Long-Term Care Insurance (LTCI) Coverage Riders Metropolitan Life Insurance Company ( MetLife ) Planning for. Longevity. ADF# (rev.

Transcription

1 Long-Term Care Insurance (LTCI) Coverage Riders Metropolitan Life Insurance Company ( MetLife ) Planning for Longevity ADF# (rev.12/04)

2 AChoice of Coverage Riders Lets You Tailor Your Policy to Your Specific Needs One size fits all is not our approach. At Metropolitan Life Insurance Company ( MetLife ), we understand that not all individuals and couples have the same Long-Term Care Insurance needs. Instead, MetLife provides you with a choice of coverage riders that can help you tailor your policy to your current and future lifestyle needs. The available riders fall into these three basic categories: Benefit Increase Riders Policy Riders Flex-Pay Riders Learn how these coverage riders can add even more value to your Long- Term Care Insurance policy. 5% Automatic Compound Inflation Protection Rider (1) Benefits increase each year (on a compounded basis) with no corresponding rate increase With this rider, your Daily Benefit Amount and the balance of your Total Lifetime Benefit at the end of the prior policy year will automatically increase by 5% each year without a corresponding increase to your premium. The benefit increases continue even while you are benefit eligible. By purchasing Compound Inflation Protection now, you may not have to think about buying additional Long-Term Care Insurance coverage in the future to keep up with rising costs of care. With Automatic Compound Inflation Protection Rider Not all riders are available with all policies or in all states. 1 Not A Deposit Or Other Obligation Of Bank Not FDIC Insured Not Insured By Any Federal Government Agency Not Issued, Guaranteed Or Underwritten By Bank Or FDIC Not A Condition To The Provision Or Term Of Any Banking Service Or Activity Policy Is An Obligation Of The Issuing Insurance Company (1) In Wisconsin, a 3% Automatic Compound Inflation Rider is also available on all policies. (2) Not available in Indiana or Wisconsin, or with California, Connecticut, Indiana or New York Partnership plans. In Ohio this rider is referred to as the 5% Auto Simple Benefit Increase Rider.

3 Benefit Increase Riders Choosing one of these Benefit Increase Riders can help maintain the value of your coverage over time. Since Long-Term Care Insurance is something you likely will not need immediately, a Benefit Increase Rider can help ensure your coverage remains current with the costs of services. (If you do not select one of the Benefit Increase Riders, you will be issued a policy with no Inflation Protection.) 5% Automatic Simple Inflation Protection Rider (2) Benefits increase each year (on a simple basis) with no corresponding rate increase With this rider, your Daily Benefit Amount and the balance of the Total Lifetime Benefit you originally selected will automatically increase by 5% each year without a corresponding increase to your premium. The benefit increases continue even while you are benefit eligible. Simple Inflation Protection will allow your policy to keep up with future rising care costs without having to purchase additional coverage later. With Automatic Simple Inflation Protection Rider Future Purchase Rider (3) Gives you the ability to increase your coverage as needed in the future With this rider, your current Daily Benefit Amount and the balance of your Total Lifetime Benefit will increase by 5% every year (4) without your having to provide evidence of good health, unless you reject the offer in writing. The cost of any increase to your coverage will be based upon your age and premium rates at the time the increase takes effect. If you decline an increase offer two times in a row, you will no longer receive the offers automatically. (This option is not available when you choose any of the Flex-Pay Riders.) With Future Purchase Rider (3) Not available in Pennsylvania, or with California, Connecticut, Indiana or New York Partnership policies. (4) These increases will not be available to you if you are eligible for benefits under your policy on the date the increase is to take effect. 2

4 Policy Riders You can customize your Long-Term Care Insurance coverage by adding one or more of these valuable Policy Riders. Elimination Period ( EP ) Policy Riders To help keep premiums affordable, your benefits begin after the Elimination Period (5) (or waiting period) that you select. You only have to satisfy this period once in your lifetime, and the days do not have to be consecutive. Selecting one of the riders below may shorten your Elimination Period. Calendar Day Rider (6) With the Calendar Day Rider, once you are benefit eligible, each day you receive qualified care in your home or in the community, and even days you don t receive care, will count toward satisfying your Elimination Period for home care. This rider enables you to access your home or community-based care benefits sooner. Home Care Elimination Period Waiver (6) When you choose this rider, you have a zero day Elimination Period for home and community-based care. Therefore, you do not need to wait to receive benefits. This rider gives you fast access to your policy benefits. Additionally, the days that home care is provided count towards satisfying your Facility Care Elimination Period. Both, the Calendar Day Rider and Home Care Elimination Period Waiver include a Supplemental Items Allowance, which pays a maximum Lifetime Benefit Amount of up to 50x the selected Daily Benefit Amount for charges you incur for items such as durable medical equipment and home modifications (e.g., for wheelchair access). The Supplemental Items Allowance will be paid to you as soon as you are eligible for benefits (you do not need to satisfy your Elimination Period) and need equipment or home modifications that will allow you to live more comfortably. Couples Policy Riders (7) Designed specifically for couples, consider how the following riders can help you make the most of your policy benefits. Shared Care Rider (8) Maximize the value of your coverage when you apply with your spouse and choose the Shared Care Rider. This rider offers extra financial support, allowing you to share each other s Total Lifetime Benefit. Should one spouse need long-term care services and depletes his or her own Total Lifetime Benefit, he or she can tap into the Total Lifetime Benefit of the other covered spouse. The Shared Care Rider may also help upon the death of a spouse. When this happens, the deceased spouse s remaining Total Lifetime Benefit becomes fully available to the other spouse. This extra measure of financial support can be especially helpful if one of you has to face long-term care alone. Both spouses are required to purchase and maintain identical coverage. Paid-Up Survivorship Rider The Paid-Up Survivorship Rider provides financial relief for a surviving spouse when the other spouse dies. If the rider is in effect for 10 years and no benefits are paid to you or your insured spouse during this time, then the surviving spouse will be entitled to a paid-up policy when the other spouse dies. (5) The Premier policy uses Calendar Days to calculate the Elimination Period. (6) This rider not available with Facilities-Only and Premier Policies. (7) Couples includes spouses and, where permitted by law, Civil Union Partners and Domestic Partners. (8) May contain some limitations in certain states. 3

5 Additional Policy Riders Indemnity Rider (Available with Value policy only) The Indemnity rider pays your full Daily Benefit Amount each day a covered service is received regardless of the actual cost for that service. For example, if your services cost $100 a day and your Daily Benefit Amount is $150, MetLife will pay you the full $150 and you have $50 to spend as you see fit. Nonforfeiture Rider With the Nonforfeiture Rider, you can count on receiving benefits from your policy even if you cannot continue making your premium payments. As long as you have paid your premiums for at least three years (or your premiums have been waived), you will be entitled to a reduced Total Lifetime Benefit (the greater of the sum of all premiums paid or waived under the policy or 30x the Daily Benefit Amount). Return/Refund of Premium Rider (9) With this rider, all your Long-Term Care Insurance premiums, less any benefits paid or payable by MetLife, will be returned to your estate, or your designated beneficiary, upon your death as long as your policy has been in effect for ten policy years. Restoration of Benefits Rider (Not available with Premier policy) The Restoration of Benefits Rider restores all or part of your Total Lifetime Benefit should you recover from a benefit eligible condition or illness. As long as your Total Lifetime Benefit has not been exhausted and you have not been chronically ill for 180 days, you may be able to fully restore your Total Lifetime Benefit for future protection against longterm care expenses. (9) Not Available in New Jersey or Washington (state). 4

6 Flex-Pay Riders MetLife lets you customize the way you pay premiums to fit your present and future financial situation. Take a look at these four Flex-Pay Riders and consider which one is best for your budget. Ten-Year Premium Payment Rider Lets you pay up your policy in ten years Your policy becomes completely paid for on your 10th policy anniversary. Why you might choose this option You re a younger individual who knows the importance of purchasing coverage early in life, or you simply want to pay up your policy quickly. You have decided that paying more now makes sense financially for you and your family. Once you have paid your premiums for ten years, your policy will become completely paid up and will be accessible should you need to access benefits in the future. Paid-Up Premiums Rider Lets you pay up your policy at age 65 With this rider, your policy is considered fully paid-up on your policy anniversary following your 65th birthday or after ten years of payment, whichever comes later. Why you might choose this option If you are age 55, or younger, and planning for a comfortable retirement. By budgeting to pay increased premiums now while still earning an income, your policy will be paid up by your planned retirement. You like knowing your policy will be there for the long-term, but your premiums won t be. Ten-Year Premium Payment Rider Example: (10) Your premium without the rider: $1,000 Your premium with this rider: $2,880 Paid-Up Premiums Rider Example: (10) Your premium without the rider: $1,000 Your premium with this rider: $2,000 (Premiums are paid up after ten years) Above based on hypothetical illustration. These rates are not actual rates. Above based on hypothetical illustration. These rates are not actual rates. Notes: Choosing one of these Flex-Pay Riders still allows you to structure your payments monthly, quarterly, or annually. Regardless of which rider you choose, MetLife will track your discounts and premium adjustments for you. Your bills will automatically reflect your chosen discounts or reductions in premiums at the time they are scheduled to take effect. Choosing any of these payment riders may impact the tax-deductibility of your premium. Please consult your tax advisor for further clarification. Flex-Pay Riders may not be available with other policy riders. (10) Examples shown are for illustrative purposes only and do not take into account the time value of money (i.e., that because of inflation, a dollar in the future has less value than a dollar today). Premiums are based on age at the time of purchase and will vary with the amount of benefits selected. 5

7 Reduced-Pay at Age 65 Rider Lets you cut premiums in half at age 65 With this option, once you turn 65, you pay half the premium amount you paid for the policy before turning age 65. The reduced payments begin on the policy anniversary on or after your 65th birthday. Why you might choose this option You re concerned about keeping up with premium payments during retirement when you may be on a fixed income or simply want to use finances for things other than insurance premiums. Double-Pay First Year Rider Pay more initially, save later With this option, you pay twice your regular premium amount for the first policy year in return for an 8% or 10% premium discount (depending on age) off the regular premium amount for each year after the first. Why you might choose this option You re a price shopper who likes the idea of paying more up front, so that you can pay less each year thereafter. Doubling up your payment for just one year makes sense, because you can pay less in retirement. Reduced-Pay at Age 65 Rider Example: (10) Your premium without the rider: $1,000 Your premium with this rider until age 65: $1,400 Your premium at age 65* and beyond with this rider: $700 *Reduced premium takes place on your policy anniversary on or after your 65th birthday. Double-Pay First Year Rider Example: (10) Your first year premium without the rider: $1,000 Your first year premium with this rider: $2,000 Your premium the second year and beyond with this rider: $900 These examples are based on hypothetical illustration. These rates are not actual rates. 6

8 The MetLife Long-Term Care Insurance Company s ( MetLife ) Long-Term Care Insurance policies are guaranteed renewable. This means that once a policy is issued, it cannot be cancelled due to an increase in your age or a change in your health. Premium rates can only be raised as the result of a rate increase made on a class-wide basis in the state where the policy is issued and approved by the Department of Insurance. Like most Long-Term Care Insurance policies, MetLife s policies contain certain exclusions, limitations, elimination periods, reductions of benefits and terms for keeping them in-force. For complete costs and details, please contact your MetLife Representative/Insurance Agent/Producer. This advertisement describes coverage offered by MetLife policies. Depending on state availability, coverage may be offered by the following MetLife policies: LTC2-VAL, LTC2-IDEAL, LTC2-PREM, LTC2-FAC. In some states, coverage may be offered by the above-referenced policy number followed by the state s 2-letter abbreviation; the state s 2-letter abbreviation plus ML for Multi-Life policies; or the state s 2-letter abbreviation plus P for Partnership policies. LTC01959(BB)(1106) 2004 METLIFE, INC. L0411ENT2(exp0707)(xCA)MLIC-LD PEANUTS United Feature Syndicate, Inc. Metropolitan Life Insurance Company New York, NY