Brighthouse SmartCare Review
By: Cliff Marshall
Brighthouse SmartCare is a hybrid long term care policy that provides protection through two different means. Like other hybrid long term care policies it works on a Index Universal Life Insurance chassis, with specific emphasis on Long Term Care Insurance Rider and Extension of Benefits Rider.
If your Interested in a Individual Policy, Securian SecureCare is best for Cash Building and NationWide CareMatters II is best for maxing out your LTC benefits. These two are currently the most competitive Asset based long term care plans as of Summer/Fall 2020.
For a Joint (Spouse) Policy One America Asset Care has a great product. If you have any questions or would like to see a Specific Proposal you can Call or Email Cliff Marshall Here.
Like other Hybrid Plans Brighthouse SmartCare Provides:
- Guaranteed Long Term Care Payments
- Guaranteed Death Benefit
- Guaranteed Premiums
Brighthouse SmartCare achieves this by paying out a portion of the life insurances death benefit as tax free long term care payment to you. So when you are in need of monthly reimbursement for long term care, the policy begins to pay out the death benefit.
You also have the option of linking your policy to an Index or Indices. Which can grow your LTC benefit pool over time, while also providing protection during market downturns.
Brighthouse SmartCare Policy Example
Single Premium Deposit: $100,000
Total LTC Benefit Period: 6 Years
Face Ammount $72,902.13
Initial Death Benefit % 156,3000
We will go over both the Initial Assumed Rates, as well as the Guaranteed Numbers.
Full Proposal Here: Brighthouse SmartCare Proposal.
Immediately Brighthouse SmartCare Leverages $100,000 Initial Premium Deposit is leveraged into $235,540 in LTC benefits. By Year 5 the monthly benefit amount of $3,508 a year. This begins to grow at the 6% S&P cap rate and the LTC monthly Benefit and Cash Surrender Value Continue to Compound. By Year 15 the funds have grown to a stagering $5,714 per month in benefits.
Initial Assumed Rates(Projected)
How Brighthouse SmartCare Works.
Step 1: You Choose Your Long Term Care Coverage Option:
- Index Long Term Care: Your death benefit and long term care pool have the potential to increase with market gains up to the maximum annual growth rate. On the downside protection, your policy will never decrease past the original amount. You can choose between several options including the S&aP 500 Index, Russell 2000 Index, or MSCI EAFE index(international).
- Fixed Growth LTC: Benefits amounts earn 5% compound growth annually. This provides a significant hedge against inflation.
- Level Long LTC: Benefit amounts remain the same over time.
Step 2: Choose Your Long term Care Benefit Period.
- Long Term Care Accelerated Death Benefit Rider. Allows you to access up to 95% of your death benefits for qualifying long term care excess, it pays tax free benefits for the first 2 years of claims. Benefits reduced your Policy’s Death Benefit dollar-for-dollar. Rider Charge rates are level and guaranteed for the life of the policy.
- Long Term Care Extension Of Benefits Rider. Once the two years above are used, not including Index increased benefits(which can extend the coverage much longer). The EOBR These provide an additional 2 or 4 more years of coverage once your LTC benefits have been used. Resulting in a combined payout period of 4 or 6 years. Payments from the EOBR do not affect policy values. Rider charge rates are guaranteed for the life of the policy.
Step 3 Choose Your Premium Schedule:
- You can choose between Single Premium Deposit or 2, 3, 4, 5 years.
Additional Details about Brighthouse SmartCare
Additional Policy Features and Benefits
- Lapse Prevention Provision is a feature guarantees that your policy will never lapse as long as the required premiums are paid.
- Terminal Illness Benefit: If your physician diagnoses you with a terminal illness and your only expected to live less than a year. Your death benefit will automatically pay 50%.
- Cash Value access: You can take a loan against your policy at any time
- Surrender value is available for the full amount of cash in the policy.
If you have anymore questions or would like personalized proposals feel free to contact Cliff Marshall.
If you would like to learn more about other long term care options, here are some of my other product reviews Securian SecureCare, Lincoln MoneyGuard III, NationWide CareMatters II, Brighthouse SmartCare, MassMutual CareChoice One, One America Asset Care, Mutual of Omaha, American General Quality of Life.