Life Insurance with Long-Term Care (LTC)
Ancestry offers a voluntary life insurance plan with long-term care (LTC) through Chubb to help you with your financial planning for long-term care needs.
What is LTC?
As the population ages over the next decade, 70% of those turning 65 will have a health event that will require a caregiver, assisted living, or nursing home. LTC benefits can help cover costs, allowing people to receive the care they need without depleting their life savings or burdening family. Depending on where you live, a nursing home in the United States can cost, on average, $50k to $100k per year or much more in many parts of the country.
Why should I consider LTC?
With an increase in the LTC demand and a decrease in providers, the cost of care is skyrocketing, and states are feeling the pressure of finding a solution. California and Utah are among the states considering legislation to mandate LTC coverage through an employee-funded program, potentially through payroll taxes. While there is no specific information on any potential state programs yet, we know that a consideration may be allowing individuals who have qualified private coverage the ability to opt out of a state program. Washington is the only state that has implemented a state plan so far, requiring all Washington workers to pay a 0.58% payroll tax. Workers who enrolled in private coverage, like the one we are offering, were able to opt out of the payroll tax.
Major medical, disability, Medicare, and Medicaid provide limited coverage, if at all, resulting in individuals depleting their assets to pay for care. LTC coverage is an important part of financial planning, and our new benefit offering is meant to be a starting point to help address it.
How It Works
Chubb’s plan provides the flexibility of having both permanent life insurance and long-term care coverage.
- Use funds from the death benefit, while living, to pay for qualifying long-term care expenses. If you use the full LTC benefit, your beneficiaries receive 50% of the death benefit you elected.
- If you don’t need to activate the LTC rider, your beneficiaries receive the policy’s full death benefit in the event of your death.
Example: You elect coverage with a $100,000 death benefit.
- You can pull $4,000 per month for 25 months for long-term care.
- If you still require long-term care after 25 months, Chubb’s policy resets and pays the same monthly LTC benefit for an additional 25 months.
Your rates will depend on your age and coverage level.