Long-term Care Insurance FAQ

Long-term Care insurance is currently unavailable for enrollment. LifeSecure will offer a new product series beginning in April 2018.

Q1: How will I pay for a LifeSecure long-term care policy?
You would pay LifeSecure directly, through a monthly, quarterly, semi-annual, or annual billing, or you can pay monthly through an Electronic Funds Transfer (EFT) from your checking or savings account. There are no payroll deductions for this coverage. 

Q2: How do I determine what my total Benefit Bank should be?
Your total Benefit Bank can be any amount from $100,000 to $400,000 with simplified underwriting. It can go up to $1 million with full medical underwriting. In selecting your Benefit Bank amount, you’ll want to consider a number of things:

  • Whether you need long-term care insurance to protect your retirement savings or other assets.
  • Longevity and health status of other members of your family.
  • Cost of long-term care in your area.
  • Length of time you might need long-term care. Currently the average length of time for long-term care in a nursing home is 2.5 years.
  • What you can afford in terms of a long-term care insurance premium, both now and after you retire.

Q3: What is the monthly access percentage?
The monthly access percentage is the percentage of your total Benefit Bank that you can use each month for long-term care expenses. You can select a monthly access percentage of 1, 2, or 3 percent. 

Q4: Can you please explain the flexible benefit?
The flexible benefit is a feature that allows long-term care benefits to be paid for informal care and services. That includes payment for care from family members or home modifications, while the insured still lives at home. This care is paid at 50% of the monthly access benefit amount.

Q5: What happens to the unused monthly benefit after the flexible benefit of 50% has been paid?
Any remaining monthly benefit is placed back into your total benefit to be used for future care. 

Q6: Do I have to build up my Benefits Bank balance before long-term care benefits are paid for a claim?
No, you don’t need to build up your Benefits Bank balance first. You will have coverage available from the time your policy is issued. You would begin to receive benefits after a licensed healthcare practitioner certifies you are unable to perform 2 of 6 activities of daily living or you have a severe cognitive impairment. But first you must also satisfy the one-time, 90-day waiting period. The waiting period is the time from when your care begins until the time the long-term care insurance policy begins paying for your care. 

Q7: Does coverage apply for individuals living internationally?
Yes, you can access up to 365 days of coverage for care outside the United States. The international coverage is paid on an indemnity basis in U.S. dollars—100% of the monthly benefit for care provided in a licensed facility or 50% of the monthly benefit for care at home or in a community-based setting. 

Q8: Is there a death benefit in the long-term care insurance plan?
No, the base plan of the LifeSecure long-term care policy does not include a payment in the event of the insured’s death. The death benefit (money back promise) is available as an optional rider for an additional cost.

Q9: Do I have to enroll in the long-term care insurance plan for my family members to be eligible to apply for coverage?
No, you do not have to enroll in the long-term care insurance plan for your family members to be eligible to apply for coverage.

Q10: Do employees/spouses who live in the U.S. need to be U.S. citizens to qualify for this coverage?
You must have a Social Security Number to apply for the long-term care benefit. 

Q11: Do I have to enroll for the long-term care insurance benefit each year?
You do not have to enroll each year. The policy is guaranteed renewable and as long as you keep paying your premium your coverage will be active. 

Q12: What are the deadlines for applying for long-term care insurance coverage?
A12: Newly hired employees will have 90 days from their date of hire to apply with simplified underwriting. If you enroll after 90 days, you will have to complete full medical underwriting to get coverage.

Q13: What happens if I stop paying my premium?
If you stop paying your premium the policy would lapse, and you would lose your coverage. 

If you have any additional questions, please call Life Secure’s dedicated University of Minnesota long-term care line at 855-549-8911.