Long-Term Care
Long-Term Care: A Lifetime of Wellbeing
Snowflake provides you with access to enroll in an optional, employee-paid Life Insurance with Long-Term Care (LTC) policy through Trustmark. LTC and Life Insurance are important benefits that should be considered in your financial plan. LTC facilities and services are expensive, and medical and disability insurance doesn’t include coverage for Long Term Care. Oftentimes, people have to use their own savings or rely on their families for financial help to pay for LTC services. Owning an LTC policy can bring financial peace of mind in the event you or your partner experiences a health event requiring LTC services. The policy also has a guaranteed death benefit that your beneficiaries would receive to use for funeral and burial services, or as needed.
What is Life Insurance with Long-Term Care?
Life Insurance with Long-Term Care provides coverage to help with services that are needed when are unable to care for yourself due to an illness, injury, or severe cognitive impairments such as Alzheimer’s Disease or Dementia. If you are unable to perform 2 of 6 Activities of Daily Living and a healthcare provider has recommended care, you would be eligible for the LTC benefits from your policy. Services can range from at-home healthcare or adult day care to assisted living or nursing homes.
70% of people will require LTC services in their lifetime. Investing in a Life and LTC Insurance policy provides you with life insurance that is guaranteed, meaning it will pay as long as you continue paying premiums. Should you also need LTC services, you can rely on your policy to pay LTC benefits and still have your life insurance benefit intact so you are truly getting two benefits out of one policy. Unlike standalone LTC policies that are “Use it or Lose it”, the death benefit is guaranteed to be paid and LTC benefits are available if you need them.
How does it work?
You have the option to choose a life insurance amount, ranging from $10,000 up to $300,000. Unlike Term life Insurance which provides a lot for a little and coverage is in place for a certain period of time, the life insurance in this policy is guaranteed. The Long-Term Care benefit will pay 4% of your life insurance policy amount on a monthly basis for up to 25 months. For example, if you elect $150,000 in Life Insurance, you will have $6,000 (4% of $150,000) in LTC benefits that will be paid out monthly. While the death benefit does reduce to 1/3 of the benefit at age 70 or once you’ve had the policy for 15 years (which is later), your LTC benefit never reduces and will always be based on your original life insurance policy amount.
- As a newly eligible employee, within the first 31 days of employment with Snowflake, during your initial enrollment, you can elect up to $150,000 without answering any health questions. You can elect an additional $50,000 by answering two health questions. Anything above $200,000 will require you to answer a total of 7 health questions. As a newly eligible employee, to learn more or activate your policy, visit the Life Insurance with Long-Term Care enrollment site here.
- If it is outside of the Open Enrollment period, or beyond 31 days from your newly eligible date, you can enroll at any time during the year, increase coverage, or cancel, although you will be required to answer health questions. Please contact Trustmark directly at 847-615-1500 or email customercare@trustmarkbenefits.com.
| Life Insurance Policy Amounts | Up to $300,000 (decreased to 1/3 of the benefit at age 70 of 15th policy anniversary date) |
| Long Term Care Benefits | 4% of Death Benefit payable for up to 25 months |
| Cash Value | This policy builds cash value that you can access once enough cash is accrued, most people use it to pay for their policy |
| Restoration of Death Benefit | Trustmark pulls the LTC benefits from the death benefit while you need LTC, but then restores the death benefit so your benefit doesn’t reduce after using the LTC portion |
| Payment Terms | Premiums are based off your age and the amount you elect and will not increase as you age – pay level premiums until age 100 at which time you’ll be paid the cash value of your plan |
Why is Long-Term Care a Legislation Issue?
Long-Term Care costs are rising and the volume of people who will need LTC is increasing. With fewer healthcare providers in addition to an increased need for care, Long Term Care has become a financial crisis, and many states are considering implementing a state plan to help fund LTC services. While California has not finalized legislation regarding LTC, they are getting closer. Washington was the first state to roll out a state plan, and many states are considering doing the same and the number of states continues to increase.
How can I learn more?
As a newly eligible employee, within the first 31 days of employment with Snowflake, during your initial enrollment, you can elect up to $150,000 (Age 64 max.) without answering any health questions. You can elect an additional $50,000 by answering two health questions. Anything above $200,000 will require you to answer a total of 7 health questions. To learn more or activate your policy, visit the Life Insurance with Long-Term Care enrollment site here.
If it is outside of the Open Enrollment period, or beyond 31 days from your newly eligible date, you can enroll at any time during the year or increase coverage, although you will be required to answer health questions. Visit the Life Insurance with Long-Term Care enrollment site here.
For existing policyholders, to cancel or decrease coverage, please contact Trustmark directly at (800) 918-8877 or email at customercare@trustmarkbenefits.com.
