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New York Life Launches Stand-Alone Long-Term Care Insurance Policy

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New York Life Insurance Company has reaffirmed its commitment to the stand-alone long-term care insurance (LTCI) market by unveiling a new, stand-alone LTCI policy.

The company said Wednesday, in a press release, that it has designed the new NYL My Care policy to be a simpler, more affordable kind of LTCI policy.

(Related: New York Life Promotes New Life Policy’s LTC Benefits)

The company said it has tried to hold coverage costs down by using cost-sharing arrangements common in major medical insurance plans, such as deductibles and coinsurance payment requirements.

The company has also borrowed a coverage richness “metal level” framework from the Affordable Care Act major medical market rules: The company is telling consumers that they can get bronze-, silver-, gold- or platinum-level LTCI benefits.

New York Life posted a video discussing the new LTCI policy family in July.

News about the new policies has been circulating on social media since at least early August.

What’s in the Policy?

In the press release, the company appears to be describing a bare-bones policy aimed at the individual market.

In the release, the company does not mention either simple or compound inflation protection options. Instead, the company says purchasers have the option to buy more coverage.

The policy described in the press release also offers:

  • Return of premium up to age 65.
  • Waiver of premium after the deductible is satisfied.
  • Access to care planners.
  • Coverage for in-home support equipment.

What Else Could Be in NYL My Care Policies?

In forms and ads filed with organizations such as  the Arizona Department of Insurance and the Interstate Insurance Product Regulation Commission, New York Life representatives suggest that the NYL My Care product family could include products suitable for use in employer-sponsored “multilife” programs, or programs that promote the sale of individual LTCI policies to multiple people associated with the same organization.

The filings also suggest that the family could include products with 5% annual compound inflation protection, and products aimed at participants in state Long-Term Care Partnership programs.

State Long-Term Care Partnership programs encourage private LTCI use by letting consumers who exhaust the benefits from qualified LTCI policies shield more assets than normal if they end up needing Medicaid nursing home benefits.

Other New York Life LTC Planning Products

New York Life already sells a life insurance policy that provides long-term care (LTC) benefits, and a chronic care rider.

It also sells the NYL Secure Care stand-alone LTCI policy.

The NYL Secure Care LTCI policy will still be available, according to the NYL My Care release.

— Read AARP picks LTC products provideron ThinkAdvisor.

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