Mutual of Omaha Long Term Care Insurance

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.

Mutual of Omaha (A+, AM Best)

S&P Global A+

How Mutual of Omaha Long Term Care Insurance Policy Works:

When you find yourself in need of care, a licensed certified healthcare practitioner must first deem you chronically ill and submit a plan of care prescribing long-term care services. Once this plan has been submitted, you must go through an elimination period, often consisting of 90 days. After this period, your Mutual of Omaha long term care policy will begin to reimburse you for expenses billed by the care facility. You have the option of a traditional “reimbursement” or a “cash benefit” as a way of receiving compensation. The cash benefit will only be 30% maximum of your monthly benefit. As long as you are receiving care, your policy will continue to pay out until the policy has been depleted.

What are some Benefits built into Mutual of Omaha Long Term Care Policy’s?

Mutual of Omaha Long Term Care Policies offer a cash benefit as an alternative to reimbursement for the actual costs of care. This allows you the option to elect a cash percentage of the policy’s benefit for home health care, which gives you more flexibility in the use of the benefit. You can use cash to pay for services that support your own personal plan of care, like building a ramp inside your home, contributing to your savings, or even paying a relative to spend time helping you. While this seems beneficial, it does not compare to Securian SecureCare and NationWide CareMatters II in terms of cash indemnity, which makes up 100% of the monthly benefit.

Mutual of Omaha Long Term Care Policies also include a Waiver of Premium Rider. This built-in benefit means you will not have to pay premiums on your policy while you are receiving long term care services. Another feature is Care Coordination, which allows you access to the services of a care coordinator. This allows licensed healthcare professionals to assess your needs, develop an individualized plan of care and help you arrange for care services. There is also a provision called the Alternative Care, since there may be standard practice in the future, your policy may pay benefits for this type of care when recommended by a healthcare practitioner.

Mutual of Omaha Long Term Care Policy Examples:

Male Age 55

This Policy will immediately provide $6,000 ($200/day) in long term care coverage for 36 months, after a 90 day elimination period. In addition to this coverage I have also added a 20 year 3% compound inflation rider, which will grow your benefit pool over the decades to keep pace with increasing cost of long term care. This provides additional protection to keep you, your family, and your assets safe.

Mutual of Omaha long term care policies also offer Guaranteed Premium, this one totalling $1,750.86.

mutual of omaha long term care

mutual of omaha long term care

If you would like to see personalized proposals and speak with Cliff Marshall. Contact Us Here.

Joint(Spouse) Example

Male and Female Joint Policy, Both 50 Years Old. $6,000 ($200/day) a month each for 36 months, 90 day elimination period.

The total premium when you and your spouse apply together is $280.76 per month for an immediate $216,000 of long term care insurance coverage pool each.

mutual of omaha long term care

mutual of omaha long term care

If you would like to see personalized proposals and speak with Cliff Marshall. Contact Us Here.

What makes Mutual of Omaha Long Term Care different from other Hybrid Long Term Care Insurance?

A Mutual of Omaha long term care policy grants you the ability to receive up to 30% of the benefit amount as monthly cash payment. This provides you with cash even if you do not need a caregiver at the moment. For example, if your monthly benefit period is $6,000, you can receive up to $1,800 a month, no questions asked.

Calendar Days Eliminations Period Elimination Period: With the Secure Solution plan, you can choose either a 90 day, 180 day, or 365 day elimination period.

With the Custom Solution, it gives you more options. There is a 0 day, 30 day, 60 day, 90 day, 180 day, or 365 day elimination period.

How Does Mutual of Omaha Long Term Care Policy Work?

  1. Mutual of Omaha Long Term Care Benefit Period:
  2. Mutual of Omaha Long Term Care Elimination Period:
  3. Mutual of Omaha Long Term Care Inflation protection:
  4. Mutual of Omaha Long Term Care Cash Alternative Benefit:
  5. Mutual of Omaha Long Term Care Qualifying illness:
  6. Mutual of Omaha Long Term Care Additional Features/Options:

If you would like to talk with us about which policy is best tailored to your needs. Contact Us Here.

The Benefit Period is the total amount of time in which benefits will be paid to you. The Mutual of Omaha Secure Solution plan you can choose a benefit period of two, three, four, or five years.

Mutual of Omaha Long Term Care Custom Solution plan is based on a total dollar amount, also known as a “pool of benefits”. This can be anywhere from $50,000 to $500,000 dollars in $500 increments.

The Policy Limit and Maximum Monthly Benefit Amount is the total cost that your plan will cover, both within one month and the total amount over your set benefit period.

The Elimination Period is the number of days from the onset of your reported illness before your policy would start to pay the benefits.

Options for elimination periods are 90, 180, or 365 days. A simple visit with a healthcare practitioner is needed to deem you chronically ill and in need of care.

The longer the elimination period, the lower your monthly premium is. For example, the Secure Solution policy outlines a 90 day elimination period, which has a slightly higher monthly premium than a plan with a longer elimination period, but it also means that your coverage would start sooner if you needed to file a claim.

The Inflation Protection preserves your policy from the rising costs of care in the future. It increases the monthly benefit each year by the amount of inflation protection you choose.

Lower inflation options mean lower premiums, while higher inflation protection means higher premiums. Higher inflation protection also increases the monthly benefit amount each year.

With Mutual of Omaha Long Term Care Secure Solution, you have options for a compounding rate of 3%, 4%, or 5%. Additional options include a compounding rate or 3% and 5% with the compounding feature stopping after 20 years.

With this example, the Secure Solutions policy has 3% compound inflation protection with a 20 year cap.

With an initial monthly benefit of $6,000, after 20 years of holding this policy, you would have a maximum monthly benefit of $10,521 and a policy limit of $378,760, rather than the $216,000 policy limit and $6,000 monthly benefit that you started out with. This is because the inflation protection accounts for rising healthcare costs, so your benefits increase 3% every year that you own the policy.

With the Mutual of Omaha Long Term Care Custom Solution plan, you can get a lifetime compounding benefit from 1% to 5% in .25% increments or you can get the same 1% to 5% with .25% increments with duration of 10, 15 and 20 years.

The Cash Alternative Benefit Provisions on Mutual of Omaha Long Term Care policy allows you the ability to get up to 30% of the benefit amount in a monthly cash payment. This provides you cash, even if you do not need a caregiver at the moment. For example, let’s say your monthly benefit amount is $6,000, you can receive up to $1,800 a month. The maximum amount is $2,400 per month.

With the Mutual of Omaha Long Term Care Custom Solution plan, the maximum is 40%, not to exceed $2,400 per month.

A nursing home is covered up to 100%, and an assisted living facility or home healthcare can be tailored to cover 50%, 75%, or 100% of the maximum monthly benefit.

Additionally, respite care can last up to 30 days per calendar year with no elimination period.

With Custom Solutions or Secure Solutions, you can choose between all of these options to create a plan that is custom-made for you and your situation.

The Qualifying Illness of Mutual of Omaha Long Term Care Policies has guidelines for activities of Daily Living as well as instrumental activities of daily living.

Mutual of Omaha long term care

Mutual of Omaha long term care

Some Additional Features & Riders:

There are many additional options that you can choose to add to your Mutual of Omaha Long Term Care policy. This may include:

  1. Waiver of Premium for Home Health Care: This waiver reduces the elimination period for any home health care claim to 0 days.
  2. Shared Care: If one of the insureds’ benefits are exhausted, they can access their partners benefit pool.
  3. Nonforfeiture Benefit – Shortened Benefit Period: If at some point down the road you are going to terminate the plan, this allows for a reduced lifetime maximum benefit in lieu of termination.
  4. Return of Premium at Death: Three times the initial maximum monthly benefit (less claims paid) Issue Ages: The issue ages are 30 to 79 for both Mutual of Omaha Long Term Care plans.

Mutual of Omaha Long Term Care Insurance Needs

In the past few decades, healthcare technology has improved drastically, extending people’s lives further than ever imagined. These same technologies are now enabling people to survive for months or even years with a debilitating illness.

Now the obvious question to these facts is “Who pays for all this?” Will it be the government? I think we all know the answer is NO. Will it be Medicaid? Generally, Medicaid only kicks in when your assets are depleted below $2,000 (not including your car or home). The only correct answer is to take the initiative and purchase a long term care insurance plan that fits your needs and that includes an asset based plan or a traditional long term care plan offered by Mutual of Omaha.

While life and disability insurance policies are still very necessary, the odds of needing long term care insurance for an extended period of time has greatly increased.

Purchasing a long term care policy is not only strategic, it shows your desire to invest in yourself and the quality of your health care in the future, in addition to providing a safeguard to your assets, relationships, and loved ones.

If you are interested in getting set up with a long-term care insurance policy, do not hesitate to contact us at 512-637-6353.

Why Should I Purchase Long Term Care Insurance?

In a survey of long-term care policyholders, we found that some of the most common reasons people purchased these policies were to protect their assets, to have security or peace of mind, and because they didn’t want to be a financial burden on their families. By far the most common life event that leads people to purchase long-term care insurance is planning for retirement, followed by actual retirement and a loved one needing long-term care. However, it is a very smart idea to begin thinking about taking this step even earlier.

The most important thing to know about long-term care insurance is that it is cheaper to buy it earlier rather than later because the cost is based on age– every year you wait, the cost goes up. Along with the price of insurance increasing with age, your health is more likely to worsen or change, and once that happens, buying long-term care insurance may not be an option. Long term care insurance will give you the peace of mind you need, especially when you are thinking about your family or considering going into retirement. It gives you the ability to live your life without worrying about a sudden health issue ruining your finances.

My Thoughts On Where This Fits Best

Mutual of Omaha has been around for a very long time. Most of us can remember their TV series, Mutual of Omaha’s Wild Kingdom. They are a very good company with good ratings and a good diversification of products that include long term care, final expense plans, annuities, life insurance, disability insurance, medicare supplement plans and specialty health care products. They are one of the few carriers that still offer a traditional long term care plan and continue to do a good job of managing premiums.

If the resources are not there to purchase an asset based plan, the Mutual of Omaha is a great alternative to help keep the cost down. Give us a call with any questions about this plan or any or the other products we represent.

Feel Free to Contact Us Here for Personalized Proposals

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.