Protective Life has a long term care services rider available on their universal life insurance product “Centennial G II”. This allows the life insurance benefit to accelerate out when the insured is certified by a licensed health care practioner as chronically ill, meaning unable to perform two out six activities of daily living or severe cognitive impairment. This LTC type benefit is a very valuable added plus to include in a life policy. It’s there just in case, and if not needed or if only some benefits are needed, the remaining death benefit goes to the beneficiaries.
Payouts with Protective’s plan are an indemnity payment method, full direct benefit payments, which is much preferable over the reimbursement method, repayment of bills or receipts. Maximum is $8,500 per month, and the benefit can be 100% of the policy value. Lump sum payment is also available.
Protective’s $8,500 per month maximum accelerated benefit is better than most carriers, but a few competing plans are based on percentage of the policy benefit which allows a higher acceleration. For example, Penn Mutual allows 24% of the policy benefit, maximum $240,000 accelerated per year.