Securian Financial offers a combined life and long‑term care (LTC) insurance plan that lets policyholders secure a death benefit while also providing daily cash benefits if they need qualified long‑term care services, helping manage out‑of‑pocket costs and preserve assets.
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Key Features of the Life/LTC Hybrid
The hybrid plan integrates two protections into one contract:
- Life coverage: A guaranteed death benefit payable to beneficiaries if the insured dies before exhausting the LTC benefits.
- LTC coverage: Daily cash benefits for up to a chosen maximum number of days, triggered when the insured meets a defined level of care need.
- Benefit coordination: LTC benefits are paid first; any remaining death benefit is reduced by the total LTC payments already made.
How Benefits Are Triggered
LTC benefits begin after a qualified need is documented by a licensed health professional and confirmed by Securian's underwriting guidelines. Common qualifying events include inability to perform two or more activities of daily living (ADLs) such as bathing, dressing, or toileting, or a severe cognitive impairment.
Choosing Coverage Amounts and Duration
Applicants select a maximum daily LTC benefit (often $150‑$300) and a total benefit period (typically 3‑5 years). The death benefit is usually set at a multiple of the daily LTC amount, for example, a $200 daily benefit with a 5‑year period might pair with a $150,000 death benefit.
Cost Considerations
Premiums depend on age, health, gender, benefit levels, and payment options (annual vs. monthly). Because the plan bundles life and LTC coverage, it is generally less expensive than purchasing separate policies, but costs rise with higher daily benefits and longer benefit periods.
Eligibility and Underwriting
Applicants must complete a health questionnaire and may undergo medical exams. Securian uses a risk‑based underwriting model; healthier individuals receive lower rates. Some states have specific regulations that affect availability or pricing.
Policy Options and Riders
Optional riders can enhance flexibility, such as:
- Inflation protection: Increases daily LTC benefits each year to keep pace with rising care costs.
- Return of premium: Returns a portion of premiums paid if the insured outlives the LTC benefit period without using it.
Integration with Financial Planning
The hybrid policy can serve multiple planning goals:
- Preserve estate value by providing a death benefit.
- Reduce reliance on Medicaid by covering LTC expenses early.
- Offer tax‑advantaged cash benefits that are generally not taxable.
Comparing Hybrid Policies
| Attribute | Securian Hybrid | Traditional LTC Only | Separate Life Only |
|---|---|---|---|
| Premium cost | Mid‑range (bundled discount) | Higher for same LTC coverage | Separate life premiums added |
| Death benefit | Included, reduced by LTC use | None | Full amount unaffected |
| Cash benefit taxability | Generally non‑taxable | Generally non‑taxable | N/A |
When the Hybrid May Not Be Ideal
Individuals who prioritize a large, untouched death benefit, or who expect minimal LTC needs, might prefer separate policies. Also, those with pre‑existing conditions that raise underwriting risk may find the hybrid's rates less competitive.
How to Purchase
Interested consumers can contact a Securian licensed agent, obtain a personalized quote, and complete the application online or via paper forms. After underwriting approval, the policy becomes effective on the agreed start date.