In the case of death, a tax-free benefit will be paid to the beneficiary.
In the case of loss of independence as of age 65 or 10 years after the contract is issued, whichever is later, Long-term Care Advance pays a monthly benefit equivalent to 1% of the life insurance amount up to a maximum of $2,500. This monthly benefit is tax-free and is payable 1 month after a 90 day waiting period.
The life insurance amount is reduced by the Long-term Care Advance benefit amount. If the life insurance amount is $250,000 or less and the Long-term Care Advance benefit has been paid, the insured's beneficiary will never receive less than 25% of the initial insurance amount. Consequently, the maximum amount payable is 125% of the initial insurance amount. If the life insurance amount is over $250,000, the insured's beneficiary will receive a minimum of 25% of the first $250,000 and all insurance in excess of that amount.
Therefore, the life insurance with Long-term Care Advance is two permanent plans in one, under the same contract.
