Unum Adds Chronic Care Rider To Life Insurance

CHATTANOOGA, Tenn. (June 28, 2021) — Companies have a new option to customize financial protection benefits for their workers, thanks to an enhanced whole life insurance plan by Unum. A new chronic care rider can give covered people access to a financial benefit to help with expenses if a person is diagnosed with a chronic illness. This option gives people more choice and flexibility in when and how they use the coverage.

The benefit can be used to meet a person’s unique health-care needs, whether they receive care at home or in a facility due to a chronic illness. If a person develops a severe cognitive impairment or loses the ability to perform two of the six activities of daily living, they likely qualify to receive the living financial benefit.[1] Premiums are waived if benefits are paid, which can provide more financial relief in a time of need.

“The cost of chronic care is expensive, and it can be hard to meet the qualifications for some types of insurance,” said Pam Jenkins, assistant vice president of Product and Market Development for Unum. “This coverage can help remove some of those barriers to provide financial support for people when they need it most.”

Seven in 10 people turning age 65 can expect to use some form of chronic care during their lives.[2] The median monthly cost of home health aid is $4,576, an assisted living facility is $4,300, and a private room in a nursing home is $8,821.[3]

“Everyone’s situation is unique, and our coverage should be flexible enough to meet them where they are,” Jenkins added.

[1] The activities of daily living include dressing, bathing, transferring, eating, toileting, and continence.

[2] U.S. Department of Health and Human Services “Caregiver Resources & Long-Term Care” https://www.hhs.gov/aging/long-term-care/index.html (2021)

[3] Genworth Financial “2020 Cost of Care” (2020)