Hybrid LTC insurance come with several benefits all adding up to allowing a single premium to serve three potential uses. It is a policy with what is known as linked benefits. The Pacific Life Premier Care allows clients to make one single payment as an upfront premium fee that then gives three possible guarantees. These include long-term care benefits if the contributor ever requires such, tax-free death benefits of the contributor never requires long-term care and full premium amount money-back guarantee if the contributor changes their mind regarding the policy. This configuration basically addresses the three major concerns that LTC customers always have;
- What if I purchase a long-term care policy but never require one?
- What if the rates rise and I cannot afford it?
- What if I realize later that the policy is just not for me?
The Pacific Life Premier Care ensures that there is 100% money back guarantee, no increases on premiums and full usage of the contributed premiums.
The LTC package is not rigid but is offered in three possible configurations. The first is a single one-time premium deposit. This deposit will then guarantee the contributor benefits starting from the first day. Generally, the higher the deposit, the higher the benefits will be. There are also several benefit periods ranging from 2 years all the way to 8 years. Lastly, the contract comes with added inflation protection. The contributor can elect to have this at a 5% compound, 5% simple or 3% simple to ensure the growth of their benefits throughout time. If this is not elected, the benefits remain at a single level.
What is covered?
The policy is quite comprehensive, covering a very wide range of issues. Regardless of where one chooses to receive their care, the company will refund your out-of-pocket expenses. There is usually no waiting period for home care benefits but there is a 90-day waiting period for care received in nursing facilities. However, to qualify for benefits, there must be certification from a doctor that you require assistance with at least two of six daily living activities.
The package is available to those aged 75 and below. The application process is pretty straightforward and only requires a telephone interview. Typically, the decision to award a policy will take about five to seven days. The company is among the best in the industry and has an A+ rating from AM Best and more than $90 billion in assets.
From a design perspective, the package is among the best you will get in the market. The additional customization and wide period for payouts make the policy even more attractive. There is usually a discount for those married or partnered even if only one of the partners obtains the policy. This is at times overlooked by underwriters while it could actually provide benefits for those applying for the policies. There is only one policy whose benefits exceed Pacific Premier Life’s 8 years, State Life’s Asset Care.