Do You Have an AAFMAA Value-Added Whole Life Policy?
Military.com
Published
Even though AAFMAA's Long Term Care Settlement Option (LTCSO) was not always available to AAFMAA insureds, ALL Value-Added Whole Life policies include the option, AT NO ADDITIONAL COST!
An accelerated payment of the death benefit of an AAFMAA Value-Added policy.
There is no cost added to your Value-Added policy to include the LTCSO.
There is a monthly administrative fee if/when the policy is converted to LTCSO, to cover processing costs, currently $20/mo.
What does it get me?
2 percent of the death benefit amount, up to the amount permitted by the IRS to be tax-exempt, paid out in monthly installments, up to 50 months.
What are the eligibility requirements?
Insured by an AAFMAA Value-Added policy in effect for at least 2 years; and
Attained Social Security Full Retirement Age; and
Have been receiving continuous care (long term care nursing facility or home care) for the past 4 months or more; and
Chronically Ill (unable to perform at least two daily living activities) or Insured requires substantial supervision to protect themselves from threats to health and safety due to the presence of a cognitive impairment.
What are daily living activities?
Eating, toileting, transferring, bathing, dressing and continence.
What happens to my policy if I convert to LTCSO?
Death benefit amount is fixed upon LTCSO approval.
Premiums stop on amount converted.
Death benefit does not grow on amount converted, since it is being paid out.
Any coverage amount above that converted remains in effect as long as those premiums are paid and will continue to grow in cash value and death benefit.
What happens if death occurs before 50 months?
Remaining death benefit is paid to the beneficiary.
In summary, LTCSO makes AAFMAA's Value-Added policies win-win-win.
Cash Value builds up, and can be used for loans before Long Term Care need.
LTCSO on death benefit if the insured needs Long Term Care.
Amounts not used for loans or LTCSO remain available as death benefit for the beneficiary.
How can I find out more about an AAFMAA Value-Added policy and LTCSO?
To find out more about an AAFMAA Value-Added policy, call a Membership Coordinator toll-free at 1-877-398-2263. If you are a member already with a Value-Added policy and you need Long Term Care, call Policy Services at 1-800-522-5221.
