The Life Insurance Policy With A GROWING LTC Monthly Benefit

The Life Insurance Policy With A GROWING LTC Monthly Benefit

Clients in their 40s and 50s buying Life Insurance policies today with an LTC rider, may not even activate that rider for another 20 or 30 years, so having an increasing LTC monthly benefit provides great value.

The Genworth 2017 Cost of Care Survey stated that LTC expenses increase 3-4% every year, based on home care or facility care.

Today, AXA Equitable UL products are the only policies that provide growing LTC rider benefits.

AXA Equitable allows a client to add an Option 2 death benefit on their life insurance policy from day 1

This not only increases the death benefit amount, but it also grows the monthly LTC benefit the client has access to. The monthly benefit is accelerated based on the obtained death benefit in the year that rider is activated. AXA has the LTC rider option to accelerate 1, 2 or 3 percent of the death benefit.

Below pricing in the GOLD BOX shows what the monthly LTC benefit and death benefit would grow to for a client at attained age 80 funding the AXA IUL Protect product at $1,000 a month.

A 50 year old male client’s initial monthly LTC benefit starts at $11,538. By age 80 it will more than double to $31,844. These rates are based on current 2018 pricing of this product.

Now the client can have the peace of mind that their monthly benefit for LTC expenses can grow alongside the increasing costs for Long-Term Care expenses.

Gender Rate Class Age Monthly premium Initial DB Initial LTC monthly benefit DB at age 80 LTC monthly benefit at age 80
Male Preferred NS 55 $1,000 $288,137 $8,644 $765,426 $22,962
Male Preferred NS 50 $1,000 $384,618 $11,538 $1,061,474 $31,844
Male Preferred NS 45 $1,000 $516,733 $15,501 $1,468,891 $44,066
Male Preferred NS 40 $1,000 $673,212 $20,196 $1,929,559 $57,886
 
Gender Rate Class Age Monthly premium Initial DB Initial LTC monthly benefit DB at age 80 LTC monthly benefit at age 80
Female Preferred NS 55 $1,000 $325,694 $9,778 $787,647 $23,629
Female Preferred NS 50 $1,000 $437,580 $13,127 $1,095,625 $32,868
Female Preferred NS 45 $1,000 $593,372 $17,801 $1,526,029 $45,780
Female Preferred NS 40 $1,000 $777,382 $23,321 $2,026,765 $60,802

AXA IUL Protect product, Min NON-MEC face solve, Option 2 DB, illustrating 6.08%, 3% LTC rider as of 12/18.