Universal life insurance policies that include a long-term care rider are now available to members of the Colorado Medical Society. These policies combine traditional life insurance protection with long-term care coverage, offering a way for policyholders to use their death benefit to help pay for nursing home care, assisted living, or home health services if needed during their lifetime.
Transamerica Universal Life with Long Term Care Rider is being offered as a simplified issue policy. According to the organization, “Transamerica Universal Life with Long Term Care Rider is a two-in-one benefit that offers simplified issue life insurance for family needs plus long-term care benefits. With the Restoration Rider, the life insurance benefit pays out even if you use the long-term care benefit.”
The policy provides several features: no medical exams or blood work are required to qualify; there is guaranteed death benefit protection; and it builds cash value accessible during the insured’s lifetime. The coverage also includes a waiver of premium payments in cases of layoff or strike and allows payment through payroll deduction.
Universal life insurance differs from term life by including a savings component that accumulates value over time. This allows flexibility in adjusting premiums and coverage amounts as financial circumstances change.
A key feature is the Long Term Care (LTC) Rider, which can provide monthly benefits equal to 4 percent of the death benefit for nursing facility or assisted living care, or 2 percent for home health or adult day care. For example, someone with a $100,000 death benefit could receive up to $4,000 per month for nursing home care or $2,000 per month for home health services.
The policy also comes with an Accelerated Death Benefit for Terminal Condition Rider at no extra cost. This feature allows access to up to $150,000 or 75 percent of the death benefit if diagnosed with a terminal illness. If all long-term care benefits are used, an Extension of Benefits Rider continues coverage while maintaining some death benefit for beneficiaries.
Members of the Colorado Medical Society who practice full time can apply for this coverage starting at face amounts of $25,000. Premiums vary based on age and selected coverage amount.
Enrollment is currently open. More information about plan options and costs can be found at https://enroll.buddyins.com/cms.
“While no one likes thinking about needing long-term care or leaving family behind, having proper protection in place provides invaluable peace of mind. Transamerica’s Universal Life Insurance with Long Term Care Rider offers comprehensive protection for what matters most – your family’s financial security and your care needs as you age,” according to Transamerica.
