MassMutual CareChoice One

MassMutual CareChoice One

So What Makes The MassMutual CareChoice One Different Compared to Conventional Long Term Care Insurance?

With the long term care field rapidly changing, companies are being forced to produce new and improved plans to meet market demand. MassMutual CareChoice One is at the forefront of this shift. Since planning for the future is full of uncertainties, and with the average cost of long term care rising every year. We are seeing more and more companies shift towards Asset Based Long Term Care Policies. Which provide more affordable coverage to a larger percentage of clients.

Asset Based Long Term Care policies like MassMutual CareChoice One or  One America Asset Care are hybrid policies with several benefits over conventional plans.

The traditional LTC plans have caused some issues over the years. The main two being. No matter how long you have paid into the policy, the carrier reserves the right to raise your premiums at any time. 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 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?

With the MassMutual CareChoice One policy,  you are given pool of money which is used to pay for your long term care of a 48 month period. This money is paid out for services provided by a nursing home, assisted living, home health care or hospice. According to the National Association of Insurance Commissioners, 52% of Americans over 65 will need long term care. Actual statistics point to that number being closer to 70%.

MassMutual CareChoice One is a single premium life insurance policy, which means you cannot spread out your payments over multiple years as you may be able to with similar policies. 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.

How Can I Get More Information Or Apply For The MassMutual CareChoice One?

To get Started Contact Us