Pacific Life Hybrid Long-Term Care Insurance Review

Pacific Life Insurance Company is a highly rated and respected insurance company providing numerous insurance products. Pacific Mutual Life was founded in 1868 and is financially strong, with outstanding ratings from A.M. Best and Standard and Poors. 

The company offers numerous life insurance products, annuities, mutual funds, and investment products and services to individuals, businesses, and pension plans.

For long-term care planning, Pacific Life's Pacific PremierCare suite of products has been discontinued. This includes Pacific PremierCare® Choice one-year, five-year, 10-year, and lifetime premium whole life insurance products with long-term care (LTC) benefits and Pacific PremierCare Advantage Universal Life Insurance with Long-Term Care Benefits in California.

Pacific Life will continue to service all in-force policies. For existing policyholders, there will be no change.

The company will still continue to offer life insurance policies with chronic illness riders which are not intended to meet federal guidelines for Long-Term Care Insurance under Section 7702(b) of U.S. Code. Pacific Life will also continue to offer long-term care riders on their cash-value life insurance policies. These policies do meet federal guidelines but usually are not regarded as an ideal option for long-term health care planning.

Federal Regulation and Consumer Protections

If you are looking for a hybrid, experts recommend limiting your review to those that meet the federal regulations for Long-Term Care Insurance.

All Long-Term Care Insurance contracts are regulated under IRS regulations §7702B(b). 

Any insurance contract that meets the guidelines set by the Internal Revenue Service is considered long-term care. All insurance products that meet these federal guidelines contain consumer protections, regulated benefit triggers, and tax advantages. 

Remember, any insurance contract under Section 101(g) cannot call itself 'Long-Term Care Insurance and should generally be avoided as a long-term care solution. Federal law prohibits insurance companies from marketing these policies as "long-term care" policies.

Other Options to Consider

Since Pacific Life no longer offers hybrid policies or traditional Long-Term Care Insurance, several top-rated insurance companies are available that offer both traditional and partnership-certified plans. The top insurance companies for traditional Long-Term Care Insurance include: 

• Mutual of Omaha

• Thrivent Financial

• National Guardian Life

• New York Life

• Northwestern Mutual

The top insurance companies for hybrid plans that combine life insurance or an annuity with a qualified rider (those meeting federal guidelines) for long-term health care include:

• Nationwide

• One America

• Brighthouse

• Lincoln Financial

• Securian Financial 

Partnership 

Existing Pacific Life policies are not traditional Long-Term Care Insurance. As a result, they will not qualify as a partnership policy under state and federal law.

You can learn more about the federal/state partnership program - What is a Long-Term Care Partnership Policy?

Underwriting

Long-Term Care Insurance, including hybrids, is medically underwritten, and every company has its own underwriting rules which determine insurability and rate class. An experienced Long-Term Care Insurance specialist will understand these underwriting rules when helping you select the best company and policy options.

What is Underwriting? How Does Current Health Impact Ability to Obtain Long-Term Care Insurance?

Discuss your health in detail with a Long-Term Care Insurance specialist before applying if you have several pre-existing health issues. 

Find State-Specific Information

Each state has a state-specific page that includes the current and future cost of long-term care services, available tax incentives, information on care providers, and other important information - LTC NEWS Cost of Care Calculator.

Claims

If you own a Pacific Life policy and seek help submitting a claim, LTC NEWS offers free - no-obligation assistance - including help finding quality caregivers and facilities. 

Since most agents have little or no experience in this area, this assistance can be helpful for the entire family - Filing a Long-Term Care Insurance Claim.

Shopping for Long-Term Care Insurance?

When shopping for Long-Term Care Insurance coverage, remember that numerous state and federal regulations impact Long-Term Care Insurance. Each state's department of insurance regulates products and premiums. Because of regulation, an insurance agent, agency, or financial advisor cannot give a consumer a special discount that is not available otherwise. 

Use all the tools and resources available on LTC NEWS to help you in your research - Resources for Long-Term Care Planning.

There are more similarities than differences when it comes to features and benefits. However, options and benefits vary from company to company, and premiums can vary between companies by over 100% when comparing equal benefits.

Comparing LTC Insurance Products

Be sure to seek the assistance of a qualified Long-Term Care Specialist to compare each policy's features, benefits, and costs. You can find a trusted and qualified specialist representing the major insurance companies that offer these products - Work With a Long-Term Care Insurance Specialist.

Since your health is a primary consideration in determining your eligibility for coverage, it is always best to start planning before retirement when health is usually better. An experienced Long-Term Care Insurance specialist will ask several questions about your health to provide accurate quotes and professional recommendations.

Please note: Since every company has different underwriting rules, you could be eligible for coverage with one company rather than another.

There are variations between the policy language and benefits between the many companies that offer Long-Term Care Insurance. However, the primary features and benefit choices are comparable from company to company. 

Premiums and underwriting criteria vary dramatically between insurance companies. 

State variations may apply.