Securian Financial Group of St. Paul, MN, has added new premium payment options and enhanced benefits to SecureCare Universal Life, a permanent life insurance contract with long term care benefits.
Launched in 2017 as a single premium-only linked benefit product, the enhanced version of SecureCare, issued by Minnesota Life Insurance Company, allows customers to choose a single or multi-year premium schedule of five, seven, 10 or 15 years. The new product also pays benefits using a cash indemnity-style model with improved flexibility and liberalized limitations when accessing the benefits.
Designed to help aging Americans protect their assets from the climbing costs of long term care amidst rising premiums and uncertainty in the stand-alone long term care insurance market, SecureCare offers customers four guarantees:
- If they become chronically ill and need long term care, they will receive a tax-advantaged monthly cash benefit to help cover expenses.1
- If they die, their beneficiaries will receive a death benefit, even if they exhaust their entire long term care benefit.
- If they want their money back, they can receive a refund of their premium, subject to a vesting schedule.2
- If they stop paying premiums before the policy is paid in full, they will receive a reduced benefit based on what they paid into the policy.3
“SecureCare’s guarantees make it distinct from traditional long term care policies,” said Kimberly Anderson, who manages individual life insurance product research and consulting for Securian. “As a permanent life insurance policy, a benefit payout is certain, even if the client never needs long term care. And with SecureCare’s guaranteed premiums, regardless of how they choose to pay, clients never have to worry about their premiums going up—they are locked in upon purchase and will never increase.”
Other highlights of SecureCare include:
Cash Indemnity Benefits
Unlike some other hybrid life/long term care policies, SecureCare pays out a monthly cash indemnity benefit regardless of expenses incurred and without requiring proof of costs—allowing customers to skip the burdensome process of submitting receipts to receive a reimbursement of expenditures.
Coverage Customization and Inflation Protection
SecureCare allows clients to customize their long-term care coverage duration from two to seven years.4 They can also choose between four inflation protection options to help their benefits keep up with rising long term care costs.5
Multiple Care Options
SecureCare allows clients to choose how they receive care, which may include:
- Informal care provided in their home by a family member
- Respite care
- Nursing home care or memory care provided by professional staff
Clients have further freedom to use their benefits for long term care outside the United States,6 home modifications7 or training for family members to provide care.8
SecureCare is available to all Securian-approved distribution channels. Financial professionals interested in learning more can call Securian’s Life Sales Support Team at 1-888-900-1962.
For use in Delaware, District of Columbia, and states where this product is available under the Interstate Insurance Product Regulation Commission (IIPRC).
Notes:
- Upon meeting the policy’s eligibility requirements.
- Upon surrender, the policy owner will receive the surrender value proceeds. The surrender value proceeds may not equal the sum of premiums paid. Policies that are fully vested are eligible for a full return of all premiums paid.
- Multi-year premium customers only. The reduced paid-up nonforfeiture benefit purchases paid-up insurance in the event of premium lapse.
- Long term care benefits are provided through the Accelerated Long-Term Care Agreement and the Extension of Long-Term Care Agreement.
- The optional Long-Term Care Inflation Protection Agreement is available with 3 percent simple interest, 5 percent simple interest, 3 percent compound interest or 5 percent compound interest. If the Long-Term Care Inflation Protection Agreement is elected at time of policy application, you must take the maximum monthly long term care benefit payment upon eligibility for benefits in order for benefits to be payable.
- Benefits outside the United States, its territories or possessions allow the insured to receive 50 percent of his/her maximum monthly benefit provided the insured is receiving qualified long term care services from a U.S. licensed health care professional. If the insured returns to the United States, the non-United States monthly benefit limit will no longer apply.
- Home modification benefit allows the insured to pay for modifications to his/her home, enabling the insured to remain in his/her home longer. This benefit can be triggered prior to the elimination period. The maximum benefit is $5,000.
- The caregiver training benefit can be used to pay for training of a friend or family member to provide care to the insured. This benefit can be triggered prior to the elimination period. The maximum benefit is $1,000.
SecureCare may not be available in all states. Product features, including limitations and exclusions, may vary by state.
This is a general communication for informational and educational purposes. The materials and the information are not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. If you are seeking investment advice or recommendations, please contact your financial professional.
