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Is Pacific Life Premier Care too good to be true?

by Jack Lenenberg

Pacific LifeReview of Pacific Life Long Term Care Insurance

"What if you never need long term care?"

Often times this is the biggest stumbling block to buying long term care insurance.

It is an understandable concern because long term care insurance premiums are not inexpensive.

Now there is an alternative way to protect yourself against long term care costs while guaranteeing at the same time utilization of your policy benefits.

Sales of "hybrid" long term care insurance policies --policies that combine long term care benefits with other benefits such as paid-up life insurance--are the fastest growing products in the marketplace.  Sales of these policies grew 19% in 2012 compared with traditional LTC policies growing by 5%.

So, what is fueling this growth?

Today's low-interest rate environment might be fueling some of the demand. You can't earn much on cash you're reserving for emergencies, so you figure you might as well put it into an insurance policy that can provide you with long-term care benefits worth several times more than your original investment. Or, at the very least, your policy can provide money to your heirs if you never need long-term care.

Additionally, consumers are attracted to the fixed single premium guarantee of the policies.  Write one check today and you are finished.  The risk of receiving a rate increase in the future as with traditional long term care insurance policies is eliminated.

Lastly, consumers are attracted to the ability to receive their premium back at any time should they change their mind.

Hybrid Long Term Care Policies:  1 Premium, 3 Potential Uses

This is the unique attractiveness of hybrid long term care policies also known as "linked-benefit" LTC policies such as Pacific Life Premier Care, State Life Asset Care and Lincoln Moneyguard, among others.

In exchange for a single one-time upfront premium, you receive 3 guarantees:

  1. Long term care benefits if you need care
  2. Tax-free death proceeds if you pass away
  3. 100% Money Back Guarantee if you change your mind

It is this unique proposition of guarantees that makes hybrid long term care policies so popular with consumers.  The hybrid policies address the three primary concerns that consumers have with buying traditional long term care insurance policies:

1)  What if I buy an LTC policy and never need care?

2) What if the long term care insurance company increases my rates and I can't afford my coverage when I am older?

3) What if I decide long term care insurance just isn't for me?

With Pacific Life Premier Care these 3 concerns are addressed. 

You are guaranteed 100% usage of your premium deposit.  There is no ongoing premium that may be increased.  And Pacific Life will refund 100% of your premium to you at any time.

The Flexible Options of Pacific Life Premier Care

Pacific Life Premier Care is a very flexible long term care policy when it comes to designing your benefit options.  There are 3 benefit choices for you to consider. 

3 "Pieces to the Puzzle", so to speak.3 Pieces

1) One-time Premium Deposit:  Unlike traditional long term care insurance, one premium payment guarantees policy benefits from day one.  The greater your one-time premium deposit, the greater your long term care benefits will be.

2) Benefit Periods:  A wide range of Benefit Periods from 2 Years to 8 Years (24 months to 96 months) are available.

3) Inflation protection:  You may elect to incude inflation protection of 5% Compound, 5% Simple, or 3% Simple to grow your long term care benefits over time.  If you do not elect inflation protection your benefits remain level.

Hypothetical Pacific Life Long Term Care Case Study

Let's take a look at a hypothetical example:  A 60 year old male repositions $100,000 into Pacific Life Premier Care Advantage.  The policy would provide:

1) $549,064 of long term care benefits payable @ $5719 month for an 8 year benefit period; or

2) $137,266 of life insurance proceeds if care is never needed; or

3) $100,000 money back guarantee if you want your money back.

If inflation protection is included in the plan, you will receive even greater long term care benefits at age 75, 80, 85, 90, etc.

Pacific Life Premier Care Advantage Sample Illustration of Benefits for 60 year old male

Pacific Life Premier Care Advantage Brochure

What's Covered under Pacific Life Premier Care

Premier Care is a very comprehensive long term care policy.

Whether you choose to receive your care either at home or in a facility Premier Care will reimburse you for your out-of-pocket expenses.

Premier Care also includes international benefits for care received out-of-United States nursing facilities for 24 months.

0 Day Waiting Period for Home Care

There is no waiting period to receive home care benefits under this policy.  First Day Covered services include home care, adult day care, care coordination, durable medical equipment, home modifications, and caregiver training.

There is a 90 day waiting period to receive care in nursing facilities, assisted living, or international benefits.

Eligibility: As with most long term care insurance policies to receive LTC benefits your doctor must certify in writing that you need assistance with 2 of 6 activities of daily living (eating, bathing, dressing, toileting, transferring, maintaining continence); or you have a severe cognitive impairment such as Alzheimer's or dementia and you need verbal cueing and reminders to maintain safety.

Financial Rating of Pacific Life

It is important to buy your long term care insurance coverage with a highly rated company.  Pacific Life is a very strong and safe life insurance company with an A+ rating from AM Best, and $95 Billion in assets.

How do I qualify for Pacific Life Premier Care?

Premier Care is available to applicants ages 75 and younger. 

I tend to find that Pacific Life has a very easy and efficient application process.   All that is required from you is a telephone interview.  Pacific Life offers a very streamlined underwriting process.  The typical turnaround time for securing underwriting decisions is about one week.

Conclusions

I really like the Pacific Life Premier Care policy a lot, especially from a design standpoint. Unlike some of the competing linked benefit LTC policies, Premier Care is easily able to be customized with benefit period choices of 2 years to 8 years, as well as offering competitively priced inflation protection options.  The only hybrid long term care policy with greater benefit periods than 8 years is the State Life Asset Care policy which offers Unlimited benefit periods.

I also like the fact that Pacific Life will include an automatic discount for applicants that are married or partnered, yet Pacific Life will not require that both partners obtain policies in order to receive the discount.   This is important because you might determine your pricing is better with Company A while your partner is better off applying to Company B.  It is nice to know that your discounts are not lost and I can still shop around for you.

Receive Quotes and Illustrations

To receive customized illustrations and quotes for Pacific Life Premier Care as well as for other top-rated policies offered by leading LTC providers such as Lincoln Moneyguard, Genworth, Mutual of Omaha, Mass Mutual, State Farm, Northwestern Mutual, New York Life, State Life, Medamerica and more please call me toll free direct at (800) 891-5824. Or fill out my easy quote request form.

It would be my pleasure to help you sort through your options and get you approved for coverage.

Signature Ltc

Jack Lenenberg

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