Premiums while on claim?

[Kraken]

Specifically pertaining to life insurance with a LTC or Chronic Illness rider.....are premiums generally still required to be paid while the insured is on claim and paying for care?

 

[adjusterjack]

Depends on whether you have a Waiver of Premium option.

Read your policy to find out.

 

[scagnt83]

Specifically pertaining to life insurance with a LTC or Chronic Illness rider.....are premiums generally still required to be paid while the insured is on claim and paying for care?

Yes, premiums are still required with most policies.

IF, you chose the Disability Waiver of Premium Rider, then premiums MIGHT be waived in that case. However, the DI Rider uses a Disability Definition to be activated, not a LTC or Chronic definition. Many LTC/Chronic claims would probably qualify for DI Rider claim, but not all by any means.

Also, the DI Rider ends at age 60-65 with most all policies. So after that, its no longer applicable.

* if you are talking about true hybrid LTCI using a UL chassis (such as moneyguard), then yes, most often premiums are waived with a claim. but not with a true life policy.

 

[scagnt83]

Depends on whether you have a Waiver of Premium option.

Read your policy to find out.

Not necessarily. Not all LTC or Chronic claims will qualify under definition of Disabled.

Plus they end at age 60-65.

As you said, read the policy.

 

[ltcadviser]

* if you are talking about true hybrid LTCI using a UL chassis (such as moneyguard), then yes, most often premiums are waived with a claim. but not with a true life policy.

Moneyguard doesn’t waive premiums. Many policies will not. Asset Care will waive premiums.

Yes, depends on contract.

Also, you have to distinguish between waiving premiums and waiving LTC insurance charges against cash accumulation values.

 

[scagnt83]

Also, you have to distinguish between waiving premiums and waiving LTC insurance charges against cash accumulation values.

That certainly varies on the Rider or type of policy used.

For a true UL policy utilizing a Chronic Rider, it's usually the "monthly deductions" that are waived. The official name of the Rider on UL polices is usually "Waiver of Monthly Deductions".

Meaning the expenses charged to the policy are waived. However, some do offer waiver of a "specified premium" which means that specific amount will still be credited to the policy as premium.

A WL policy usually waives the base premium. Some waive PUA premium.

 

[Biglon]

I have been receiving monthly benefits for the past three years on my LTC policy and the premiums are being waived on the policy. It's a individual policy and not a rider to a life policy. There is no dollar or time limitation.

 

[ltcadviser]

I have been receiving monthly benefits for the past three years on my LTC policy and the premiums are being waived on the policy. It's a individual policy and not a rider to a life policy. There is no dollar or time limitation.

Yes, all stand-alone LTC policies will routinely waive premium payments.

 

[Tahoe Ray]

Yes, all stand-alone LTC policies will routinely waive premium payments.

We're gonna have a rough year for football...