- A chronically ill individual means an insured who has been certified by a licensed health care practitioner within the preceding twelve-month period as: (1) being unable to perform, without substantial assistance from another person, at least two activities of daily living due to a loss of functional capacity for a period of at least 90 days; or (2) requiring substantial supervision to protect the insured from threats to health and safety due to severe cognitive impairment.2. Recertification by a licensed health care practitioner that the insured is chronically ill will be required, at minimum, on an annual basis.
- Distributions under this agreement, as with any policy loans and withdrawals, may create an adverse tax result in the event of a lapse or policy surrender, and will reduce both the surrender value and death benefit. Depending on actual policy experience, the policy owner may need to increase premium payments to keep the policy in force. The policy will not lapse while LTCA benefit payments are being made.
- Recertification by a licensed health care practitioner that the insured is chronically ill will be required.
Please keep in mind that the primary reason to purchase a life insurance product is the death benefit.
Life insurance products contain charges, such as Cost of Insurance Charge, Cash Extra Charge, and Additional Agreements Charge (which we refer to as mortality charges), and Premium Charge, Monthly Policy Charge, Policy Issue Charge, Transaction Charge, Index Segment Charge, and Surrender Charge (which we refer to as expense charges). These charges may increase over time, and the policies may contain restrictions, such as surrender periods. Variable life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods. There may also be underlying fund charges and expenses, and additional charges for riders that customize a policy to fit individual needs. Charges and expenses may increase over time. The variable investment options are subject to market risk, including loss of principal.
The purpose of this material is the solicitation of insurance. An insurance agent or company will contact you.
Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender, and will reduce both the surrender value and death benefit. Withdrawals may be subject to taxation within the first fifteen years of the contract. Clients should consult their tax advisor when considering taking a policy loan or withdrawal.
The Long-Term Care Agreement is a life insurance policy agreement that provides an option to accelerate the death benefit in the event that the insured becomes chronically ill.
The Long-Term Care Agreement may not be available in all states. Coverage provided by the Long-Term Care Agreement can be included on select life insurance products. These life insurance products may not be available in all states.
This agreement has exclusions, reductions, limitations, and terms under which the Long-Term Care Agreement may be continued in force or discontinued. For costs and complete details of coverage, contact your agent/representative.
The Long-Term Care Agreement is a life insurance policy agreement that provides an option to accelerate the death benefit in the event that the insured becomes chronically ill. The insured will be underwritten for this coverage.
The Long-Term Care Agreement is a tax qualified long-term care agreement that covers care such as nursing care, home and community-based care, and informal care as defined in the agreement. This agreement provides cash indemnity benefit payments for qualified long-term care services. This agreement is intended to provide federally tax qualified long-term care insurance benefits under Section 7702B of the Internal Revenue Code, as amended. However, due to uncertainty in the tax law, benefits paid under this agreement may be taxable. You should consult your tax advisor regarding long-term care benefits, or when taking a loan or withdrawal from a life insurance contract.
The Long-Term Care Agreement may not cover all of the costs associated with long-term care that the insured incurs. This agreement is generally not subject to health insurance requirements. This product is not a state-approved Partnership for Long Term Care Program product and is not a Medicare Supplement policy. Receipt of a long-term care benefit payment under this agreement may adversely affect eligibility for Medicaid or other government benefits or entitlements.
The death proceeds and accumulation value will be reduced by a long-term care benefit payment under this agreement. Please consult a tax advisor regarding long-term care benefit payments or when taking a loan or withdrawal from a life insurance contract. Death proceeds will be reduced by outstanding loans and unpaid monthly deductions.
Additional agreements may be available. Agreements may be subject to additional costs and restrictions. Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements.
This information is a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances.
These materials are for informational and educational purposes only and are not designed, or intended, to be applicable to any person’s individual circumstances. It should not be considered investment advice, nor does it constitute a recommendation that anyone engage in (or refrain from) a particular course of action. Securian Financial Group, and its subsidiaries, have a financial interest in the sale of their products.
Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York authorized insurer. Minnesota Life is not an authorized New York insurer and does not do insurance business in New York. Both companies are headquartered in St. Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues. Variable products are distributed by Securian Financial Services, Inc., member FINRA, 400 Robert Street North, St. Paul, MN 55101.
Securian Financial is the marketing name for Securian Financial Group, Inc., and its subsidiaries. Minnesota Life Insurance Company and Securian Life Insurance Company are subsidiaries of Securian Financial Group, Inc.
This is for financial professional use only. Not for use with the general public. This material may not be reproduced in any form where it is accessible to the general public.
Policy form numbers: ICC24-20297, 24-20297 and any state variations; ICC19-20204, 19-20204 and any state variations; ICC18-20149, 18-20149 and any state variations; ICC18-20150, 18-20150 and any state variations.