Americo Financial Life and Annuity Insurance Company has introduced an unusual product: a single-premium long-term care insurance (LTCI) policy aimed at people who already need long-term care (LTC) services.
Americo has designed the new Reliable Living Plan policy to provide a monthly cash indemnity benefit as long as an eligible insured needs qualified LTC services.
To be eligible to have the policy, and to get the benefits, policyholder must be age 65 or older. The policyholder also must already need substantial assistance with at least two “activities of daily living,” or need substantial supervision due to dementia or some other form of cognitive impairment.
The kinds of LTC services that count as “qualified LTC services” include home health care, adult day care, assisted living care and nursing home care.
The “single-premium” provision means that the purchaser needs to pay the full premium at the time the policy is purchased.
Legacy Marketing Group
Legacy Marketing Group has exclusive distribution rights for the new LTCI product.
The Petaluma, California-based distributor says in an announcement of the product launch that the policy has no pre-existing health exclusions or maximum age restrictions.
Consumers can buy the policies to pay for LTC services for relatives as well as to pay for services for themselves, and they can pay for coverage with 1035 transfers from non-qualified annuities or from cash-value life insurance, Legacy says.
If a consumer buys a policy to protect a relative, the policy benefits will be paid to the insured relative.
Preston Pitts, Legacy’s president, said in a statement that the policy can help address part of America’s LTC crisis.