Market Overview

Mutual of Omaha Introduces Long-Term Care Rider

Share:

United of Omaha, a Mutual of Omaha company, has introduced a new
solution to help meet customers' long-term care (LTC) planning needs.
The company recently launched a Long-Term Care Rider on its Income
Advantage and Life Protection Advantage Indexed Universal Life policies.

Since 1987, traditional long-term care insurance has been – and
continues to be – a core product for Mutual of Omaha. The new rider
provides another option for customers who wish to help cover the
significant risk of incurring long-term care expenses.

By adding the LTC Rider to a new indexed universal life insurance
policy, customers are able to help protect a couple of important needs
through a single policy. The life insurance helps protect loved ones
with a death benefit, while the rider allows policyowners to use all or
a portion of the death benefit early for qualified long-term care
expenses, based on the coverage amount chosen.

Mutual of Omaha's new rider provides benefits for a wide variety of
long-term care options, including nursing homes, assisted living, home
health care and adult daycare. Customers have the flexibility to choose
their LTC coverage amount and select a monthly payout of 1, 2 or 4
percent of the maximum benefit.

Mutual has offered an Accelerated Death Benefit for Chronic Illness
Rider on its universal life policies for more than a decade. There is no
upfront cost on that rider – the customer is only charged if he or she
ends up needing it.

With the introduction of the LTC Rider, customers now have a choice. The
first option is to purchase the LTC Rider at the same time as their IUL
policy. If the customer does not purchase the LTC Rider – or does not
qualify for it – he or she will automatically receive the Chronic
Illness Rider at no charge.

"This choice of a Chronic Illness Rider or an LTC Rider is unique within
the life insurance industry," said Joe Kenny, Mutual of Omaha vice
president and actuary. "We have many customers and advisors who value
our Chronic Illness Rider due to its simple design and lack of upfront
cost, but there are some who prefer the known monthly benefit of the LTC
Rider. We are now able to let our customers decide how they want to
cover this risk."

Founded in 1909, Mutual of Omaha is a full-service, multi-line
organization providing insurance, banking and financial products for
individuals, businesses and groups throughout the United States. For
more information about Mutual of Omaha, visit mutualofomaha.com.

View Comments and Join the Discussion!