Transamerica Adds Long-Term Care Rider to Universal Life Policy
Policyholders get early access to death benefits when the insured needs home care, adult daycare or facility care.
More clients might come to you with long-term care benefits packaged inside work-related life insurance policies.
Transamerica is now offering a long-term care rider with a universal life policy it sells on a voluntary, or employee-paid, basis at the worksite.
The rider can give a policyholder early access to the death benefits when the insured needs home care, adult daycare services or care in a nursing home or other residential facility.
The policy already offers a rider that can accelerate payment of death benefits for insureds who suffer from serious chronic conditions. An extension of benefits rider can make the chronic conditions benefits payment stream last longer.
What it means: Employers and life insurers have noticed that clients are getting older, and they are trying to use life insurance as a vehicle for providing some help.
The backdrop: A small insurer, Federal Life Group, said in April that it would be marketing an indexed universal life-LTC combination product at the worksite.
John Hancock unveiled an effort to offer long-term care benefits at the workplace together with indexed universal life coverage in September.
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