Securian Financial (Minnesota Life) Hybrid Long-Term Care Insurance Review

Once known as Minnesota Life, Securian Financial offers a comprehensive 'hybrid' Long-Term Care Insurance plan with cash benefits. The policyholder has the death benefit of a life insurance policy with long-term care benefits if you require care.

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. 

When comparing long-term care insurance, you should recognize the differences between Securian Financial/Minnesota Life and other companies. 

New Branding

Rebranding has transformed Minnesota Life, and they have adopted their parent company's name, Securian Financial. In addition, they enhanced their SecureCare policy series.

Securian Financial/Minnesota Life policy is a "hybrid' policy, offering both a life insurance death benefit along with long-term care benefits. If you are looking for a hybrid, experts recommend you limit your review to those that meet the federal regulations for Long-Term Care Insurance.

The Securian Financial policy is a "hybrid' policy, and it offers both a life insurance death benefit and long-term care benefits. If you are looking for a hybrid, experts recommend you limit your review to those that meet the federal regulations for Long-Term Care Insurance.

Federal Regulation and Consumer Protections

All Long-Term Care Insurance contracts are regulated under IRS regulations §7702B(b)(1). 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 and regulated benefit triggers, in addition to tax advantages. 

The Securian Financial policy meets the Section 7702(b) guidelines. Any insurance contract that falls under Section 101(g) cannot call itself 'Long-Term Care Insurance' and generally should be avoided as a long-term care solution. Federal law prohibits insurance companies from marketing these policies as "long-term care" policies.

With a "hybrid" policy, you are guaranteed to receive either benefits for long-term care, death, or both. You have access to your money as well in three ways:

• You require long-term care services. You receive tax-free benefits to pay for all levels and types of long-term care, either at home or in a facility of your choice. The traditional trigger for benefits is the same as any traditional Long-Term Care Insurance policy. Because this is a true Long-Term Care policy, you do not need to have a 'permanent or "terminal" health condition to trigger the benefit, in addition to your need for extended care. Plus, the long-term care benefit will not expire at a specific age.
• You die. Like any life insurance policy, when you die, you get a tax-free death benefit.
• You change your mind. If for any reason, you need money, you can receive the cash surrender value. While very few people will ever consider doing that, it gives many people additional peace-of-mind, knowing you have access to the money in the policy.

Cash is King

Cash is king, and with this policy, 100% of benefits are paid in cash to you once you qualify for long-term care benefits. No bills are required. You receive the full cash benefit once you meet the benefit trigger. With a full cash benefit, you have control and independence. You decide how you receive care and how you use the money. Yes, you get cash, but the benefits remain tax-free.

Securian Financial/Minnesota Life does not require bill receipts. You can use any care providers you wish at the time of claim, including informal care provided by a spouse, friend, or family member, since the policy has an informal care provision.

Claims

If you own a Securian Financial 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 beneficial for the entire family - Filing a Long-Term Care Insurance Claim | LTC News

Securian Financial Features and Benefits

• Monthly Cash Benefits
• Benefit Period from 2 to 7 years
• Inflation options include 3% and 5% simple and 3% and 5% compounded
• Option to accept a 1035 tax-free exchange
• Guaranteed minimum death benefit
• Return of premium if you surrender the policy
• Tax-free long-term care and death benefits
• International benefits equal to 50% of normal benefit
• Home modification benefit
• Caregiver training benefit
• 90-day elimination period

The policy combines a life insurance policy with comprehensive benefits for long-term care services and supports. Securian Financial/Minnesota Life's premium can be paid with a single premium or premiums over 5, 10, or 15 years, and these premiums can never increase.

Partnership

Since Securian Financial/Minnesota Life is a hybrid policy and not a traditional long-term care policy, it will not qualify as a partnership policy under state and federal law.

You can learn more about the federal/state partnership program and other state-specific information on long-term care by finding your state on the LTC NEWS Cost of Care Calculator.

Find State-Specific Information

You can learn more about the federal/state partnership program by going to the LTC NEWS Cost of Calculator. 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 -  Cost of Care Calculator - Choose Your State | LTC News.

Shopping for Long-Term Care Insurance?

When shopping for Long-Term Care Insurance coverage, keep in mind, 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. 

Be sure to use all the tools and resources available on LTC NEWS to help you in your research - Resources for Long-Term Care Planning | LTC News.

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.

Underwriting

Long-Term Care Insurance 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.

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

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 you several questions about your health to provide you with accurate quotes and professional recommendations.

Please note: Since every company has different underwriting rules, you could be eligible for coverage with one company and not another.

Because Long-Term Care Insurance is custom-designed, you can design the plan to fit your specific needs, concerns, and budget. A specialist will help you develop your plan to address your concerns. Generally, you can design a plan to meet some or all of these common goals:

• Safeguard income and savings
• Protect the lifestyle of your spouse/partner
• Provide options for quality care
• Reduce the stress and burdens otherwise placed on family members
• Give your adult children time to be family
• Provide a legacy for loved ones

State variations may apply.