Minnesota Life SecureCare Long Term Care Insurance Review and Rating
A terrific hybrid combination life and long term care insurance policy just got better.
Minnesota Life, a subsidiary of Securian Financial, has launched an enhanced version of SecureCare, a combination life and long term care policy that will protect your assets should you have a long term care event.
Now, Securian SecureCare pays out 100% cash indemnity benefits.
SecureCare is one of the new breed of hybrid long term care policies that allow you to use your policy up to three ways.
1. If You Need Long Term Care - You Receive Tax-Free Long Term Care Benefits
2. If You Pass Away - Your Beneficiaries Receive Tax-Free Death Benefits
3. If You Want Your Money Back - You Receive Your Cash Surrender Value
Not only do you receive benefits whether you "Live, Die or Quit" but also you receive fixed guaranteed premiums.
Unlike with the non-guaranteed premiums inherent within traditional LTC policies, your SecureCare premiums can not be increased by Securian Financial/Minnesota Life.
So, what makes SecureCare different and better? SecureCare is now a 100% Cash Indemnity policy. The submission of receipts are no longer required by Securian/Minnesota Life.
Securian SecureCare Cash Indemnity Hybrid Long Term Care Policy - The Ultimate Flexibility
Most long term care insurance policies are reimbursement models. With reimbursement policies you are required to submit your receipts to your insurance company to evidence your out-of-pocket expenses for qualified care. The insurance company will subsequently reimburse you for your qualified expenses under your policy contract.
Securian SecureCare is different. It is simple. It is flexible. Cash is King.
With cash indemnity long term care policies you do not have to save and submit your receipts and justify your costs. You may spend your long term care insurance monthly benefit amount however you want, without restrictions or limitations.
Your benefits may be used for all settings and a wide variety of support situations including Home Healthcare, Assisted Living, Adult Day Care, Hospice, Nursing Home Care, Home Modifications, Caregiver Training. So long as you are determined to be chronically ill you will have access to 100% of your monthly long term care benefit without receipts.
This flexibility with SecureCare will allow you to spend your benefit dollars in the manner your prefer such as on informal home caregivers, or to pay for other ancillary care expenses like housekeeping, transportation, medication or home maintenance needs.
Securian/Minnesota Life SecureCare Long Term Care Insurance - How Does It Work?
So, how is SecureCare designed?
SecureCare is designed like most long term care insurance policies. You select an initial monthly long term care benefit amount, a benefit period, and optional inflation protection. (Or you can reverse engineer your benefits through the election of a fixed premium deposit)
LTC Benefit Period Options: 2-7 years
Represents a combination of the Acceleration for Long-Term Care Agreement and the Extension of Long-Term Care Benefits Agreement.
Your benefit period is comprised of two components:
Acceleration For LTC Agreement: 2 or 3 Years
Receive a monthly acceleration of your life insurance benefit for either 2 or 3 years.
Extension of LTC Benefits Agreement 2 or 4 years
Add the optional Extension for Long-Term Care Benefits Agreement which increases your benefit payments for 2 or 4 years, extending your total benefits up to a maximum of 7 years.
Your benefit period could be longer should you request less monthly benefit than 100% of your available amount.
Inflation Protection Options
Increases your monthly LTC benefit and Total Benefit Amount as a set percentage annually.
3% simple, 3% compound, 5% simple, 5% compound
Return of Premium Vesting Schedule
Year 1: 80%
Year 2: 84%
Year 3: 88%
Year 4: 92%
Year 5: 96%
Years 6+ 100%
90 Calendar Days; 0 days Home Modifications and Caregiver Training.
Guaranteed Residual Death Benefit
10% of the base face amount or $10,000 whichever is less.
Single Pay - Pay your entire payment upfront; or
Multi-Pay - Pay for your policy in fixed equal payments over 5, 7, 10 or 15 years
Minnesota Life Insurance Financial ratings
A+ (Superior) from A.M. Best
AA (Very Strong) from Fitch
Aa3 (Excellent) from Moody's
A+ (Strong) from Standard & Poor's
Securian/Minnesota Life SecureCare Long Term Care Benefits Comparison
If you are like most of my clients, undoubtedly you will want to know:
"What is the best long term care insurance policy for my money?"
This is a fair question to ask.
Today, there are a half-dozen or so hybrid long term care insurance policies available in the marketplace.
Other available policies are Lincoln Moneyguard II, Pacific Life Premier Care, OneAmerica Asset Care, Nationwide CareMatters, Mass Mutual CareChoice One and New York Life Asset Flex.
Of these hybrid linked-benefit policies, 100% cash indemnity benefits are also available through only one additional linked-benefit policy, Nationwide CareMatters.
Pacific Life Premier Care will also offer an indemnity option at claim time, however with Pacific Life your indemnity benefit is 80% not 100%. And your decision to opt for indemnity with Pacific Life is irrevocable. So, you might forfeit 20% of your long term care insurance benefits forever with Pacific Life.
The remaining policies available through Lincoln, OneAmerica, New York Life and Mass Mutual are all reimbursement models.
We have reviewed Mass Mutual and New York Life's policies prior. As determined on these pages, the NY Life and Mass Mutual benefits are not compelling so we do not need to recycle old news here.
The OneAmerica Asset Care policy is a terrific policy, however Asset Care is generally priced best as a joint life policy, and Asset Care offers Unlimited Lifetime benefits neither of which Securian SecureCare can compete with.
So, for the purpose of comparing the Securian SecureCare pricing let's compare four linked-benefit LTC policies, all available as individually issued policies:
Lincoln Moneyguard II, Pacific Life PremierCare Max, Nationwide Care Matters and Securian/Minnesota Life SecureCare.
Let's look at 60 year old male and female pricing with Couples Discounts. $100,000 Single Pay Premium each. 6 year benefit periods each.
6 year benefit periods is generally a sweet spot for pricing with these policies.
|Age 60||Age 80||Age 80 Pool|
|Securian 3% comp.||$5462||$9866||$765,791|
|Lincoln 3% comp.||$5452||$9846||$764,263|
|Pacific 5% simple||$5030||$10060||$769,621|
|Nationwide 3% simple||$4049||$6357||$479,587|
|Securian 5% comp.||$3958||$10503||$857,274|
|Pacific 5% comp.||$4022||$10673||$871,161|
In reviewing the benefits above for 60 year old men, you can see the monthly long term care benefits are reasonably close at age 80 with policies through Lincoln, Pacific Life and Securian.
Obviously, the alternative 100% cash indemnity policy Nationwide CareMatters is simply priced awfully.
With Pacific Life and with Securian, men can maximize their long term care benefits with the election of 5% compound inflation protection.
If you opt for 5% compound with either Securian or Pacific Life you diminish your life insurance benefit. So there is a slight trade off with the inflation option selection to maximize your long term care insurance benefits.
Of the 3 policies with reasonable benefits (Lincoln, Pacific Life and Securian) we have the following:
Securian SecureCare is 100% cash indemnity
Pacific Life Premier Care Max is 100% reimbursement, or 80% indemnity; this is an irrevocable decision at claim time;
Lincoln Moneygaurd II is 100% reimbursement only
Return of Premium Vesting Schedule
Securian SecureCare has 100% vesting Return of Premium after 5 years
Pacific Life Premier Care Max has 100% vesting Return of Premium after 15 years
Lincoln Moneyguard has 80% Return of Premium all years
Securian SecureCare has a 90 Calendar Days Elimination Period
Pacific Life Premier Care has a 90 Calendar Days Elimination Period applicable to Assisted Living and Nursing Facilities
Lincoln Moneyguard has a 0 Day Elimination Period
So, in analyzing the benefits above you will conclude the Secure Care policy through Securian will look very attractive for you especially with the simplicity and the flexibility the cash indemnity benefits Secure Care offers to you when you have to make your claim.
Here are the illustrations for the above companies.
Now let's take a look at the numbers for a 60 year old female. $100,000 premium, 6 year benefit periods each
|Age 60||Age 80||Age 80 Pool|
|Securian 3% compound||$4842||$8745||$678,786|
|Lincoln 3% compound||$4832||$8727||$677,431|
|Pacific 5% simple||$4241||$8482||$648,943|
|Nationwide 3% simple||$3831||$6015||$453,758|
As you can see clearly the numbers for women are within a tight range, except for the Nationwide CareMatters policy which (once again) is priced well beneath the benefits of the long term care policies through Securian, Lincoln and Pacific Life.
The Nationwide Care Matters absurdly high pricing really underscores the high value of the Securian SecureCare cash indemnity policy. Obviously, Nationwide is significantly discounting the benefits Nationwide makes available due to its cash indemnity flexibility.
In stark contrast, Securian is pricing its cash indemnity policy in-line with the reimbursement hybrid models.
Very impressive by Securian.
Here are the female age 60 illustrations for the 4 companies.
Securian/Minnesota Life SecureCare Conclusions
In what is starting to become a fairly commoditized product, hybrid long term care insurance benefits and pricing are beginning to highly converge.
To distinguish its product offerings from the vanilla masses, it is important and critical for an insurance company to set itself apart and to offer you something valuable, something better, something unique for your money.
We see something unique being offered with the OneAmerica Asset Care policy which offers you Lifetime Unlimited benefit periods, and also makes available joint coverage for 2 insureds as well. The OneAmerica Asset Care policy is one prime example of a difference maker.
Now we have a second hybrid policy that is willing to offer you something different and better than what has become the norm.
This Securian SecureCare policy is priced very well for the cash indemnity benefits it offers you.
The SecureCare policy is priced in-line with the reimbursement Lincoln Moneyguard and Pacific Life Premier Care Max policies, yet you are not required to submit receipts to receive your policy benefits by Securian/Minnesota Life. This is important flexibility for you at claim time, particularly should you want informal care to be provided to you by your friends or family members, or should you want the flexibility of using your benefits however you wish. If you are seeking an individual hybrid long term care policy this Securian SecureCare policy should be high on your list of long term care insurance policies to consider.
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