Securian has tweaked its SecureCare linked-benefit life and long-term care contract to give the product more flexibility in a growing market segment.
“We wanted to remove as many barriers to the client as possible, allowing more access to benefits, because they have enough hoops to jump through in trying to figure out the care they may need,” said Kimberly Anderson, who manages individual life insurance product research and consulting for Securian.
SecureCare product designers spent hours talking with distribution partners, agents and advisors and found that what clients most value are guaranteed benefits, Anderson said.
There is no difference in pricing between the original version of SecureCare and the enhanced version, Anderson said.
The original version of SecureCare was launched last year and is still available to agents, she said.
Key Changes Between Old and New Versions
- The new version comes with a multiyear premium schedule of five, seven, 10 and 15 years. The original version came only with a single pay/single premium option.
- Under a multiyear premium schedule, there’s no guarantee that policyholders will complete payments before the policy is paid in full. Those who don’t pay in full will receive a guaranteed reduced benefit based on what they paid into the policy, avoiding the possibility of a policy lapse.
- The new version offers a monthly cash indemnity benefit from the moment policyholders start on claim without having to file and refile new paperwork to keep the benefit payments active. Traditional indemnity models, which the original version of SecureCare used, are based on receipt of a monthly form to validate the insured is still on claim.
- 100 percent return of premium upon completion of a vesting schedule. For single premiums, return of premium is available in the sixth policy year. For multiyear premium options, it is available the year after completing the payment schedule.
- A premium-based structure to pay for the cost of insurance and long-term care. Premium-based structures may qualify for an IRS tax deduction based on the premium payer’s eligibility. The previous version came with a charge-based structure, which was not eligible for the deduction.
InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected]
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