Overview: Hybrid Long-Term Care Insurance In California
If you ever wondered about hybrid long-term care insurance in California, look no further.
Hybrid Long-Term Care Insurance in California combines the benefits of long-term care insurance and life insurance into a single policy. The benefits that are created by this combination product are:
- Long-term care coverage in the event you need long-term care services
- A death benefit in the event you never need long-term care services &
- A return of premium if you ever decide to cancel
In addition to these three great benefits, hybrid long-term care insurance premiums are also guaranteed! That means you never have to worry about an increase in premium once your policy is in-force.
Now not all hybrid long-term care insurance products are available in California. In addition, the available products are slightly different in design than they are in other states.
All of these differences are due in part to the state of California’s insurance regulations.
Nevertheless however, this article will go over what hybrid long-term care insurance products are available in California and how each one essentially works.
Available Hybrid Long-Term Care Insurance In California
Below is a list of some of the most popular hybrid long-term care insurance products in California:
- OneAmerica AssetCare
- Pacific Life Premier Care
- Lincoln MoneyGuard
- Nationwide CareMatters
Now let’s jump right in and go over each products design, special features, and how they pay benefits. We will begin with OneAmerica Asset Care.
OneAmerica Asset Care in California
Like all hybrid long-term care insurance in California, OneAmerica Asset Care in California works by providing benefits in three ways:
- It pays for long-term care services if you need care
- If care you don’t need care, the asset passes onto your heirs creating a legacy
- It offers to return a portion of your premium if you ever change your mind.
Therefore, OneAmerica Asset Care operates like your standard Hybrid Long-Term Care insurance policy.
OneAmerica Asset Care in California – Special Features
Now OneAmerica’s Asset Care is the only hybrid long-term care insurance in California that offers unlimited lifetime benefits!
Also, OneAmerica’s Asset Care in California is the only hybrid long-term care insurance in California that offers spouses a joint policy.
That means spouses can apply for joint coverage on a single policy AND each receive unlimited lifetime benefits!
Both parties would never outlive their long-term care benefits which is great!
In regards to underwriting, OneAmerica Asset Care in California offers spouses joint class and joint equal age ratings.
“What does that mean?”
Well, with the joint class feature, a healthy spouse may be able to help a not so healthy spouse qualify for coverage.
Also, with the joint equal age feature, a younger spouse may help lower the premium for an older spouse if they apply jointly.
Both underwriting features can be very helpful for spouses given their situation.
Lastly, OneAmerica Asset Care in California offers an inflation protection option. This allows for your monthly long-term care benefit to increase over the years and keep up with the cost of inflation.
One drawback however is the inflation protection option is not applied to the Acceleration of Benefits Rider. This means that your benefit payments may be lower in the early years until the Continuation of Benefits Rider begins.
Payment of Benefits
Now OneAmerica Asset Care is a reimbursement policy. Therefore, you must submit bills or receipts of your long-term care expenses in order to receive benefits.
OneAmerica Asset Care also has a 30-day elimination period before you can receive benefits for home health care services. This is good as other companies require a 90-day elimination period.
Altogether, OneAmerica Asset Care in California can make a great hybrid long-term care insurance option for the right individuals.
Now let’s move to some of the other hybrid long-term care insurance options available in California.
Pacific Life PremierCare Advantage in California
Pacific Life’s PremierCare is as simple a hybrid long-term care insurance policy as you can get. It does not have much features that make it stand out.
Here’s how it works:
- In the event you need long-term care, it provides a long-term care benefit
- If you pass without ever needing care, it provides a death benefit to your loved ones
- If you ever change mind, it offers a 100% return of premium
Besides being a hybrid long-term care insurance policy, there aren’t many features to discuss regarding this product. Nevertheless, let’s take a look at what it has to offer.
Pacific Life Premier Care (California) – Special Features
First, Pacific Life Premiere Care Advantage has a first-day 100% return of premium. This may allow for the insured to get a full return of premium from Day 1 if they ever change their mind and surrender the policy.
Also, Pacific Life Premiere Care in California only allows for a single premium payment. Therefore, with this product, you cannot make premium payments over time.
While this may not be a feature, it is still noteworthy for anyone considering this policy.
Lastly, Pacific Life Premier Care Advantage in California offers inflation protection options of either 3% simple, 5% simple, or 5% compound interest.
This helpful as it allows for your benefit pool to grow over the years.
Payment of Benefits
Now Pacific Life PremierCare Advantage in California is a reimbursement. This means you must submit bills or receipts of long-term care services in order to receive your benefits.
This product has a standard 90-day elimination period.
As you can see, this policy is not all that unique. However, it is still a solid product offering for anyone interested in hybrid long-term care insurance in California.
Now let’s take a look at the more popular Lincoln Financial MoneyGuard product.
Lincoln Financial MoneyGuard in California
(Please note Lincoln Financial’s MoneyGuard in California has been updated to “MoneyGuard II”)
Lincoln Financial MoneyGuard II offers the standard hybrid long-term care insurance protection.
- LTC insurance in the event you need long-term care
- A death benefit in the event you never need care
- A return of premium option if you change your mind
Therefore, let’s discuss some of its features to see what sets it apart.
Lincoln Financial MoneyGuard (California) – Special Features
Lincoln Financial MoneyGuard II stands out in California due to its unique “No Elimination Period” benefit.
This benefit offers no elimination period for all eligible claims! Therefore, you can begin to receive benefit payments from your first day of claims which is great!
Lincoln Financial MoneyGuard II in California also offers a built-in 80% return of premium. You can elect to get a 100% return of premium if you choose. Unfortunately however, it comes at a cost.
Lastly, Lincoln Financial MoneyGuard II is one of the only long-term care insurance products in California that offers a 3% compound inflation option.
I really like the 3% compound option as it offers a great way to grow your benefit pool at an affordable cost.
Hence, Lincoln Financial MoneyGuard II is definitely a product worth considering for any California resident!
Payment of Benefits
Lincoln Financial MoneyGuard is a reimbursement policy. Therefore, benefits are paid based on your submission of bills or receipts of long-term care expenses you incurred.
However, as previously stated, Lincoln Financial MoneyGuard offers no elimination period for eligible claims. Therefore, you can receive benefits from the time you need long-term care services.
Let’s take a look at our last and final product, Nationwide CareMatters!
Nationwide CareMatters in California
Last but not least is Nationwide CareMatters in California. Nationwide CareMatters provides the benefits you should expect in any hybrid long-term care insurance policy. It provides:
- Cash Benefits to pay for long-term care services
- A valuable death benefit in the event you never need care
- A useful return of premium option if you ever change your mind
Now let’s see what makes Nationwide CareMatters so special in California.
Nationwide CareMatters in California – Special Features
Nationwide CareMatters is currently the only long-term care insurance product in California that offers a 100% cash indemnity benefit!
That’s right, Nationwide CareMatters in California offers cash benefit payments!
There is no need to submit receipts or bills of services in order to receive benefits. Nationwide pays all benefits directly to you the insured!
Therefore, you are given great flexibility and freedom in how you use your benefits. You can use your benefits however you’d like!
Now besides the cash benefit, Nationwide CareMatters in California also offers a built-in 100% return of premium option. This is a great option to have as it offers added peace of mind.
In regards to an inflation protection option, Nationwide CareMatters offers an inflation protection option of 3% simple interest or 5% compound interest.
This will definitely allow your benefit pool to grow over time.
Lastly, Nationwide CareMatters offers one of the highest guaranteed minimum death benefits. This definitely gives this product an added touch.
I would argue that Nationwide CareMatters is definitely a contender for California residents looking for long-term care insurance!
Payment of Benefits
Again, Nationwide CareMatters offers a cash benefit payment. There is no need to submit bills or receipts.
In order to receive benefits, you must have a licensed healthcare practitioner certify that you are “chronically ill.”
One you are certified, you must complete the claims paperwork and satisfy the 90-day elimination period.
After this is completed and your claim is approved, you will begin to receive your cash benefits. The process is pretty straightforward.
Now let me conclude by offering you a ranking of these products from best to worst.
Best Hybrid Long-Term Care Insurance In California
With all these great hybrid long-term care insurance products available to California residents, I decided to rank them from best to worst. Here are my rankings:
- Nationwide CareMatters
- Lincoln Financial MoneyGuard
- OneAmerica Asset Care
- Pacific Life Premier Care Advantage
In first place is Nationwide CareMatters. For many folks, it’s just hard to beat a cash benefit policy like Nationwide CareMatters. The ability to receive your long-term care insurance benefits as direct payments is always a plus.
Nevertheless, Lincoln Financial MoneyGuard comes in at a close second. The combined “no elimination period” benefit and the 3% compound inflation option allows for a solid policy at a reasonable cost.
In third place was OneAmerica Asset Care. OneAmerica Asset Care offers couples unlimited lifetime benefits. It is a true long-term care insurance policy in that regard. In addition, the joint policy allows for favorable underwriting for spouses in certain situations. The only downside to OneAmerica Asset Care is their limited inflation protection options.
Lastly, Pacific Life PremierCare is ranked fourth due to its lack of features. However, you can likely get more benefits from its competitor for the same amount of premium. Nevertheless, I do not discount the product as it still offers great protection to those who qualify.
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