Securian SecureCare Review  

Minnosota Life Ratings:

Long Term Care Insurance Quote

By: Cliff Marshall

A+ (Superior)  A.M Best

Aa3 (Excellent) Moody’s

AA (Very Strong) Fitch

Securian Financial  is now offering one of the most competitive Hybrid Asset Based Long Term Care policies on the market.

Securian SecureCare is an Asset Based Long Term Care Policy, which will be discussed in depth throughout this post.

Below we will give a quick example, followed by further in-depth analysis of the following five points. After that we will go into the technical, further examples of and finally an Asset Based Long Term Care comparison.

Quick overview of some of SecureCare’s benefits:

  1. Guaranteed Cash Indemnity LTC benefit: When the need arises, you will receive Tax Free benefits for long term care needs. This money can be used as you see fit and at your discretion.
  2. Tax Deductibility: Securian SecureCare can potentially have tax incentives. Qualified long term care premiums are qualified as a medical expense under IRA Section 7702B and 213.
  3. Guaranteed Death Benefit: If you pass away and have not used all of your benefits then your beneficiaries will receive an income tax free death benefit.
  4. Cash Back Liquidity: If at some point you no longer need or want this coverage you can surrender the policy at any time and in most cases receive all (if past the premium pay period) of your premiums back.
  5. Guaranteed Premiums: Securian SecureCare has guaranteed premiums and benefits, not subject to change unlike conventional long term care. These premiums can be funded by ongoing premiums, a single payment plan and you can use existing life insurance cash values or non-qualified money that is currently in a bank or brokerage accounts.

If you would like to see personalized proposals or ask us any questions feel free to Contact Us Here.

How does Securian SecureCare Work?

SecureCare combines the benefits of long term care protection, with the guarantees of life insurance.

Consider this example:

Female w/ Couple’s 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 per 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:

Securian SecureCare

Securian SecureCare

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

Securian SecureCare

Securian SecureCare

As we can see, Securian SecureCare offers a total of $242,740 day one long term care benefit. At age 80, there is a $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% simple or compounding inflation protection option.

So what makes Securian SecureCare Unique? Cash Indemnity

The majority of long term care policies on the market today are “reimbursement policies”. This means you are required to pay for your care out of pocket initially and then submit the charges  to get reimbursed.

Securian SecureCare is different — it is a cash indemnity plan which simply means that if you qualify and have met the elimination period then they start to send you the monthly amount that you can use however you want to.

So long as you are determined by a physician to be chronically ill, you will have 100% access to the monthly benefit amount. That money can be spent on a number of things such as Assisted Living, Hospice, Nursing Home Care and Adult Daycare.

This flexibility gives you control of your own money, allowing you to use it how you see fit and most positively impact your personal situation.

How do Securian SecureCare Tax Benefits work?

The following is a brief overview. For specific details, scroll to the bottom of the page.

The Health Insurance Portability and Accountability Act (HIPAA) outlines requirements for qualified long term care 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. However, the base life premiums of the policy are not.

Securian SecureCare’s 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.

Securian SecureCare

Securian SecureCare

Securian SecureCare

Securian SecureCare

If you would like to see personalized proposals or ask us any questions feel free to Contact Us Here.

What about Securian SecureCare Death Benefit?

Based on the example above, using a $100,000 single premium, if the client passes away without using the benefits, the beneficiary would be paid $167,023 tax free. If the client depleted the entire benefit over 6 years during a long term care event, the beneficiary would still recieve $10,000 income tax free.

Securian SecureCare Cash Back Liquidity

Securian SecureCare is a liquid asset. At any time the policy can be surrendered for the designated cash value. In most cases the surrender value is equal to total premiums paid.

Securian SecureCare Guaranteed Premiums:

Unlike conventional long term care policies, Securian SecureCare offers guaranteed premiums and guaranteed benefits.

Securian SecureCare funding options include:

  1. Non-Qualified funds: Annuities and Mutual Funds that could be surrendered to put into the plan.
  2. Life Insurance: Whole life, Universal Life, and Variable Universal Life. Values can be transferred in via a 1035 exchange.
  3. Cash Equivalents: Savings Account, Money Market or cash on hand in a bank or brokerage account.

What are some policy options for 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 tailor this to fit your unique situation.

Contact Us Here to set up a screen share online and over the phone. We can show you many proposals utilizing the following features to see what works best for you.

Securian SecureCare Benefit period: 2 to 7 Years

The benefit period is a combination of two separate components.

  1. Acceleration for Long Term Care Agreement: 2 to 3 years. This allows you to receive a monthly acceleration of your life insurance death benefits for long term care needs.
  2. Extension of Long Term Care Benefits Agreement: This option allows you to additional 2 or 4 year increments, extending 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: 

  1. Single PayOne Lump Sum Payment
  2. Multi PayGuarantee Payment Options in 5, 7, 10 or 15 Year.

Securian SecureCare Elimination Period: 90 Days for Long Term Care, 0 days for Home Modifications and Caregiver Training. You will receive $5,000 for home modification and $1,000 for caregiver training and this is in addition to the monthly benefit.

Guaranteed Residual Death Benefit Rider:

This allows you to have a $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.

3% Simple

3% Compound

5% Simple

5% Compound

Securian SecureCare Return of Premium: Year

1: 80%

2: 84%

3: 88%

4: 92%

5: 96%

6: 100%

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

If you would like to see personalized proposals or ask us any questions feel free to Contact Us Here.

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.