These could include long-term care riders
, accelerated benefit riders or waiver of premium riders.
One of the most competitive and flexible long-term care riders
in the industry, AXA's Long-Term Care ServicesSM Rider requires no receipts; has features that may help their employees keep pace with rising long-term care costs; doesn't allow the policy to lapse while claims are being paid; and allows the employee's condition to be temporary.
Market pressures and resulting innovation led to the development of hybrid life products, or life insurance policies with CI riders or long-term care riders
. (Photo: iStock)
Proper use of long-term care riders
may overcome this resistance.
1, 2010, funds used for qualified LTC premiums no longer create a taxable event for policyholders with any of the four forms of combination products: life policies with an acceleration of the death benefit, those with chronic illness riders or long-term care riders
, life policies with embedded LTC riders with an extension of benefit rider, and annuity/long-term care products.
Particularly popular are chronic illness riders and long-term care riders
, which accelerate the payment of death benefits as a living benefit when certain triggers in the policy are met, he says.
1 objection is the premium for life insurance with long-term care riders
. Unlike a long-term care policy, where there may be a spousal discount involved for a husband and wife, the life insurance contracts are individual contracts, so the client is paying the full premium without discount.
Risk distribution was found because that risk would be spread among the many annuity contracts that would contain the long-term care riders
. This means that the insurance company issuing the annuities was betting on the fact that some of the contracts sold would incur long-term care expenses, while others would not.
"We're seeing more clients looking at single-premium Universal Life options now," he says, attracted by return-of-premium and long-term care riders
, plus other features that provide flexibility and access to contract dollars.
The same is true for certain life insurance policies, particularly those with long-term care riders
For life insurance, it's no longer just a matter of the risk of dying too soon, but also living too long, which is why a number of insurers have introduced chronic illness and long-term care riders
. These riders help maintain financial security for individuals faced with a chronic illness," said Mark Hug, executive vice president of product and marketing for Prudential Individual Life Insurance.
Much like the indemnity feature of some of the long-term care riders
, the funds can be used for any purpose, whether to cover medical costs, pay for experimental treatment or to spend on their loved ones.