Securian Financial has a 140 year history of protecting families and offering quality insurance products. Today, one of their most notable products is their hybrid long-term care insurance called “SecureCare.”
Securian Financial SecureCare is definitely a stand out product in the long-term care insurance market. Unlike most long-term care insurance policies, SecureCare is a 100% cash indemnity product!
That’s right, with SecureCare, you can received your long-term care benefits as a 100% cash benefit. The only other company that offers a 100% cash indemnity option is Nationwide CareMatters.
Now SecureCare operates just like any other hybrid long-term care insurance policy. It offers:
- Long-term care benefits in the event you need services
- A death benefit if you pass without ever needing care
- A return of premium option in case you ever change your mind
Nevertheless, let’s take a detailed look and see how SecureCare works and it compares to other hybrid long-term care insurance products.
How Does Securian Financial SecureCare Work?
Securian’s SecureCare is a universal life insurance policy with a qualified long-term care insurance rider. It offers you protection and coverage in three ways:
- It offers long-term care benefits in the event you need long-term care
- There is a death benefit in the event you never need long-term care &
- There is a return of premium option if you ever change your mind
What makes SecureCare great is your money will work for you in some way or the other. You don’t need to worry about “using or losing it” with a Securian SecureCare policy.
As you see from the illustration above, your SecureCare policy always works towards providing you a benefit.
Now like all hybrid long-term care policies, SecureCare accelerates the policy’s death benefit to pay for long-term care. This death benefit is paid out as a “living benefit” to cover your qualified long-term care expenses.
After the accelerated death benefit is exhausted, a long-term care extension of benefits rider takes effect. This rider extends your long-term care benefits once you’ve exhausted the policy’s death benefit.
With both the Acceleration of Death Benefit and the Extension of Benefits Riders, a SecureCare policy can provide up to 7 years of long-term care benefits & protection!
What Services Does Securian’s SecureCare Cover?
Well since SecureCare is a 100% cash benefit product, it pretty much covers all forms of long-term care services available. Examples of long-term care services covered by SecureCare include:
- Home Healthcare
- Adult day care
- Assisted living
- Nursing home care
- Alternative care services
- Informal care from immediate family members or relatives
- Any LTC service existing today or developed in the future
Again SecureCare is a 100% cash benefit policy. When you qualify for care under your policy, Securian will send you monthly checks based on your policy’s benefits. Once received, you can use your monthly long-term care benefits however you see fit!
Securian Financial will never ask you for a receipt of how you use your benefits. This makes the claims and payment process seamless!
With such great benefits, let’s look at what are the qualifications needed to apply for a Securian SecureCare policy.
How Do I Qualify For A Securian Financial SecureCare Policy?
First, in order to qualify for a Securian SecureCare policy, you must be between the ages of 40-75. Applications for SecureCare are subject to underwriting and underwriting requirements.
The rate classes offered for Securian’s SecureCare are Single Non-Tobacco, Single Tobacco, Couples Non-Tobacco, & Couples Tobacco.
If you are married, you qualify for a Couples rate class. The Couples rate class also offers a Couples Discount even if your spouse does not apply for a policy!
Now let’s look at payment option for Securian Financial’s SecureCare
What Are The Funding Options For Securian SecureCare?
Securian Financial offers multiple funding options for their SecureCare product. They offer a single premium option as well as a 5, 7, 10, or 15 year premium payment option.
With multi-pay options, you must be done paying premiums by age 75. For example, a 60 year old can select a 15-year premium payment option. However, a 61 year old will not be able to select that option as their payments will exceed age 75.
With SecureCare, you can also use your HSA (Health Savings Account) to pay a portion of your premium. The portion of your premium related to long-term care benefits can be paid using your HSA.
Securian’s SecureCare offers great flexibility in how you fund your policy.
Key Features of Securian Financial’s SecureCare
Securian Financial’s SecureCare offers one of the most robust international benefits in the industry. Unlike other carriers, your long-term care benefit pool remains unchanged with SecureCare if you receive benefits overseas.
The only caveat is your monthly benefit is distributed at 50%. So for example, if your monthly benefit is $6,000, you will receive a $3,000 monthly benefit if care is received internationally. However, once again, you benefit pool remains the same. So if your benefit pool is $1,000,000, it will remain $1,000,000 even if care is received outside the U.S.
In order to receive benefits, an individual must first be seen by a doctor licensed to practice in the U.S. even if they plan to receive care internationally.
Cash Indemnity Benefits
Once again, Securian Financial’s SecureCare is the one of two long-term care insurance policies that offer 100% cash benefits. Cash Indemnity Policies do not require you to submit bills or receipts of your long-term care expenses in order to receive benefits.
This makes the claims filing process much easier for you and your loved ones if you ever needed care.
Now here’s how it works –
First, you must meet the policy’s long-term care claims requirements. This typically involves being certified as “chronically ill” by a licensed health practitioner
Afterwards, a 90-day elimination period must be satisfied before you can receive your first monthly benefit.
Your monthly benefits are paid to you at a set dollar amount based on the maximum LTC benefit you qualify for in your policy.
This is a really desirable feature in a long-term care policy as it allows you to use your benefit payments however you would like!
Full Return of Premium
Securian’s SecureCare also offers a 100% full return of premium on all their policies. While most individuals never utilize their return of premium option, it is still a good feature to have in a policy.
It offers the policy owner peace of mind that they retain the full value of their funds or assets placed in the policy. It also provides flexibility in the event your financial situation changes and you change your mind regarding SecureCare.
Now SecureCare policies are subject to a vesting schedule. Once the vesting schedule is complete, you can receive a full return of premium. (Return of premium are subject to policy loans, surrender values, etc.)
How Does Securian’s SecureCare Compare to Other Hybrid Products?
Now this is the million dollar question – “How good is SecureCare compared to other hybrid long-term care policies?” Well, I can tell you that SecureCare is competitive in 4 out of the 5 following categories:
- Long-Term Care Benefits – ✔
- Benefit Periods – ✔
- Inflation Protection Options – ✔
- Elimination Period
- Premium Payment Options – ✔
My only hiccup with Securian Financial’s SecureCare is their elimination period. Securian still has the standard 90-day elimination period. However, most carriers in the hybrid long-term care insurance space offer some sort of benefit in regards to the elimination period – no elimination period, retroactive benefits for the elimination period, etc.
Nevertheless after reviewing SecureCare, I find it to be highly competitive as a long-term care option. Let me show you what I mean. We will look at examples for a 55 year old male and female.
Case Study 55 Year Old Male And Female
Let’s say a husband and wife age 55 decide to place $60,000 each into a Securian policy. What will they get in return? Let’s look at some quotes:
Above is a quote for a male age 55 years old with a $60,000 premium deposit. For that $60,000 deposit SecureCare will provide him with a 6 year benefit period of $2,092/month and a 5% compound inflation option!
That 5% option stands out because or hybrid products would require a much higher premium deposit for a 5% inflation option.
Now the benefit amount will definitely increase with a guaranteed 5% inflation option. As a matter of fact, at age 80, the monthly benefit amount increased to $7,085. That’s over 3 times as much coverage as what is offered in the beginning of the policy.
In addition, let’s not forget that SecureCare pays a cash benefit. Therefore, if this individual went on claims at age 80, they would receive a check for $7,085. That’s cash benefits with no need to submit receipts or bills of any long-term care expenses!
Now let’s look at the same age 55 but this time for a female:
A 55 year old female with a $60,000 premium deposit can get an initial monthly benefit of $2,853 for 6 years with a 3% compound inflation option.
At age 80, due to the 3% compound inflation option, the monthly long-term ca benefit increases to $5,974. Now once again, this is a cash indemnity policy. All benefits are paid as a cash benefit with no need to submit bills or receipts of long-term care expenses.
Now let’s see how another cash indemnity policy, Nationwide CareMatters, compares to Securian’s SecureCare.
Here are the same quotes for a 55 year old husband and wife but this time with Nationwide CareMatters:
Nationwide CareMatters Comparative Quotes:
Above is a Nationwide CareMatters quote for a 55 year old male with a $60,000 premium deposit. While Nationwide CareMatters offers a 6 year benefit period just like SecureCare, a $60,000 budget doesn’t allow for a 5% compound inflation option.
If you revisit our SecureCare quote earlier in the article, a $60,000 premium deposit allowed for a 55 year old male to get a 5% compound inflation option. A 5% compound inflation option with Nationwide for a 55 year old male would require an additional $6,000 in premium deposit.
Therefore, Securian’s SecureCare edges out Nationwide CareMatters in this regard. Due to its 5% compound inflation, SecureCare can provide a monthly benefit of $7,085 at age 80 compared to Nationwide’s $6,300.
Let’s look at the 55 year old female now:
The Nationwide CareMatters quote offers a 55 year old female with a $60,000 premium deposit an initial monthly benefit of $2,647 for 6 years with a 3% compound inflation option.
At age 80, this benefit increases to $5,542 due to the 3% compound inflation option. Now the difference between SecureCare’s long-term care benefits and Nationwide CareMatter’s benefits for the 55 year old female is marginal.
SecureCare does slightly offer more in long-term care benefits as their initial monthly benefit offer was $2,853. This can be found in our SecureCare quote above. Again, this benefit would increase at age 80 to $5,974 which is more than what Nationwide CareMatters offers.
So what can conclude from all of this?
Securian Financial’s SecureCare Offers Solid Coverage
As we can see from our review and comparison of Securian Financial’s SecureCare, SecureCare is well-rounded hybrid long-term care policy. Between the 100% return of premium, international benefits, and most importantly the cash indemnity feature, SecureCare stands out as a long-term care insurance product.
Other products do offer unique features that may seem more appealing. However, if you are interested a cash indemnity feature with high long-term care benefit amounts, I would look at Securian Financial’s SecureCare.
The only drawback I would say about Securian is that their underwriting can be a bit more stringent. They sometimes pull an APS (medical records) for applicants and when they do, only about 60% of those applicants get approved.
Nevertheless, if you are in great health with no issues in your medical history, SecureCare may definitely be an option for you!
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