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Mutual of Omaha Adds Medicare Drug Plans and an LTC Rider

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Mutual of Omaha is introducing two products of interests to financial professionals who work with retirees and near retirees.

One of the products is a long-term care rider that can be sold with the company’s Income Advantage and Life Protection Advantage Indexed Universal Life policy.

Another is a new family of Medicare Part D prescription drug plans.

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The Omaha, Nebraska-based carrier is offering the LTC rider through its United of Omaha affiliate.

The company is offering the Medicare Part D plans through its Omaha Health Insurance Company affiliate.

The LTC Rider

The rider gives purchasers of United of Omaha IUL policies the ability to use a portion of the policy death benefit early to pay long-term care (LTC) expenses.

A holder can use the rider to pay for nursing home care, assisted living facility bills, home health care services or adult daycare services.

The monthly payout amount can equal 1%, 2% or 4% of the maximum benefit.

The company notes that it has been offering another type of LTC benefits rider, an accelerated death benefit for chronic illness rider, for more than a decade.

A policyholder pays for the LTC rider along with paying for the underlying coverage.

A policyholder pays for the chronic care rider only if the policyholder begins using the chronic care benefits.

Joe Kenny, Mutual of Omaha vice president, said in a statement that the company introduced the new rider because it wanted to give customers a choice about which type of rider to use.

Medicare Part D Plans

Mutual of Omaha is already a major player in the Medicare supplement insurance market, and it entered the Medicare Advantage market this year.

The company expects to sell Medicare Part D prescription drug plans in 49 states starting with the 2019 plan year, the company says.

The company will offer a Mutual of Omaha Rx Value plan and a Mutual of Omaha Rx Plus basic plan.

The company hopes to start selling the plans Oct. 15, when the Medicare plan open enrollment period for 2019 begins.

Mutual of Omaha will distribute the drug plans through independent brokers as well as through the agents in its Mutual of Omaha Advisor Network.

The company will also sell the plans through the web, and through direct sales channels.

— Read Mutual of Omaha Adds Indexed Universal Life Policy: Life Launchpadon ThinkAdvisor.

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