If you’re looking for hybrid long-term care and life insurance policy (also called linked policies), Securian is worthy of your consideration. A hybrid policy may be ideal because if you need long-term care, the money is there for you and if you don’t, your loved ones get a tax-free death benefit.
Securian is formerly known as Minnesota Life Insurance. They’re a fortune 500 company, with more than 21 million customers in North America alone.
- Features of Securian’s SecureCare Long-Term Care Insurance
- How Much does Securian’s SecureCare Long-Term Care Insurance Cost?
- Customer Satisfaction Rating of Securian’s SecureCare Long-Term Care Insurance
- Financial Strength Rating of Securian’s SecureCare Long-Term Care Insurance
Features of Securian’s SecureCare Long-Term Care Insurance
Securian’s SecureCare is a hybrid long-term care insurance policy.
The first thing we like about this policy is that it’s a cash indemnity policy. That means if you need long-term care, Securian will cut you a check of the monthly benefit amount (for the example below, this is $6,000 a month) and you can spend the money on whatever long-term care works for you. You don’t have to keep receipts, and there’s no reason to clear anything through Securian. No limitations. Obviously, this is great and removes one source of stress from a stressful situation.
You can use your money for:
- Home modifications
- Home health care
- Adult day care
- Nursing home care
The policy’s benefit periods are available from two to seven years.
There is no elimination period for home modifications or caregiver training—everything else has a 90-day elimination period. To our knowledge, no cash indemnity policy has an elimination period of zero days, although Nationwide will retroactively refund you the money after 90 days.
Premiums are guaranteed never to increase. This is a great feature, especially when you consider that just recently, a lot of hybrid policies increased costs. This way you’re never waylaid by a hefty premium increase and have to decide if you should keep the policy or pay more than you’re comfortable with.
There are a number of riders available.
Inflation Protection: But didn’t we just say your premiums won’t increase? They won’t, but the cost of health care definitely will. This rider adds either 3% simple, 3% compound, 5% simple or 5% compound interest.
Return of Premium: Single premium, 100% of the premium with 6 year vesting, and multiple pay equals 100% after the last premium is paid.
Residual Death benefit: Ten percent of the face value of the policy, up to $10,000. This is the amount Nationwide will pay out to your beneficiaries after you spend your long-term care benefits from the policy before you pass away. It can be used to replace the final expense life insurance policy.
How Much does Securian’s SecureCare Long-Term Care Insurance Cost?
For quoting purposes, we got a quote for a 50-year old female non-smoker in excellent health.
- Total premium: $79,520
- Long Term care benefit: $288,000 total
- Monthly benefit: $6,000 a month
- Benefit period: 4 years
- Death benefit: $144,000
- Annual premiums: $7,952 and pay for 10 years. Total premiums are $79,520
This is the cheapest quote we have got from the best 5 companies offering hybrid long-term care insurance product. And to be clear, if you need long-term care coverage, you can receive the policy up to $288,000 for 4 years; if you don’t need long-term care, your beneficiary will receive a tax-free death benefit of $144,000 when you pass away.
Customer Satisfaction Rating of Securian’s SecureCare Long-Term Care Insurance
Securian earns an overall score of 739 overall, out of a possible 1,000 on J.D. Power’s life insurance study. The median average score was 761, putting Securian solidly with “the rest” or below average when it comes to customer satisfaction.
The BBB gives Securian a B. This doesn’t sound terrible, but it is lower than what most insurance companies earn, usually A or A-. There are fourteen one-star reviews and 29 customer complaints. Securian responds to all of the complaints by saying there are unable to provide details.
Financial Strength Rating of Securian’s SecureCare Long-Term Care Insurance
A.M. Best gives Securian an A+ rating (Superior) so they definitely have the resources to pay claims.
An attractive price, guaranteed premiums and a cash indemnity plan make Securian SecureCare a policy worth looking into. The customer service ratings are a little disappointing, so be aware of that. Securian is a viable alternative.