A new universal life insurance policy with a long-term care rider was announced on Apr. 3, offering comprehensive coverage for extended medical needs as individuals age. The policy aims to help cover costs associated with nursing home care, assisted living facilities, and home health care services.
The importance of this development lies in the growing need for financial support during periods of long-term illness or disability, which can otherwise deplete personal savings and place a burden on families.
The monthly benefit available through the policy is tied to the death benefit amount. Policyholders can receive up to 4% of their death benefit per month for nursing facility or assisted living care, and up to 2% per month for home health care or adult day care. For example, a $100,000 death benefit would provide $4,000 monthly for nursing home expenses or $2,000 each month for home-based services.
According to the announcement, “this long-term care coverage does not expire.” Additional features include simplified issue enrollment—no medical exams or blood work are required—and guaranteed level premiums designed to keep rates affordable. The dual coverage aspect allows beneficiaries to receive a portion of the death benefit even after long-term care benefits have been used.
The policy also includes portability so that coverage continues if the insured moves to another state. These features aim to provide both flexibility and security as people plan for future healthcare needs.
