I've heard that in Pennsylvania, if you purchase a 10-pay LTC policy, and never use the LTC benefits, then your heirs would receive monies at your death (I think the amount of the original monies paid).

Does anyone know if this is correct? What would this benefit be called so I could ask about it? Does it apply to all 10-pay LTC policies in PA? Would monies be tax-free, like life insurance?

Any help from anyone would be greatly appreciated.

Thanks!

Sue

Well, unfortunately I am here in Georgia, but the last time I checked with PA, there was no RoP even approved in the state. When you get a 10-pay, all you do is avoid rate increases after 10 years....so I am guessing you have heard incorrectly. if it were so, it would be one heck of a deal. Maybe some PA person will chime in.

In any other state I have ever sold in, you would have to add the RoP feature plus the 1o pay to get what you describe.

I work with 5 of the top companies in PA. None of them have Return of Premium approved anymore. I don't want to say NOBODY has it, because there could be somebody out there that got it approved, but in general, PA doesn't like ROP on health products.

Why is that trubi, any idea?

Arthur

Sue:

If you want something in PA that gives you all your money back if you never use it, you may want to look into what is referred to as a "linked benefit" plan....such as a LTC annuity or Life insurance plan with a LTC rider. This way you get to typically pay a single premium, although some let you pay over a period of years, and then you ALWAYS have your principle amount, plus interest, along with a LTC benefit. There are many carriers that offer these products. Not sure who sells what in PA of course.

Maybe this is what you were looking at?

Yankee.

Sue,
I just checked my software and it seems that MedAmerica and Genworth both offer a Return of Premium option in PA. Not sure if it's a full ROP or not. Speak with a LTC specialist to review your options.
Arthur

Arthur:

My Stratecision and Winflex do not provide RoP for GNW in PA. MedAmerica shows "less claims" however. What software do you use?



Herman

Herman,
I use individual company software. In both cases, ROP is an available option. But I don't have access to PA forms so I'm not sure what type of ROP is available.

MedAmerica's software has ROP. Genworth (I also use Winflex) offers a ROP, but it says "After 4 years".
Arthur

Scott,

I am curious who the few "higher rated" carriers are that offer a full return of premium in PA. We represent most of the top rated carriers or are familiar with the market, at least I thought so, and I am unaware of any, let alone a few "higher rated" carrier in PA that offer a "Full Return" of Premium.

That said...we can all learn something new everyday. Thanks.

Indian37,

I'm aware of 2 LTCi policies that offer the full Refund of Premium rider to residents of PA.
One is rated A by AM Best and the other A-.

There is one company that offers the Refund of Premium minus claims. That company is rated B+ by AM Best.

Scott A. Olson
Redlands, CA

Scott:

Thanks. I am aware of the B+ company. Others two I am not familiar with. They must not be mainstream carriers.

They have been listed as two of the strongest LTC insurers by the Street dot com.

I thought this was a forum to share info....not keep secrets.

yankee466...well said.