Protective Announces ExtendCare Per Diem Limit Change
From Protective:
The LTC/Chronic Illness per diem is changing for 2022, but rather than increasing, it’s decreasing. This per diem change will provide clients the opportunity to access up to $11,700 (down from $12,000 in 2021) of their policy’s death benefit each month through ExtendCare (ECR). This per diem change will update in Winflex Web on 1/10/22. Once that change occurs, you won’t be able to illustrate 12k for new illustrations – only revised illustrations – forcing all new illustrations and applications to max at $11,700. Applications received in 2022 with the max per diem limit of 12k will be honored as you will have access to the higher ECR amount until 01/10/2022.
Here are some features of ECR below. Also attached is the ECR Producer Guide and client approved FAQs.
Product Availability - Lifetime Assurance UL, Advantage Choice UL, Indexed Choice UL, Strategic Objectives II VUL
Indemnity Model – No receipts or proof of care need to be submitted to receive the monthly benefit.
Accelerated Death Benefit Rider: Falls under IRC Sec. 101(g) Accelerated Death Benefit Guidelines and does not fall under health regulations (no LTC CE required).
Eligibility: No Permanency Requirement. Certification means written documentation from a licensed health care practitioner that you are chronically ill and likely in need of services for at least 90 days.
Waiver of Charges: Premium charges and policy expenses will be waived while on claim.
Permanent Waiver: Premiums and policy expenses are permanently waived with the third consecutive chronic illness certification (25 consecutive months).
This means the client can come off of claim (after the third consecutive chronic illness certification) and the remaining DB will stay inforce for the rest of the client’s life with no more premium payments!
Maximum Substandard Rating – Table 4
Waiting Period: 90 Days
Maximum Monthly Benefit Amount: The current per diem amount, limited to 5% of base policy amount.
Minimum Face Amount:$ 100k
Maximum Face Amount: $5M
Please note, the ECR is currently not approved in the state of CA or NY.