Guest Post by Steve Knudson
Like many folks, you may be frustrated with all the complications and specifics as well as the underwriting difficulty in exploring Long Term Care or Chronic Illness care insurance. And then you find out there is no refund of all those premium paid if you die or cancel the LTC policy.
Earlier this summer of 2011, the Utah State Insurance Department approved a Long Term Care (LTC) policy that does just that. It is called MoneyGuard Reserve Plus issued by the Lincoln National Life Insurance Company. The concept is simple:
- Single deposit contract with a 100% full principle guaranteed refund of premium at any time.
- Long Term Care Pool of money available day 1 (no waiting period) for tax free refund of Home Care, assisted Living Care, or Full Facility Care, or even Hospice qualifies for the benefits.
- Income tax free death benefit to a named beneficiary that is larger than the premium deposit but minus claims paid.
For example, if a 56 year old female, deposited id="mce_marker"00,000 in the MG+, she would create an LTC pool of near $500,000 and a death benefit of $200,000 with no further payments required. In essence, the insurance company guarantees they will not keep her single deposit premium. Either it will be refunded at her asking, paid out in LTC expense reimbursement or double the deposit at her death.
At a time of interest rates on guaranteed principle accounts being near zero, here may be a way you can reposition some funds to get something for your money rather than almost nothing.
If you need further assistance in looking into this option, call my office and let’s see if this concept fits for you.