About Chubb
Chubb Worksite Benefits (Combined Insurance Company of America): https://www.combinedinsurance.com/us-en/corporate.html
- A+ AM Best Rating
- Founded in 1922, so over 100 years in business
- Over 5 Million supplemental policyholders across 5000+ group clients
- Parent company is Chubb, which is one of the largest insurance companies in the US and in the world
What is long term care (LTC)?
Long term care is the personal care and/or supervision (custodial, supervisory, or skilled care) needed by persons of all ages for an extended period.
Often this is because of conditions associated with the effects of aging, but LTC may be needed at any time due to an accident or illness. At some point in our lives, it is estimated that more than 60 percent of us will need assistance with things like getting dressed, driving to appointments, or making meals.
Is LTC covered by health or disability insurance?
- Medicare: Only pays for skilled services or rehabilitative care for a limited time.
- Medicaid: Pays for the largest share of LTC services but has strict income and eligibility requirements.
- Employer / Private Health Insurance: Typically covers the same limited services as Medicare.
- Disability Insurance: Covers lost income for protection during working years but does not cover the cost of LTC services.
How does this program cover LTC costs?
This program is a Term Life Insurance Policy with Long Term Care (LTC) Rider Benefits. It provides dual protection for the cost of LTC and financial support for your beneficiaries after you are gone.
When you elect a life insurance benefit amount, you will also get LTC coverage. The LTC coverage amount is a percentage of the Life Insurance benefit amount and is paid out in monthly increments.
Should I consider this if I already have LTC insurance?
If you already have LTC insurance, great! You may want to use this enrollment as an opportunity to review your coverage. It is often recommended to keep your original coverage because of the value it provides. However, if you would like to review your existing plan in more detail, you can meet with one of the LTC insurance specialists supporting this enrollment to review your coverage and options.
Can you explain in more detail how I might use the policy?
There are generally two ways you might use the policy:
If you need LTC coverage, the benefit will pay a monthly benefit of 4% of the total amount of Life Insurance you buy once you qualify for benefits. For example, if you buy $100,000 in Life Insurance coverage, you will receive $4,000 a month for up to 75 months (about 6 years) for a total potential benefit of $300,000*.
If you don't need LTC in your lifetime, there is still a death benefit available to your beneficiaries. Again, using the example, if you buy $100,000 of life insurance and don't use any LTC expenses, your beneficiaries would still be able to receive up to $100,000* in death benefits.
*The product is priced to provide this benefit amount for a non-smoker through age 99 at a 3% interest rate. The product waives the premium at age 100, but still provides a reduced amount of Life and LTC coverage through age 121.
Are there different types of coverage available depending on age?
The product is available with guaranteed issue coverage and no health underwriting for active-at-work members ages 19-70.
The product is available with simplified issue coverage and 6 health questions, but only up to $50,000 of coverage with no LTC extension rider for active-at-work members ages 71-80.
Once the member applies, up to 50% of the coverage is available for spouses with simplified issue underwriting and 6 health questions from ages 19-70.
How much does it cost?
The premium is based on how much death benefit you select, the age that you are at the time of application and your smoking status.
The best way to see your pricing is to click "Build Your Benefit" for an estimate and then "Enroll Today" to begin the enrollment process for pricing specific to you. You are under no obligation to purchase once you start the enrollment process and can exit anytime.
You will enter some personal information and choose a death benefit from $25,000 - $150,000.
Can I increase my Insurance coverage at a later date?
You may request to increase your existing insurance coverage at a later date (after your 30-Day Free Look Period) if approved with medical underwriting and not to exceed the maximum policy limit. If approved, the increase in coverage will be based on your current (attained) age.
Can I obtain coverage without providing evidence of good health?
Yes, if you select a death benefit within the program’s Guaranteed Issue amount and are between the ages of 19 and 70, actively-at-work, and during the special enrollment period, there are no medical questions and acceptance is guaranteed. Guaranteed issuance is unique to special enrollment periods and may not re-occur every year.
How do you qualify to receive LTC Benefits?
To receive LTC benefits, you must be receiving assistance with two (2) or more activities of daily living (transferring, continence, bathing, dressing, eating, toileting) or you have cognitive impairment expected to last more than 90 days. You also need to be receiving care from a licensed professional in a LTC facility, nursing facility or receiving home health care. Benefits are payable after you meet your 90-day elimination period, meaning, benefit payments will start 90 days (about 3 months) after your LTC needs begin.
A qualified health professional will need to certify that you meet the activity of daily living or cognitive impairment requirement.
Does family-provided care qualify me to receive LTC benefits?
No, you must be receiving care from a qualified, licensed professional in order to receive LTC benefits under the plan. Once your claim is approved, the full monthly benefit amount is paid regardless of the actual professional care expenses incurred. If the benefit amount is not entirely consumed by professional LTC expenses, any remaining benefit can be used at your discretion.
Are there any limitations on where care is received?
If you qualify for LTC benefits, where you receive care is up to you (at home, assisted living, adult day care, nursing home). However, the policy will only pay LTC benefits for care received in the United States.
Death benefits are paid anywhere in the world.
What if I have a pre-existing condition?
There is no pre-existing condition limitation if you meet the initial eligibility requirements.
Once I am receiving LTC benefits under the plan, do I continue to pay premiums?
No, premium payments will be waived while you are receiving payments under the LTC benefit.
What is the Child Term Rider?
This is an optional feature that allows you to purchase term insurance for all of your children for a small additional cost. Should you purchase this rider, and any of your children pass away from ages 15 days old through 25 years old, the beneficiary will receive the death benefit elected. This coverage is also convertible for your child through age 25 to an individual term policy at additional cost, but with no medical underwriting and can elect up to 5x the initial death benefit upon conversion.
What happens if I stop paying my premium?
After 10 years, paid-up benefits begin to accrue. At any point thereafter, if an employee stops
paying premiums, a reduced paid-up benefit is issued and can never lapse. That means an
employee who retires can stop paying premiums and have a death benefit for the rest of their life
- guaranteed.
What happens if I cancel my plan at a later date?
If you cancel the policy after the 30-Day Free Look Period, but before 10 years, you will not receive benefits from the policy.
How long does this policy last?
Coverage is designed to mature at age 121.
The product is priced to provide the LTCi and Life benefit amounts for a non-smoker through age 99 at a 3% interest rate. The product waives the premium at age 100, but still provides a reduced amount of Life and LTC coverage through age 121.
What if I leave the association or retire?
This policy is completely portable – meaning you take the coverage with you even when you retire as long as you continue to pay the premiums.
Can policyholders take a loan from the cash value? If yes, what are the terms?
No, loans are not available on this Term Life policy.
Are my premiums guaranteed or will the costs increase with age?
Your premium is based on your age at the time of issue and is not expected to increase as you age. The life insurance portion of the premium is guaranteed level for life. This is a majority of the total premium. The LTCi portion of the premium is guaranteed renewable, which means that it can be changed on a class basis, but not based on your individual health. If the insurance company files for a rate increase, it has to be actuarially justified and approved by the state and would impact a minority of the total premium.
How do I pay my premium?
During the application process, you would enter your bank account information to authorize a bank draft from the insurance company. In a couple of months, the insurance company will draft premiums after confirming your banking information.
Are my LTC or Life Insurance benefits taxable?
Life and LTCi benefits paid are generally received tax-free. However, as with all tax matters, you should consult your personal tax advisor to assess the impact of this benefit. The insurance company has no responsibility for any tax consequences of any benefits paid under this policy. The LTC rider is filed to be a federally tax-qualified LTC insurance contract.
Why does the application require my SSN, height, and weight?
The insurance company requires SSN to set up the policy as it is used for tax purposes and claims. Height and weight are used in underwriting if you are ineligible for Guarantee Issue underwriting and are required to answer health questions.
Are my LTC benefits taxable?
Benefits paid may or may not be taxable. Whether or not you or your beneficiary incur a tax liability when benefits are paid depends on how the IRS interprets applicable portions of the Tax Code. As with all tax matters, you should consult your personal tax advisor to assess the impact of this benefit. The insurance company has no responsibility for any tax consequences of any benefits paid under this policy. The rider for LTC insurance is not intended to be a federally qualified LTC insurance contract.
