A Solution for Baby Boomers with Early Long Term Care Claims

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A new insurance product allows Baby Boomers to potentially have access to 400% more benefits at a reasonable price. The Maximum Lifetime Benefit Acceleration Rider (hereby called the "Value Rider”), available from the Loyal American Life Insurance Company® Security Advantage™ LTC insurance product, helps Baby Boomers by increasing their long term care pool of money for use during early claims.

A new insurance product allows Baby Boomers to potentially have access to 400% more benefits at a reasonable price. The Maximum Lifetime Benefit Acceleration Rider (hereby called the "Value Rider”), available from the Loyal American Life Insurance Company® Security Advantage™ LTC insurance product, helps Baby Boomers by increasing their long term care pool of money for use during early claims.

In the past, when a Baby Boomer under age 65 bought a policy, they were not expecting to see the benefits until their eighties. For example, someone age 56 bought a policy worth $365,000 in total benefits. They were not expecting to use the benefits until they reached their 80s.

But health and longevity are unpredictable. Just ask someone who either has a stroke, is diagnosed with multiple sclerosis, or early-onset Alzheimer's while they are in mid-career. Consider this example: a policyholder buys LTC insurance at age 56. That year, he suffers a stroke as a complication to elective knee surgery. He has a legitimate claim against his LTC insurance policy and would use up his benefits at a much younger age than intended --- $365,000 divided by $73,000 ($200 dollars a day benefit) in five years.

With the Value Rider in the Security Advantage™ product, the policy's pool of money increases, from $365,000 to $1.4 million, (the value his policy would be worth at age 85, after inflation benefits compounded over the years.) The rider is structured to provide full accessibility to the greatest amount of benefit that the policy is structured to provide regardless of when the need arises.

The typical 57-year-old has not yet finished saving for retirement, is in his or her greatest income-producing years, and may have children in college. LTC payments from the Value Rider will allow him to stay at home. This can give a spouse the option to continue working or to return to work, instead of being the primary caregiver.

Everyone agrees that including a lifetime benefit on an LTC insurance policy is optimal, but many consumers cannot afford such a policy. Lifetime benefit period policies are, of course, much more expensive than a typical limited benefit period policy; for example, with a two year benefit period or a five-year benefit period. The Value Rider gives Baby Boomer customers buying limited benefit (less than lifetime) policies the peace of mind that, should an early claim arise, they will receive up to four times what an ordinary LTC insurance policy would provide.

For Costs and Complete Details of Coverage:

Product is not available in all states. Limitations and exclusions apply. Underwritten by Loyal American Life Insurance Company®

Agents may call Ron Hagelman, Republic Marketing Group, New Braunfels Texas, 830-620-4066, or Barry Fisher, 818-489-1839.

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