New York State Approves New Type of Combination Life and Long Term Care Insurance

You may be interested to know that a new combination Life Insurance/Long Term Care policy has been approved in New York State. This policy differs from other combination policies in some important aspects. They are as follows:

1. The underwriting for the policy is based on mortality as opposed to morbidity. This means that someone who was denied for a normal LTC or combination policy may be approved for this policy.

2. Once the policy is activated, cash will become available without regard to actual LTC expenses. Other policies reimburse only for actual documented expenses.

3. There are no restrictions on how the cash is used. A typical LTC policy only covers certain types of expenses.

4. Annual cash benefits are available up to IRS limits ($102,200 in 2009).

This policy provides you with a way to obtain long-term care insurance for those clients who either are not able to obtain insurance due to underwriting issues or for those who view LTC insurance as “lost” premiums if they don’t use it.

Source: Craig Marcott, Inc., East Patchogue, 3/23/09 newsletter.