Product spotlight: Shared Care Benefit
This rider is for couples who purchase identical Thrivent Long-Term Care Insurance policies. It’s designed to provide couples with extra flexibility in their long-term care planning.
How it works:
The shared care benefit links two individual contracts together. If an insured uses his or her entire available benefit, then he or she can start drawing from the benefit partner’s remaining available benefit.
- If one insured qualifies for the waiver of premium, neither benefit partner will have to pay premiums. The joint waiver of premium benefit automatically kicks in.
- If an insured uses all of his or her benefit partner’s benefits, the benefit partner not on claim can elect to purchase an additional 24-month benefit for his or her use only (without additional underwriting). This is called the residual benefit. (see below)
- Other than reducing the contract’s available benefit, payment of benefits to the benefit partner will not affect the other insured’s eligibility for benefits under his or her contract.
- Both insureds may be on claim at the same time.
Both contracts MUST have identical coverage, issue dates and benefits, including:
- Elimination period
- Benefit multiplier
- Maximum monthly benefit
- Benefit increase options
- Riders (see Product Guide for full details including the Flexible Increase Benefit rider)
- Premium payment type (lifetime pay or limited pay)
Residual benefit
As mentioned above, the residual benefit is available to a contract owner when his or her benefit partner has used all the benefits from both contracts. The benefit partner not on claim can elect to purchase an additional 24-month benefit for his or her use only.
The new available benefit will be the current maximum monthly benefit on the date of termination with a benefit multiplier of 24 months.
- No evidence of insurability is required.
- The new premium will be based on the insured’s attained age.
- Available through age 85.
Eligibility for the residual benefit:
- Insured that is applying for the benefit has not had any days credited to his or her elimination period.
- Insured that is applying has not been eligible to be certified as chronically ill in the two years before the application date for the residual benefit.
Death
- Surviving benefit partner’s contract will be automatically increased by the remainder of the deceased’s available benefit.
- Shared care rider will terminate.
- The new premium calculation will be the surviving contract holder’s original premium (with the couples discount still in place) less the premium for the shared care rider. There is no charge for the increased available benefit.
Divorce or Separation
Upon divorce or separation, this rider is only terminated if one of the benefit partners cancels the rider. Otherwise, the rider will continue.
Shared Care Benefit rider is not available:
- For applicants with a Class 1 or Class 2 risk class.
- With the Return of Premium Upon Death rider.
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