Universal Life with Long-Term Care Insurance

WSU is pleased to provide coverage for Long Term Care (LTC) services. This coverage is available with the added protection of combining life insurance, cash value and LTC all in one policy, on an employee-paid basis to active benefits-eligible employees and their family members.

Thanks to advancement in medical technology, individuals are expected to live 20-30 years beyond normal retirement age. Which is great! However, preparing for a longer lifetime requires much more planning for future financial and physical needs. According to the U.S. Department of Health and Human Services, 68% of people over the age of 65 will need some kind of long-term care in their lifetime. Furthermore, the group term life insurance death benefit reduces at retirement leaving most employees with insufficient coverage during their most critical years.

Most Americans know about the kind of medical health insurance that pays doctor and hospital bills. Another kind of insurance benefit helps pay for care in a nursing home or services for home health care. For some, Long Term Care Insurance is an option, but may be expensive. In addition, most people don't think about buying it until they get older. By then, it may be more than they can afford. Universal Life insurance with LTC provides a long-term care benefit that's funded by life insurance. With this type of coverage, life insurance proceeds can be left to beneficiaries even if the LTC benefit is never used.

The Long Term Care benefit covers assistance with activities of daily living – in the event of cognitive impairment aging, an accident, or illness occurring at any age, leaving you unable to care for yourself. Care could be provided in a nursing home, assisted living facility or in your own home.  44% of the 12 million Americans that rely on long-term care services are under age 65*.  For seniors, these services are not typically covered by Medicare.

*Commission on Long-Term Care Report to Congress, September 18, 2013, Pre-Publication Version, http://www.medicareadvocacy.org/wp-content/uploads/2014/01/Commission-on-Long-Term-Care-Final-Report-9-18-13-00042470.pdf.

Briefly, the Wayne State University program option is: Universal Life Insurance with Long-Term Care (Trustmark)

This program option has the flexibility of providing an affordable long-term care benefit in combination with a death benefit. You have two types of policies to choose from.

Universal LifeEvents® insurance pays a higher death benefit during your working years when expenses are high and you need maximum protection. In your retirement years when your financial needs are lower, your death benefit reduces to one-third at the latter of age 70 or the 15th policy anniversary. Issue age is 18-64 for you and your spouse.

You also have the option to purchase a standard Universal Life insurance policy with all the same features as LifeEvents, except the death benefit does not reduce due to age. Issue age is up to age 75.

Program Advantages

  • Employee participation in the program option is completely voluntary. 
  • Employees will pay 100 percent of the premiums through payroll deduction.
  • Coverage is completely portable at same benefits and premium if you change jobs or retire. 

Eligible Employees and Other Eligible Dependents

All benefit eligible employees (having an appointment of at least 50%) are eligible to apply for coverage.

The Universal Life Insurance with Long Term Care (Trustmark) option permits enrollment of the spouse, other eligible person and children.

Program Enrollment

Enrollment for this program occurs annually during a specified enrollment period. Watch for more enrollment details throughout the year.

Premium Payments

The employee will pay the full premium amount through the convenience of after-tax payroll deduction.

Special Note:

Wayne State University previously offered John Hancock Group Long Term Care Insurance as a voluntary benefit.  In 2012, John Hancock informed Wayne State University that they are not accepting NEW applications for Group Long Term Care Insurance.  If you are an existing John Hancock LTC policyholder and have questions regarding your policy, contact John Hancock directly at the phone number listed below. The dedicated John Hancock website (http://wsu.jhancock.com) is no longer available.  

Provider Product Telephone
John Hancock Group Long-Term Care 1-800-400-5083