National Life of Vermont

[Arthur Rudnick]

Has anyone heard about, or done business with this company?

They have a Life product with LTC benefits built in. It is unlike a Money Guard, a life policy with accelerated benefits or any other hybrid policies because on this product, there is no underwriting for morbidity only mortality.

They will insure someone with MS (at a table 3). They will insure someone who is using a 4-prong cane. Depending on the reason, they will insure someone in a wheelchair.

I view this product as an answer for those who are either declined or uninsurable for stand-alone LTC products or hybrid products where LTC underwriting is required.

Here's an example of how it works:
Someone buys a U/L life policy with a $500,000 death benefit.
If they die and never use LTC benefits, their beneficiary receives $500,000.

If they need LTC benefits (TQ policy) they would be able to use up to 2/3 of the death benefit. 2/3 of $500,000 is $333,000.

They are given that amount as a cash-benefit.

So in essence, they would have either a life insurance policy for $500,000 or a LTC benefit account of $111,000 a year for 3 years.

I'm told that premiums are high and I'm waiting for some proposals to see for myself but I was wondering if anyone has dealt with this product (and company) and what their thoughts were?

 

[Franz Kafka]

They own LSW (Life of SouthWest) and their products had chronical illness rider for free (along with critical and terminal illness). Is that what you're referring to? If it is, are you sure that the benefits are tax exempt?

 

[Arthur Rudnick]

No, as I understand it this is a life policy with LTC benefits. It has nothing to do with critical illness

It's a TQ cash-benefit policy, paid on an indemnity basis, and benefits are thereby subject to the IRS's rules for indemnity payments.

For 2011, up to $300/day in benefits are considered tax-free, with no requirement to submit any proof to the IRS. If benefits received are over $300/day, the overage becomes taxable unless you can provide proof that the full amount was used to pay for qualified LTC expenses.

So, if someone received $350/day and could not substantiate the full amount being used for LTC services, only $50/day is subject to taxable income.

The figure increases to $310/day in 2012.

 

[Mr_Ed]

Has anyone heard about, or done business with this company?

They have a Life product with LTC benefits built in. It is unlike a Money Guard, a life policy with accelerated benefits or any other hybrid policies because on this product, there is no underwriting for morbidity only mortality.

They will insure someone with MS (at a table 3). They will insure someone who is using a 4-prong cane. Depending on the reason, they will insure someone in a wheelchair.

I view this product as an answer for those who are either declined or uninsurable for stand-alone LTC products or hybrid products where LTC underwriting is required.

Here's an example of how it works:
Someone buys a U/L life policy with a $500,000 death benefit.
If they die and never use LTC benefits, their beneficiary receives $500,000.

If they need LTC benefits (TQ policy) they would be able to use up to 2/3 of the death benefit. 2/3 of $500,000 is $333,000.

They are given that amount as a cash-benefit.

So in essence, they would have either a life insurance policy for $500,000 or a LTC benefit account of $111,000 a year for 3 years.

I'm told that premiums are high and I'm waiting for some proposals to see for myself but I was wondering if anyone has dealt with this product (and company) and what their thoughts were?

can someone with MS get life insurance?

 

[Arthur Rudnick]

Depending upon the severity, yes they can. Most companies will insure someone with MS as long as it's controlled and non-debilitating and table 3 is common.

In the case of someone who has not had an MS episode for a number of years and lives an unrestricted life without MS symptoms, there's a chance that the rating could be better than Table 3.

 

[yankee466]

Most life products with LTC benefits (aka rider), may offer the life policy, but ask additional questions to see if you also will qualify for LTC rider. Therefore, offering the rider may be subject to common sense in the case of things like MS.

Protective does it this way. Keep us posted on your findings.

 

[Arthur Rudnick]

Keep us posted on your findings.

Will do Herman, but don't lose sight of what this policy brings to the table:
LTC insurance WITHOUT LTC underwriting.

I'm unaware of any other product out there that does that.

 

[BNTRS]

What's the product? Term? UL?

There are other companies that will issue accelerated db for those who have lost two ADL's. But I'm only aware of it being available on a perm product with a min 100k db.

 

[Arthur Rudnick]

It's a U/L policy and it is not a life policy with accelerated death benefits.

 

[somarco]

Know nothing about the product, but National Life VT is a class operation.

They were once a major player in the retirement planning market. Their agents worked almost exclusively with high net worth clients. Products geared toward estate liquidity needs, not run of the mill policyholders.

First job I had out of college was working with a division of the Irvine Company, a Chattanooga retirement planning firm. Jim Irvine was a major producer for N L Vt.