Life-Home Care Hybrid May Help Clients Manage Long-Term Care Risk
What You Need to Know
HCG Secure developed the product with Guarantee Trust.
Coverage amounts range from $10,000 to $150,000.
The program comes with an annual well-being assessment feature.
An insurance broker is offering advisors and their clients a new long-term care planning tool.
HCG Secure has teamed up with Guarantee Trust Life Insurance to introduce the Home Life Secure life insurance policy.
The policy combines home care benefits with a whole life insurance policy. The life-home care hybrid policy can provide $10,000 to $150,000 in home care benefits.
What It Means
Aside from scenarios that involve clones or the arrival of hostile space aliens, just about everything that could have gone wrong in the U.S. market for stand-alone long-term care insurance went wrong between 2000 and 2015. That led to a slump in long-term care planning product development as many baby boomers were aging out of being healthy enough to qualify for traditional medically underwritten long-term care insurance policies.
HCG Secure is positioning its new product as a planning tool that could be suitable for budget-conscious clients who already have conditions such as diabetes.
Home Care Secure
HCG Secure is the Goshen, Connecticut-based company that recently introduced the Home Care Secure insurance policy.
The policy can pay $20,000 to $60,000 in home care benefits over a period of up to 50 weeks.
Guarantee Trust Life is writing the coverage.
A nonprofit group, the St. Louis-based Aging at Home Association, is offering the program as an optional member benefit.
Home Life Secure
HCG Secure and Guarantee Trust Life have based the new product on a “graded death benefit” whole life policy.
The policy provides home care benefits through a chronic illness accelerated death benefit rider.
Starting in the third policy year, the insured can use 90% of the available death benefit to pay for care. The insured can get either 8% of the available death benefit each month, or 50% of the available death benefit in one lump sum.
