If you’re interested in an Hybrid Asset Based Long Term Care Policy, For Fall-Winter 2020 we currently recommend NationWide CareMatters II or Securian SecureCare. Both are Cash Indemnity Plans, which pay you a monthly cash stipend that you can spend as you see fit. You can use this money on Care, building a ramp into your home, paying a relative or friend to take care of you, or even save it for a later date.
For a Joint (Spouse) Policy, One America Asset Care has a great product. Particularly if one person is in better health than their partner. In Addition, you can also use qualified funds (IRA, Pension, etc.) to fund this policy. One America Asset Care is the only product on the market to offer Unlimited LTC care option.
(Disclaimer: Our services to you are free, we are compensated by the carrier for our services)
If you have any questions or would like to see a personalized proposal feel free to call or email Cliff Marshall Here.
MassMutual CareChoice One
Author Cliff Marshall
Mass Mutual Long Term Care Insurance Review
Policy Type: Comprehensive Daily Reimbursement
Coverage Type: Guaranteed Renewable; Premiums are not guaranteed and subject to increases
Daily Benefit Amount: $100 – $400.
Benefit Periods: 2 years, 3 years, 4 years, 5 years and 6 years
Inflation Protection: 3% compound and 5% compound
Elimination Period: 90 Service days; a minimum of 1 service day of home care in a calendar week will eliminate 7 days from the elimination period.
Payment Structure: Premium is paid for the life of the policy.
What Makes The MassMutual CareChoice One Different From Conventional Long Term Care?
Asset Based Long Term Care policies like MassMutual CareChoice One, Securian SecureCare, NationWide CareMatters II are hybrid policies with different benefits over conventional plans.
The traditional LTC plans have caused some issues over the years. The main two being:
1) No matter how long you have paid into the policy, the carrier reserves the right to raise your premiums at any time.
2) Two, even if you have paid into the policy for 10, 15, 20 years and never use the coverage, you do not receive any of the money back.
So while the proposed premiums might be lower to start with, those rates are not guaranteed. Insurance companies will give you the option to reduce your coverage to keep premiums lower. But as we all know long term care facilities prices are rising, not falling.
As time went on insurance companies began to recognized these short comings, and so started to engineer new plans. These new asset based policies allow you to take the guess work out of the premiums, since they are guaranteed. Giving you the option to choose between a single pay, 10 year pay, 20 year pay, etc..
How Are Massmutual CareChoice One benefits paid out?
MassMutual CareChoice One is a single premium Life Insurance policy, which means you cannot spread out your payments over multiple years as you can with One America Asset Care. In addition to the LTC benefit pool, this policy also has a death benefit. So if you never used the money for long term care, the death benefit will be transferred over to your beneficary. Repaying the money you put in and some.
Since the MassMutual CareChoice One is a single premium whole life policy, issued by a mutual company, it is also eligible to receive dividends. The dividends can also extend your benefits pool over the original 48 months.
What is an example MassMutual CareChoice One?
For example lets say you are a forward-thinking 55 year old male and who makes a $50,000 single premium deposit into the policy. With the MassMutual CareChoice One plan your initial death benefit (should you die that year) would be $89,420. Now let’s assume you need need long term care, which would have a maximum monthly benefit of $3,726 for 48 months. These numbers are guaranteed, With the potential
However, based on the current dividend scale, MassMutual’s CareChoice One plans death benefit could increase to $106,682 in 10 years. This plan could also see your benefit period rise to 51 months if you require long term care. Under the guaranteed or non-guaranteed (current dividend scale) policy, you would receive a policy surrender value if you cancel your policy before receiving any benefits, which would partially or fully cover the initial cost of the policy.
The MassMutual CareChoice One LTCI Rider is federally qualified long term care insurance, which means that most long term care benefits are tax free, unless you have received payments from other long term care insurance for the same care services. The death benefit will usually also be tax free for your beneficiaries.
What are the Eligibility Requirements MassMutuals CareChoice One LTCI Rider Benefits?
When does the beneficiary under the policy become eligible to receive monthly long term care benefits? The monthly benefits will be paid after MassMutual verifies that:
1.) You have been deemed “chronically ill” within the previous 12 months
2.) You received “covered services” which are long term care services provided by a licensed health care facility
3.) The LTCI Rider was in effect when these services were provided to the you
4.) The 90 Day Elimination Period (during which time you were deemed chronically ill and were receiving long term care services) has passed
5.) The required information was submitted to MassMutual regarding the claim requesting your monthly benefits be paid
6.) The claim was not subject to any exclusions
Once these criteria have been verified by MassMutual, the monthly benefit will be paid.
If you are interested in a hybrid asset based long term care, then the Mass Mutual Care Choice One may be a good option. Most people think “I am to young” to buy long term care coverage, but with the new asset based long term care plans you are never to young and in fact the younger you are the better the value is.
The minimum premium payment is $25,000 and depending on your age it will take more to provide benefits that would cover potential long term care costs.
Remember, this is not so much as spending money because of the cash values that are in this plan from day one but really moving money from pocket A to pocket B while at the same time providing benefits to be there if long term care is needed and to also protect your estate.
If you decided one of these plans are for you then we would start the application process and a MassMutual home office person would conduct a phone interview lasting 20 to 40 minutes about your personal history before finalizing your application.
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.