Markus
Member
Unum long term care insurance, also called universal life insurance, is a type of insurance that pays benefits to a beneficiary in the event that the insured dies during the coverage period. Unlike other types of insurance such as variable life or whole life insurance, this type of policy provides a steady income to the named beneficiary, unlike most forms of life insurance which are usually paid as a percentage of the death benefit, or as a lump sum. As a result, an investor who buys this insurance must be prepared to contribute to the monthly benefit in order to retain the policy and continue receiving payments.
Unum long term care insurance offers four different types of coverage. The first is full reimbursement with a monthly benefit; this is the standard policy for seniors who are not in their golden years. The second is a combination of the first and second options; in this case, a daily and monthly benefit is paid to the named beneficiary, and coverage is granted for both age and chronic illness. The third option is short term care coverage, or Sphauelex; this lasts for six years or less. The fourth option is lifetime coverage with no age limit; this is the most expensive option, but offers the greatest degree of protection. Lifetime coverage is only offered in individuals who are not currently eligible for Medicare.
A key feature of the policy is its ability to provide for daily living expenses while a person is still alive. While the policy does not pay expenses for a period after the policyholder has died, the beneficiary will receive all the money that the insured earned and paid during the coverage period. These include premiums and service charges, and any amounts that were paid out as a result of taking advantage of the long term care option. In addition, the beneficiary is entitled to receive benefits for any out of pocket expenses incurred by the insured while he or she was a patient in a nursing home, hospital, or other type of long term care facility, as well as any out of pocket expenses that resulted from the inability to work due to chronic illness caused by a medical condition.
Although it is not an absolutely necessary feature of any policy, most policies include coverage for a loss of income if the insured is disabled for a specific amount of time, typically at least six years. This guarantee issue is referred to as a guaranteed issue; it means that the insured will receive the same benefits every year without any increases. Another benefit provided by an Unum long term care insurance policy is the availability of in home caregivers. These are individuals who can come into the home to assist the insured when he or she is unable to perform daily activities. It is very common for families to designate one of these caregivers as the primary caregiver, and the rest use the guaranteed issue guarantee to choose their own caregivers.
Each individual policy will detail the level of benefits that will be available. Most policies will also specify the amount of reimbursement that will be given to the insured upon the death of the insured. Most often, this amount will be equal to the cost of maintaining an adult day care facility for the life of the insured. However, some companies offer the option of receiving full reimbursement up to the death of the policy holder. In addition, some companies will allow the insured to choose between receiving full benefits up front, or having the policy pay for the expenses up to the date of death.
As a result of these enhanced benefits, many families find that they are able to provide more for their loved ones with less expense. As an example, Unum long term care policies can be combined with other types of policies such as insurance, and the monthly benefit can be made part of the retirement plan of the employee. The monthly benefit can then be accessed for medical, legal, and other necessities, and then be paid directly out of the retirement account. Also, many employers offer additional benefits for both the employees and their family members, and may have a matching program for the monthly benefit. The increased value of a Unum policy relative to other types of policies also makes it a good choice for families who may need assistance for longer than just a few months.
Unum long term care insurance offers four different types of coverage. The first is full reimbursement with a monthly benefit; this is the standard policy for seniors who are not in their golden years. The second is a combination of the first and second options; in this case, a daily and monthly benefit is paid to the named beneficiary, and coverage is granted for both age and chronic illness. The third option is short term care coverage, or Sphauelex; this lasts for six years or less. The fourth option is lifetime coverage with no age limit; this is the most expensive option, but offers the greatest degree of protection. Lifetime coverage is only offered in individuals who are not currently eligible for Medicare.
A key feature of the policy is its ability to provide for daily living expenses while a person is still alive. While the policy does not pay expenses for a period after the policyholder has died, the beneficiary will receive all the money that the insured earned and paid during the coverage period. These include premiums and service charges, and any amounts that were paid out as a result of taking advantage of the long term care option. In addition, the beneficiary is entitled to receive benefits for any out of pocket expenses incurred by the insured while he or she was a patient in a nursing home, hospital, or other type of long term care facility, as well as any out of pocket expenses that resulted from the inability to work due to chronic illness caused by a medical condition.
Although it is not an absolutely necessary feature of any policy, most policies include coverage for a loss of income if the insured is disabled for a specific amount of time, typically at least six years. This guarantee issue is referred to as a guaranteed issue; it means that the insured will receive the same benefits every year without any increases. Another benefit provided by an Unum long term care insurance policy is the availability of in home caregivers. These are individuals who can come into the home to assist the insured when he or she is unable to perform daily activities. It is very common for families to designate one of these caregivers as the primary caregiver, and the rest use the guaranteed issue guarantee to choose their own caregivers.
Each individual policy will detail the level of benefits that will be available. Most policies will also specify the amount of reimbursement that will be given to the insured upon the death of the insured. Most often, this amount will be equal to the cost of maintaining an adult day care facility for the life of the insured. However, some companies offer the option of receiving full reimbursement up to the death of the policy holder. In addition, some companies will allow the insured to choose between receiving full benefits up front, or having the policy pay for the expenses up to the date of death.
As a result of these enhanced benefits, many families find that they are able to provide more for their loved ones with less expense. As an example, Unum long term care policies can be combined with other types of policies such as insurance, and the monthly benefit can be made part of the retirement plan of the employee. The monthly benefit can then be accessed for medical, legal, and other necessities, and then be paid directly out of the retirement account. Also, many employers offer additional benefits for both the employees and their family members, and may have a matching program for the monthly benefit. The increased value of a Unum policy relative to other types of policies also makes it a good choice for families who may need assistance for longer than just a few months.
