Actuarial Strategies underwriting and claims services, client needs, market requirements, pricing and risk issues, project parameters and implementation requirements

Long Term Care in life contracts

LTC Riders eliminate the “use it or lose it” dilemma associated with standalone policies. (In a standalone LTC vehicle, the insured will not receive benefits if he dies before becoming chronically ill.)

The Pension Protection Act (PPA) of 2006 provides for extremely favorable income tax treatment of qualified Long Term Care Insurance Riders/Provisions attached to or part of Life Contracts.

Resources

ASI has been the industry leader in the design and development, financial analysis and comprehensive execution of combination products for over ten years, and has designed many of the most popular offerings available today.
Advanced market research provides insight into the needs of buyers and distributors, and enables more focused products to be developed.
Our tax expertise, both internal to the firm and working closely with respected Washington tax counsel, assures you of stringent adherence to legal and regulatory requirements.

Points to Consider

POTENTIAL LTC BENEFIT GROWTH. The death benefits grow with performance, and lead to higher LTC benefits.
LOCK-IN PROVISION. Lock-in provision at time of claim. Unfavorable investment performance cannot reduce benefit payments, for both life and LTC.
MODEST LTC INCREMENTAL COST.
SIMPLIFIED PRODUCT STRUCTURE. Implementation is much simpler.
NO BENEFIT COMPROMISES. The LTC Rider can provide the same benefits as a standalone vehicle.
EASIER CLAIMS HANDLING. Claims can be easily handled by TPA. Potential vehicle for insurers without standalone portfolio. No need to build a large claims unit.
MARKET OPPORTUNITY. An opportunity to penetrate an unsaturated market segment.
MINIMUM DEATH BENEFIT. Residual riders are available that guarantee there will always be a minimum death benefit in a life policy.
EXTENDED BENEFIT COVERAGE. Riders are available that provide for additional payments in case the life policy is completely paid out. Such extended benefit riders can significantly extend the coverage period.
AVAILABLE ON ALL PRODUCT CHASSIS.

For more information, e-mail us with your name, title and company name.