clients choose determines their monthly benefit amount. They can choose: 1%, 2% or 3%