National Guardian Life

Since 1909, National Guardian Life Insurance Company (NGL) has been one of America's most successful and highly rated independent mutual life insurance companies. Licensed to do business in 49 states and the District of Columbia, NGL is rated A- (Excellent) with positive outlook from AM Best, the world's oldest and most authoritative rating information source. With over 100 years in the insurance industry, a diverse product mix and a history of financial strength and stability, NGL is the go-to choice for traditional long term care (LTC) insurance in 2021.

National Guardian Life Essential LTC Policy Summary

Policy Type: Individually-Underwritten, Tax-Qualified, Reimbursement.

Available Coverages: Comprehensive (Home and Community Care Services & Facility Care Services) or Facility Care Services Only.

Rates: Gender-distinct premium rates. Joint premium rates are available. Gender-neutral (unisex) premium rates are available via the Employer Group rate class.

Available Issue Ages: 40-79 (Age nearest)

Individual or Joint Policy: Individual or Joint. Joint policies and premium rates are available for two individuals who reside in the same household. If related, policyholders must be of the same generation (i.e. siblings).

Daily Benefit Amount: $50 to $300 ($10 increments)

Premium Payment Options: Single, 10-Year, or Lifetime Premium Payment

Elimination Period: 0, 30, 90, or 180 days of service (cumulative and one-time)

Benefit Period: 2 Year and 3 Year – Benefit Period Extension Riders are available with the 3 Year Benefit Period. A 1 year extension extends the Benefit Period to 4 years, a 2 year extension extends the Benefit Period to 5 years, a 3 year extension extends the Benefit Period to 6 years, or a lifetime extension extends the Benefit Period to a Lifetime Benefit Period.

Underwriting Rate Classes: Preferred Plus, Preferred, Standard, or Employer Group

Eligibility For Payment of Benefits: Chronically ill as defined in the policy with certification from a Licensed Health Care Practitioner

Waiver of Premium/Joint Waiver of Premium: Waiver of Premium included in base contract for Facility Care Services. Waiver of Premium for home and community based services is available as an additional cost rider.

Additional Policy Benefits: Benefits paid will be subtracted from the daily benefit amount. • Respite Care - Maximum of 30 days per calendar year • Facility Bed Reservation - Maximum of 30 days per calendar year • Emergency Response System - Reimburse charges up to $50 per month • Caregiver Training - Maximum Lifetime Benefit of 5 times the Daily Benefit Amount • Coverage Outside of the U.S., U.S. Territories, and Canada - up to 30 days per calendar year

LTC Partnership: EssentialLTC is available as a Partnership policy in many states: • with the purchase of an Inflation Protection Rider for ages 75 and below • with or without the purchase of an Inflation Protection Rider for ages 76+. LTC Partnership policies may entitle the insured to Medicaid asset disregard benefits. This generally allows a person to keep assets equal to the insurance benefits received under a qualified Partnership policy without affecting the person’s eligibility for Medicaid.

Contingent Benefit Upon Lapse: If premium rates are increased resulting in a cumulative increase of the annual premium equal to or exceeding the percentage of the initial annual premium as set forth in the table in the policy, and the policy lapses within the grace period, then the following options become available: 1. the Daily Benefit Amount and Benefit Period may be reduced (subject to availability), or
2. the policy may be converted to a paid-up status with a Benefit Amount equal to the total of premiums paid and no less than 30 times the Daily Benefit Amount in effect on the date of lapse.

Shared Benefit Amount Rider: If either or both insureds exhaust their own Benefit Amount, a joint Shared Benefit Amount
will become accessible which may be accessed by either or both insureds. The joint Shared Benefit Amount will also increase due to an Inflation Protection Rider, if attached to the policy. Available on all benefit period options except the Lifetime benefit period extension rider.

Compound Inflation Protection: On each policy anniversary, the Daily Benefit Amount will increase by the chosen election of 3% or 5% of the previous year’s Daily Benefit Amount, with a corresponding increase in the Total Benefit Amount.

Step-Rated Compound Inflation Protection: Choose between a 3% or 5% Step-Rated Compound Inflation Protection Rider. The Daily
Benefit Amount, Benefit Amount, and premium will increase by the percentage shown on the policy schedule on each policy anniversary date.

Waiver of Premium Rider: Premium payments are waived once payment of benefits begins for either Facility Care
Services or Home and Community Care Services

First Day HCCS Rider: When Home and Community Care Services (HCCS) coverage is included, benefits will be payable on the first day the insured(s) is/are qualified to receive benefits for HCCS only.

Benefit Period Extension Rider: Extends base 3 Year Benefit Period to either 4 years, 5 years, 6 years, or to a Lifetime Benefit Period.

Limited Return of Premium Rider: Upon the death of the insured(s) while the policy is in force (last to die under joint coverage), the total of premiums paid, reduced by the total of benefits received, will be paid to the beneficiary.

Limited Return of Premium with Optional Policy Surrender Rider: Upon the death of the insured(s) while the policy is in force (last to die under joint coverage), the total of premiums paid, reduced by the total of benefits received, will be paid to the beneficiary. This rider includes an option to surrender the policy for a lump sum payment to the policyowner of up to 80% of total premiums paid, reduced by the total of benefits received.

Full Return of Premium Rider: Upon the death of the insured(s) while the policy is in force (last to die under joint coverage), the total of premiums paid will be paid to the beneficiary.

Full Return of Premium with Optional Policy Surrender Rider: Upon the death of the insured(s) while the policy is in force (last to die under joint coverage), the total of premiums paid will be paid to the beneficiary. This rider includes an option to surrender the policy for a lump sum payment to the policyowner of up to 80% of total premiums paid, reduced by the total of benefits received.

Shortened Benefit Period Nonforfeiture Rider: If the policy lapses for nonpayment of premium after it has been in force for 3 years, coverage will continue, and benefits are payable equal to the greater of total of premiums paid, or 30 times the Daily Benefit Amount in effect at the time of lapse.

Unique Features Of The National Guardian Long Term Care Insurance Policy

The NGL EssentialLTC policy is the most comprehensive traditional long term care insurance policy (by far) in the marketplace.  It offers features to you as a consumer that do not exist with any other traditional LTC insurance underwriter.

A few of its compelling benefits and options are:

Lifetime LTC Benefits:  NGL is the only traditional LTC policy that will offer you Unlimited Lifetime LTC coverage. (OneAmerica offers Lifetime LTC benefits on its hybrid Life/LTC policy Asset Care)  If you are concerned with catastrophic long term care risk (think Alzheimer's, dementia) the NGL policy will afford you the opportunity to buy Unlimited LTC benefits.

10 Pay and Single Pay Funding: NGL allows you to pay up your policy in a single premium payment, or in payments over 10 years. This is a huge opportunity for you to consider.  Traditional LTC insurance premiums are not guaranteed.  Almost every other traditional policy requires a Lifetime premium payment, and your premium is not guaranteed.  You could receive a rate increase.  With the NGL single pay option, you avoid the rate increase entirely.  With the 10 Pay option, you will significantly mitigate your risk of receiving rate increases because your policy will be paid up within a short period of time.   

Joint Life Pricing:  NGL is the only traditional LTC policy that offers joint life pricing for couples.  This will significantly reduce your premium if you are applying together for coverage as a couple.  All other traditional LTC underwriters only sell individual policies.

1035 exchanges:  NGL is one of the very few traditional LTC underwriters that will accept tax free 1035 exchanges of life insurance or annuity cash value to fund your long term care insurance premium. Should you have cash value with gains above cost basis inside insurance policy contracts, you will be able to exchange your cash value tax-free into LTC insurance policies under the Pension Protection Act of 2006, and if you need to receive long term care, you LTC insurance benefits will be received tax free.  This 1035 exchange option used in conjunction with the Single Pay premium option will provide you with the best premium leverage to use non-qualified annuity gain to fund future care needs on a tax free basis.

Shared Benefits - 3rd Benefit Pool:  If you are applying as a couple, NGL offers you the option to include a Shared Benefit Amount rider to buy an additional 3rd Pool of money that you each may access if you exhaust your entire benefit pool.  With most Shared Care LTC riders, you would be using your partner's LTC benefits if you exhausted your own benefits.  This 3rd pool of money approach is much better for you because you will not be taking future benefits away from your partner.  You each will have access to the additional 3rd pool of money.  

For example, if your partner and you each buy 5 year benefit periods with a Shared Benefit rider, you each will have 5 years, and you will share a 3rd pool of 5 years.  So either of you could receive 10 years of benefits with your partner still owning 5 years of coverage at a minimum.

The Shared Benefit Rider is a great alternative to buying Unlimited Lifetime benefit periods because you each can address the risk of needing care for a longer period of time through this 3rd pool.

Competitive Rates: In 2021, National Guardian Life offers extremely competitive long term care insurance pricing in the marketplace for most situations.  Certainly for couples applying together for coverage, it's joint life pricing will be unbeatable when compared to buying individual policies.  

National Guardian Life Financial Ratings

National Guardian Life is rated A- (Excellent) by AM Best.

NGL Financials

Comparing National Guardian Life LTC Insurance Benefits and Rates

To illustrate how competitively priced National Guardian might be for you if you are a couple applying together let's take a quick look at LTC premiums for a range of ages with 4 of the leading underwriters; National Guardian, Mutual of Omaha, New York Life, Northwestern Mutual

To keep this process simple, let's compare rates for benefits of $150.00 day, 3 year benefit periods, automatic annual 3% compound inflation protection, and a 90 day elimination period.  This plan design is a fairly straightforward cookie-cutter long term care policy.

Age 45 year old couple

National Guardian: $206.00 month (joint life pricing)

Mutual of Omaha: $352.34 month ($133.19 male, $219.15 female)

New York Life: $499.75 month ($209.28 male, $290.47 female)

Northwestern: $572.84 month ($207.65 male, $365.19 female)

Just absolutely huge differences in the joint life pricing for you with National Guardian.  If you are curious, the NGL 10 year Pay premium is only $608 month.  Not that much different than the Northwestern Mutual lifetime payment option, that you might have to pay for 45 years!

Age 55 year old couple:

National Guardian: $256.00 month (joint life pricing)

Mutual of Omaha: $438.33 month ($163.60 male, $274.73 female)

Northwestern: $549.98 month ($196.06 male, $353.92 female)

New York Life: $562.21 month ($231.07 male, $331.14 female)

Same results for 55 year old couples.  The NGL joint life pricing is feels like "buy one, get one free."  The 10 year Pay NGL pricing for 55 year old with this plan design will only be $659 month, by the way.  Once again, the NGL 10 Pay is also a great alternative to the Lifetime payment plans for 55 year old couples.

Age 65 year old couple

National Guardian: $370.00 month (joint life pricing)

Mutual of Omaha: $632.37 month ($236.57 male, $395.80 female)

Northwestern: $682.46 month ($248.99 male, $433.47 female)

New York Life: $764.41 month ($303.30 male, $461.11 female)

The joint life pricing advantage is simply huge today for all couples, all ages.  And once again if you are curious, the NGL 10 Pay premium for 65 year olds for these long term care insurance benefits is $788 month.  Again, not much different than the Lifetime commitment premiums for Mutual of Omaha, NY Life and Northwestern Mutual.  The National Guardian Single Pay will be only $81,775.  This single pay option is also a very good option for you to consider if you have the means to write a single premium payment and be done. 

The National Guardian Life Underwriting Process

I will characterize National Guardian Life as a Preferred risk underwriter.  The comparison rates above that I illustrated are at the 2nd best available health rates with National Guardian.  (The NY Life and Northwestern Mutual rates above are at their very best health rate).  National Guardian will order medical records and a telephone health interview for all applicants.  The NGL underwriting process usually takes 5-6 weeks to complete. Generally speaking you should be in good health to consider applying for coverage to National Guardian.  If you have significant co-morbid health conditions requiring ongoing treatment, National Guardian might not be our best underwriter to approach for coverage.  Mutual of Omaha, for example, will often have more lenient underwriting guidelines for approval than National Guardian. I will pre-qualify all of my clients with my personal underwriters before we proceed with applications.  To fully discuss your health history with me to determine if you can expect to be approved for coverage, please all me directly at (800) 891-5824. We might need only 5 minutes by phone for me to share my opinion with you regarding your best options.

Should You Buy National Guardian Life Long Term Care Insurance?

Certainly if you seek to own long term care insurance, and you are attracted to the benefits of lower premiums that traditional LTC insurance policies will afford you when compared to hybrid long term care insurance, the National Guardian Life policy will be on your VERY short list of policy options to consider.  Certainly, if you are a couple applying together and you are each in good health, the NGL joint life policy will be your best option in most of the States.  (There may be a few State exceptions, New York and Montana for example where NGL EssentialLTC is unavailable). Even if you are single and are applying alone, the NGL pricing is still highly competitive and will most likely be the best long term care insurance pricing for you today in the marketplace.  The National Guardian LTC policy is very comprehensive with its benefit period options ( Shared 3rd Pool, Lifetime Unlimited benefits) and payment plan options (Single Pay, 10 Pay, Life pay) that you will certainly be able to tailor your benefits and premiums to your needs.

Receive customized long term care insurance illustrations and advice

Call me direct toll-free today at (800) 891-5824 to discuss your needs and receive customized illustrations from all of the leading long term care insurance underwriters.  In business for 23 years, I have access to the leading LTC insurance companies including National Guardian, Mutual of Omaha, OneAmerica, Nationwide, Securian, Pacific Life, Lincoln, Global Atlantic, Brighthouse, and more.  Complete my easy online quotes request form or schedule a call with me using my online calendar. I look forward to working together with you!