Susan Carlson, nationally recognized LTC expert, educator and workshop trainer introduces licensed LTC producers to one of the foundational cornerstones of personal insurance and builds a basic understanding of the product and the indemnification need that most Americans will require in their life.
We are going to spend the next few minutes discussing Mutual of Omaha’s long term care insurance policy, Mutual Care My Way. They also offer Mutual Care 3 & 5 which are pre-packaged products that offer simplicity and affordability. However, Mutual Care My Way is a customizable product providing flexibility and the ability to build a policy from ground up.
This product offers four underwriting classes, Preferred (15% premium discount), Standard, Class One (25% standard premium increase) and Class Two (50% standard premium increase). The product also offers several discounts including a 35% Spousal Discount if both spouses apply and accept their coverage. However, if one of them is declined, the discount would drop to 20% and if only one spouse applies, they would be able to receive a 20% discount.
Other discounts available are a 5% Association/worksite discount and a 5% discount if the client owns a Mutual of Omaha Medicare Supplement policy. This product is also one of the few products that offer an optional 5 year rate guaranteed for an additional premium.
Mutual of Omaha has several premium payment options including life pay, 10 year premium pay, 20 year premium pay, and a pay to age 65. This policy is a reimbursement policy however, it does offer a cash benefit option of 35% of the home health care benefit. A client can choose this at claim time in lieu of the 100% reimbursable benefit for home health care.
The monthly benefits allowed range from $1,500 to $15,000 and the benefit period options are 2, 3, 4, 5, 6, 8 years and unlimited. They offer a 0, 30, 60, 90, 180 and 365 calendar elimination periods. Your client has the ability to add the 0 day elimination period to home health care for an additional premium. This policy also offers different percentages for home health care and assisted living facilities.
Mutual of Omaha offers several riders including a Survivorship Rider, 5 year rate guarantee, Restoration of Benefits, Joint Waiver of Premium, Christian Science Provider, Injury rider and a Spousal Security Rider. This policy offers a Shared Care Rider which allows an insured to use another (spouses) policy benefits. However, at least one year of benefits has to remain for the healthy spouse.
This policy offers a Full Return of Premium which will return the insured’s entire premium (regardless of claims paid-out) upon their death to their beneficiary. The product also offer a Limited Return of Premium which will return the Premium less any claims paid out and a Return of Premium if the insured dies before age 65. These are available for additional premium.
Mutual of Omaha offers several inflation riders including, Future Purchase Option (automatically included if no inflation is chosen), 5% Simple, 3% compound, 4% compound, 5% compound and a 20 year 5% compound inflation rider.
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