Featured National Marketing Director: Mike Anderson
The most important benefit in a Long Term Care policy is Mutual of Omaha Custom Solution’s inflation option with guaranteed buy-up.
The cost of long-term care services is likely to be higher years down the road when the insured needs care. Utilizing the 3% option – by far the most popular – means that a starting monthly benefit of $4,500 – the most common monthly benefit choice we see on applications – will double in 24 years.
The rider automatically increases the Monthly Benefit and your remaining Lifetime Maximum by the percentage the insured selects; the increase is effective on each anniversary of your Policy and Rider, either for the life of the policy or for a limited period of time
Mutual of Omaha took significant time in pulling together an inflation portfolio that combines price-point sensitivity with the ability to have meaningful benefit amounts when they’re needed. The portfolio includes ¼ point increments from 1 % to 5% and Capped Inflation options that run for 10, 15 or 20 years.
The move to a 20-year cap from 3% Lifetime Compound saves about 15%; the move from 3% to 2% Lifetime Inflation results in an 18% difference.
The buy-up option gives the client the opportunity to ensure that their benefits keep pace with the cost of care as it increases but at the same time allowing the agent to move the starting premium to a price point where affordability lives.
As financial circumstances change the client is guaranteed – for the first 20 years they own the policy or until they reach age 75 — the right to purchase more inflation without evidence of insurability. Even if they’ve selected a capped inflation option.
The premium for the policy is based on the insured’s age at the time of the buy up; however, actual premium will include a premium credit based on type of coverage and how long the policy
has been in force.