Do You Have an AAFMAA Value-Added Whole Life Policy?
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.
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