Securian SecureCare Review
Minnosota Life Ratings:
A+ (Superior) A.M Best
Aa3 (Excellent) Moody’s
AA (Very Strong) Fitch
Minnesota Life, a subsidiary of Securian Financial, is offering one of the most competitive Hybrid Long Term Care policies on the market.
Securian SecureCare is a Hybrid Long Term Care Policy, which consists of a few important parts:
Below we will give a quick example, followed by further in depth analysis of 1-5 listed here. After that we will go into the technicals, further examples, and finally a Hybrid long term care comparison.
- Guaranteed Cash Indemnity LTC benefit: When the need arises you will receive Tax Free Cash for long term care needs. This money can be used and spent as you see fit.
- Tax Deductibility: Securian Secure can potentially have tax incentives. Qualified long term care premiums are qualified as a medical expense under IRA Section 7702B and 213.
- Guaranteed Death Benefit: If you pass away, your beneficiaries will receive Tax Free Death Benefit.
- Cash back Liquidity: You can surrender the policy at any time and receive most, all, or more of your initial deposit..
- Guaranteed Premiums: Locked in Rates, not subject to change. Unlike conventional long term care. These premium can be funded by Qualified funds, Nonqualified Funds, Life insurance, Tangible Assets, and Cash Equivalents.
How does Securian Secure Care Work?
SecureCare combines the benefits of long term care protection, with the guarantees of life insurance.
Consider this example:
Female w/ Couples discount.
Single Premium : 100,000
Long Term Care Duration: 6 Years
Long Term Care Inflation Protection Agreement: 0%
Securian SecureCare LTC benefits: From day 1 the client would have a total of $501,070 available for long term care use. That amounts to $6,959 a month in Cash.
Yes, you read that correctly over 5x the leverage on the original premium input.
Here is a chart that shows more examples:
1) What makes Securian SecureCare So Unique? Cash Indemnity.
The majority of long term care policies on the market today are called reimbursement policies. This means you are required to submit your care facilities recipes, in order to be reimbursed.
However Securian SecureCare is different, it simply pays you cash, and as we all know. Cash is King. This provides you with significant flexibility, and allows you to spend your money as you see fit.
So long as you are determined to be chronically ill, you will have 100% access to the monthly stipend. This money can be spent on a number of things such as Assisted Living, Hospice, Home Modifications, Family Caregiver Training, Nursing Home Care, and Adult DayCare.
That Flexibility allows you to control where your money goes, and how it can be most effectively applied to positively impact both your situation, long term care experience, and family relations.
2) How does Securian SecureCare Tax Benefits work?
This will be a brief overview. A more complex and specific tax details will be at the bottom of the page.
So Under the Health Insurance Portability and Accountability Act, (HIPAA) Outlined requirements for qualified long term care LTC policies. Some of the benefits and payments of Hybrid policies are given the same tax treatment as individual long term care policies.
Parts of the premium are considered a medical expense under IRC section 7702B and 213, the premiums of the base of the policy are not.
Securians SecureCare acceleration for long term care agreement, the extension of long term care benefits agreement, and the long term care inflation protection agreement are generally considered payments towards a qualified long term care contractor. These benefits are calculated and noted both within a proposal and the data pages of a policy.
Always consult your CPA about tax deductibility.
3) What about Securian SecureCare Death Benefit?
Based on the example above for $100,000 single premium the client passes away the following week without using the benefits, the beneficiary would be paid $167,023 tax free. If the client depleted the entire benefit pull over 6 years LTC event, the beneficiary would still recieve $10,000 tax free.
4) Securian SecureCare Cash Back Liquidity
Securian SecureCare is a liquid asset. At any time the policy can be surrendered for the designated cash value.
5) Securian SecureCare Guaranteed Premiums:
Unlike conventional long term care policies. SecureCare offers guaranteed premiums and guaranteed benefits.
Securian SecureCare Fundings options
- Qualified funds: 401(k) 403(b)
- Nonqualified funds: Annuities, stocks, bonds, mutual funds, REITs
- Life Insurance: Whole life, Universal Life, and Variable Universal Life.
- Tangible assets: Real Estate, Boat, Car
- Cash Equivalents: Savings Account, Money Market, Treasury Bill
What are some policy options for policy holders of Securian SecureCare?
As with most other long term care insurance policies, you determine a monthly benefit amount, length of benefit, and inflation rider option. We at long term care insurance quote, will taylor this to fit your unique situation. Below I’II will break down the parts in bold.
Contact Us Here, we can set up a screen share online and over the phone, to run the proposals in a multitude of ways to see which works best for you.
Securian SecureCare Benefit period: 2-7 Years
This is a combination of two separate components
- Acceleration for Long Term Care Agreement: 2-3 years . Which allows you to receive a monthly acceleration of your life Insurance death benefits for long term care needs.
- Extension of LTC Benefits Agreement: This option allows for additional 2 or 4 year increments. Which will extend your total benefits to a maximum of 7 years. Your benefit period could be longer should you take a monthly amount less than the maximum.
Securian SecureCare Payment Options:
- Single Pay–One Lump Sum Payment
- Multi Pay–Guarantee Payment Options in 5,7,10, or 15 Year.
Securian SecureCare Elimination Period: 90 Days for Long Term Care, 0 for Home Modifications and Caregiver Training.
Guaranteed Residual Death Benefit Rider:
This allows you to have $10,000 payout or 10% of the base face amount, whichever is less.
Inflation Protection Options:
Securian SecureCare allows you to select an inflation protection option, which will protect you from the rising costs of care.
Securian SecureCare Return of Premium: Year
Minnesota Life Securian Financial Rating:
A+ (Superior) from A.M. Best
AA (Very Strong) from Fitch
Aa3(Excellent) From Moody’s
A+ (Strong) from Standard & Poor’s
Another Securian SecureCare Example:
Joint: Couple Discount
Single Premium : 100,000
Long Term Care Duration: 5 Years
Long Term Care Inflation Protection Agreement: 3% Compound
As we can see on day one Securian SecureCare offers a total of $242,740 day one long term care benefit. At Age 80 the individual is looking at $438,415.08 in long term care benefits. Securian SecureCare offers you the option to hedge against the rising cost of care with a 3% inflation protection.
If you would like to see a personalized proposals or ask us any questions feel free to Contact Us Here.