The last bona fide individual Long Term Care carrier (John Hancock) left the LTC market 12-2016. Why has every carrier of importance left the LTC marketplace? Quite simply; Lack of profitability due to fewer sales in a continually shrinking market. Why weren’t consumers purchasing LTC? Quite simply: Too costly, stringent underwriting and the specter of possible future premium increases.
Fortunately, your clients can still purchase in essence a Long Term Care policy, via the purchase of a Life policy that includes a Chronic Illness (LTC) rider. By doing so your clients can obtain the following benefits:
 | A Universal Life policy that provides access to the Death Benefit, even prior to insured’s death, in the event of Chronic Illness and/or Terminal Illness. If insured develops a Chronic/Terminal Illness they can accelerate the policy’s death benefit to pay for their care. |
| And/or Upon insured’s death, the policy provides the designated beneficiary with the life insurance benefit. |
| A UL policy that provides a No-Lapse Guarantee. Thereby ensuring that the premium for a Chronic Illness/LTC rider will never increase. |
| LTC riders are not underwritten based on morbidity, so many of your clients who would hitherto have been a decline, may be issued a life policy with an LTC rider. |
| No receipts required (indemnity plan). |
| Predictable benefit amount. |
| Waiver of monthly deduction while on claim. |
| Familiar benefit trigger: unable to perform 2 out of 6 ADL’s (Activities of Daily Living) |
No LTC certification is required by agents to sell these plans. We offer the following NY carriers whose GUL products offer a true LTC rider: Prudential (offers age last birthday rates) and Nationwide. For non-NY residents we offer American General and Prudential. American National also offers a GUL product with chronic illness rider included at no additional cost, albeit their rider is not as comprehensive as our other carriers.
