Long Term Care

Product

Your long term care policy pays a monthly income benefit if you do not have the capacity for self-care as described in the policy.

Assuris Protection

If your life insurance company fails, Assuris will ensure that the coverage under your long term care policy will continue and we will seek to transfer your policy to a solvent company.

  • Assuris guarantees that you will retain at least 85% of your promised monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, you will retain the full amount of your benefit.

Example 1

Monthly Income Benefit

$1,500
/month
Original Benefit Amount

In calculating your Assuris protection, you will retain up to $2,000 or 85% of your monthly income benefit, whichever is higher.

Since the amount is less than $2,000 a month, your monthly income benefit is fully protected.

$1,500
/ month
Adjusted Benefit

Example 2

Monthly Income Benefit

$3,000
/month
Original Benefit Amount

In calculating your Assuris protection, you will retain up to $2,000 or 85% of your monthly income benefit, whichever is higher.

Since the amount is more than $2,000 a month, the 85% protection is applied to the monthly income benefit.

$2,550
/month
($3,000 × 85%)
Adjusted Benefit

The liquidator, appointed to manage the failed company, will seek to sell the assets and transfer the liabilities with the aim to get the best value for policyholders. This will determine the recovery percentage.

Your benefits will be adjusted to the greater of the Assuris protection or the recovery percentage achieved by the liquidator.

For example, if your monthly income benefit is greater than $2,000 a month and the liquidator recovers 90% of the assets, your policy will be adjusted to 90% instead of Assuris’ guarantee of 85%.

Original Benefit Amount

Monthly Income Benefit $4,000

Recovery

Liquidator Recovery:
$3,600
($4,000 × 90%)

Assuris Protection:
$3,400
($4,000 × 85%)

Explanation

Since the liquidator’s recovery is greater than Assuris’ protection, you will retain $3,600 a month.

Questions and Answers

1. What happens if you have more than one policy?

Assuris protects each member company separately. If you have more than one policy with the same member company, all similar benefits are added together before Assuris’ protection is applied.

2. What if you receive quarterly or annual benefit payments?

For quarterly benefit payments the Assuris protection is $6,000/quarterly or at least 85% of the promised quarterly payments, whichever is higher.

For annual benefit payments the Assuris protection is $24,000/annually or at least 85% of the promised annual payments, whichever is higher.