FAQs

  1. What is Universal Life Insurance with Long Term Care (LTC) benefits and what does it cover?

    Universal Life Insurance with a Long Term Care rider is permanent Life Insurance (not term insurance) that combines the benefits of both Life Insurance protection for your family along with living benefits, which can be utilized to help pay for long term care such as home healthcare, adult day care, assisted living facilities and nursing home expenses. Long Term Care is personal care - help with everyday activities such as bathing and dressing (also known as "Activities of Daily Living”) and/or care for severe cognitive impairments like Alzheimer’s Disease.

  2. What is the difference between Long Term Care and Long Term Disability insurance?

    Long Term Care benefits helps cover the cost of a nursing home, assisted living, adult day care or home health care if you become unable to care for yourself. Long Term Disability insurance replaces a portion of the income you will lose if you are unable to work because of an injury or illness.

  3. Why does the application require my SSN, height, and weight?

    The insurance company requires SSN to set up the policy as it is used for tax purposes and claims. If applicable, height and weight are used in underwriting if you are ineligible for Guarantee Issue underwriting and are required to answer health questions.

  4. Can I add my spouse or domestic partner?

    Yes, spouses and domestic partners are eligible to apply. If your spouse/domestic partner also works for this employer they should apply as an “employee”, to qualify for Guarantee Issue underwriting (no health questions). Guarantee issue is available for employees age 18-64.

  5. Ex-patriot: If I am an Ex-pat, can I apply?

    Ex-patriots who do not reside in the United States during the initial offering will be eligible to apply upon your return to the United States. You will have a 30 day window to apply with Guarantee Issue (no medical questions) up to applicable amounts and subject to the guidelines outlined under question

  6. How does this universal Life Insurance with Long Term Care (LTC) work?

    • Applicants ages 18-64 will be issued universal Life Insurance that provides a higher death benefit during your working years, when your needs, responsibilities and expenses are at their greatest. When you turn 70 or 15 years from the original effective date of the policy (whichever is later), the death benefit reduces to 1/3 your original amount.
      • This policy also includes a Long Term Care benefit that can help you pay for LTC services in your home and/or a facility at any age. This LTC benefit never reduces due to age, so the full amount is always available when you most need it.
    • Applicants ages 65-70 will be issued a standard universal Life Insurance policy, where the death benefit will remain unchanged and will not reduce to 1/3 of the original death benefit at age 70.
      • This policy also includes a Long Term Care benefit that can help you pay for LTC services in your home and/or a facility at any age. This LTC benefit never reduces due to age, so the full amount is always available when you most need it.
    • Applicants ages 71-75 will be issued a standard universal Life Insurance policy where the death benefit will remain unchanged and will not reduce to 1/3 of the original death benefit.
      • This policy will NOT include Long Term Care coverage.

  7. How much universal Life Insurance can I purchase and how is my monthly Long Term Care benefit calculated?

    • The policy options for employees and spouses/domestic partners are $10,000 up to $300,000 (in $25,000 increments from $25,000 to $300,000).
    • The monthly Long Term Care benefit is 4% of the death benefit and can be used for homecare and/or facility care for up to 50 months. For example, a $50,000 Life Insurance policy provides a $2,000 monthly LTC benefit. A $300,000 Life Insurance policy provides a $12,000 monthly LTC benefit.
      • Note: LTC is not available for applicants ages 71 to 75.

  8. How long does the policy provide Long Term Care benefit payments?

    This policy includes Extension of Long Term Care benefits which will allow for up to 50 months of payment for Long Term Care services. The maximum amount of Long Term Care payments is equal to two times the original death benefit amount.
    • Example: A $50,000 Life Insurance policy would pay out 4% ($2,000 per month) for LTC payments for up to 50 months resulting in a $100,000 maximum LTC benefit.

  9. When I start receiving LTC benefits, does the death benefit decrease as each monthly LTC benefit is paid out?

    Yes, the death benefit is accelerated (reduced) to pay each monthly LTC benefit. For example, a $50,000 policy provides a $2,000 monthly LTC benefit. After the first monthly LTC benefit is paid, the net death benefit would be $48,000. This depletion of the death benefit continues as LTC benefits are paid out.
    • This policy includes a dollar-for-dollar restoration of death benefit which restores the death benefit. See below.

  10. Does the policy provide a way to “replenish” or restore my death benefit as LTC benefits are paid?

    • Yes, it includes a monthly dollar-for-dollar restoration of the death benefit as each monthly LTC benefit is paid out. Here is how it works. A $50,000 policy provides a $2,000 monthly LTC benefit. After the first monthly LTC benefit is paid, the net death benefit would be reduced to $48,000 - only to be restored back to the original $50,000 death benefit.
    • The total maximum benefit of your policy could triple with this death benefit restoration feature. For example, with a $50,000 policy, you can receive up to $100,000 in LTC benefits + $50,000 in death benefits paid to your beneficiary(s) for a total maximum benefit of $100,000. When you turn 70 or 15 years from the original effective date of the policy (whichever is later), the death benefit reduces to 1/3 of the original amount. The Long Term Care benefit is not reduced.

  11. How is my rate determined?

    This insurance offers unisex rates based on your age as of the policy effective date, tobacco usage (cigarettes only) and coverage level selected.

  12. Can I pay the monthly premium with a credit card?

    No. The premiums must be paid via bank draft from a checking or savings account.

  13. When will my first premium payment occur?

    Your first premium payment via bank draft will be 12/22/2023.

  14. Are the premiums pre-tax or post-tax?

    Your premiums are paid post tax.

  15. Do premiums continue when on LTC claim?

    The policy has Waiver of Premium provision, which means that while you receive LTC benefits, all premiums are waived.

  16. What is my 30-day Free Look Period, and when does it begin?

    You may return your certificate within thirty days after delivery if you are not satisfied with it for any reason. Upon surrender of the certificate within the thirty-day period, it will be void from the beginning and any premium paid will be refunded.

  17. What if I cancel my policy outside of the 30-Day Free Look Period? Do I get my money back?

    If you cancel the policy after the 30-Day Free Look Period, you will receive any Cash Value minus any applicable policy surrender fees.

  18. What are the questions employees need to answer for underwriting?

    Coverage Type Employee Age Life Insurance Benefit Selected by you Underwriting Questions
    Employee Guarantee Issue 18 – 64
    $10,000
    $100,000
    $25,000
    $125,000
    $50,000
    $150,000
    $75,000
    No Health Questions Required
    (Note – only applicable at initial enrollment or when newly hired)
    Employee Modified Guarantee Issue 18 – 64
    $175,000
    $200,000
    1. Is any person to be insured now disabled, been seen by a physician, or treated in a medical facility, including a doctor’s office, within the last 6 months for illness or disease (other than flu and colds)?
    2. Has any person to be insured been treated for, or diagnosed by a member of the medical profession as having Acquired Immune Deficiency Syndrome (AIDS) or tested positive on an AIDS or HIV test? If applicant qualifies for Guarantee Issue.
    3. NOTE: If you answer yes to either health question, you will be required to answer additional medical questions and go through an underwriting process. However, if you are declined by underwriting, you will still be eligible for the Employee Guarantee Issue maximum benefit amount.
      4. (Note – only applicable at initial enrollment or when newly hired)
    Employee Simplified Issue 18 – 64
    $225,000
    $250,000
    $275,000
    $300,000
    1. Is any person to be insured now disabled, been seen by a physician, or treated in a medical facility, including a doctor’s office, within the last 6 months for illness or disease (other than flu and colds)?
    2. Has any person to be insured been treated for, or diagnosed by a member of the medical profession as having, Acquired Immune Deficiency Syndrome (AIDS) or tested positive on an AIDS or HIV test?
    3. Has any person to be insured:
      1. Had, within the past 5 years: heart disease; chest pains, high blood pressure; stroke; diabetes; cancer; tumor; kidney disease; blood disorder (excluding any testing for HIV antibodies); liver disease; lung disease; or other known health impairments?
      2. Within the past 10 years received medical treatment or counseling, or participated in a rehabilitation program, for alcohol or drug abuse?
      3. Seen a medical practitioner in the past 12 months for anything other than a routine physical exam?
    4. NOTE: Employees between ages 18-64 that are declined by Simplified underwriting will still be eligible for the Employee Guarantee Issue maximum benefit amount.
    Employee Simplified Issue 65 – 75
    Any coverage amount from $10,000 to $300,000

  19. If I answer “Yes” to any Simplified Issue health questions, will I be declined coverage?

    A “Yes” answer to any of the health questions will NOT preclude you from continuing the application process. Trustmark will evaluate your eligibility for coverage. (Only applicable for those applying with GI at initial enrollment.)

  20. Can I increase my universal Life Insurance policy at a later date?

    Yes, you can request to increase your existing universal Life Insurance policy at a later date (after your 30-Day Free Look Period) with Simplified Issue underwriting. If approved, the increase in coverage will be based on your current (attained) age at the time of the increase.

  21. What is E-Z Value?

    Your policy also includes an EZ value option to automatically increase your coverage over time – without any medical questions. An additional premium of $1 per week (approx. $4.33/month) will be added to your monthly premium payment.

    Prior to your policy anniversary date, Trustmark will send you a letter at home outlining your new benefit amount. No action is required on your part and this increase in your benefit is automatic. The increase in the benefit amount will be based on how much additional coverage you can purchase at your new age each year.

    You will receive this option annually for up to 10 years unless the option is declined. If you wish to decline the increase in premium and benefit amount, you will need to contact Trustmark directly upon receipt of the letter. By declining this increase, all future scheduled increases will be forfeited.

  22. What are the LTC Benefit Triggers within the policy?

    • You become eligible for Long Term Care benefits once you have satisfied the 90 Day Elimination Period, your physician has submitted a Plan of Care stating LTC services are medically necessary and certifies that you require assistance with at least two of the Activities of Daily Living (ADLs) or have a Cognitive Impairment.
    • To satisfy the Elimination Period, 90 days of LTC services must be rendered within six (6) months or else a new 90 Day Elimination Period begins.
    • Activities of Daily Living (ADLs) are Eating, Dressing, Bathing, Going to the Toilet, Continence, and Transferring. Note: Under the policy, Cognitive Impairment can be the only benefit trigger needed for benefits to begin to pay. This is extremely important because most people with Alzheimer’s or Dementia can still bathe, dress, and feed themselves but need supervision and might need to be in a facility.

  23. How does the policy pay LTC benefits?

    Long Term Care Facility and Assisted Living Facility Benefit:
    • Once eligible for LTC benefits, the insurance company will pay the Long Term Care facility or the assisted living facility benefit for each month the insured remains confined in a Long Term Care or assisted living facility, following the Elimination Period, for up to 50 months for all Benefit Periods combined. For a partial month of confinement, benefits are payable on a pro-rata basis; One thirtieth (1/30) of the monthly benefit will be paid for each 24-hour day of confinement. If a new confinement is within the same Benefit Period as a previous confinement, benefits are resumed at the previous amount of monthly benefit.
    Home Health Care and Adult Day Care Benefit:
    • The insurance company will pay a benefit for home health care or adult day care for each month the insured receives such care, following the Elimination Period, for up to 50 months for all Benefit Periods combined. Benefits are payable on a pro-rata basis. One thirtieth (1/30) of the monthly benefit will be paid for each day of home health care or adult day care.

  24. Can the policy provide LTC benefits for care provided by unlicensed/informal caregivers such as family or friends?

    If you qualify for LTC benefits, where you receive care is up to you (at home, assisted living, adult day care, nursing home).

  25. Where does the policy pay for care?

    If you qualify for LTC benefits, where you receive care is up to you (at home, assisted living, adult day care, nursing home).

  26. Will the policy pay for care outside of the US?

    The universal Life Insurance policy will only pay LTC benefits for care received in the United States or Canada. Death benefits are paid internationally.

  27. Are my LTC benefits taxable?

    Benefits paid may or may not be taxable. Whether or not you or your Beneficiary incur a tax liability when benefits are paid depends on how the IRS interprets applicable portions of the Tax Code. As with all tax matters, you should consult your personal tax advisor to assess the impact of this benefit. The insurance company has no responsibility for any tax consequences of any benefits paid under this policy. The rider for long term care insurance is not intended to be a federally qualified long term care insurance contract.