Ill admit I dont remember the name of the company or the exact percentage but I remember that is was substantial. Essentailly squeezing the policy owner to take less now. But please, do tell which company will offer 100% for a LTC?
It's not about offering 100% for LTC, it's about getting dollar for dollar reduction of the death benefit if used for LTC. You can get a $3,000,000 Whole Life policy and select how much of that (up to a certain maximum) would be available for LTC. That amount could be as low as $90,000 (IINM) or as high as $2,500,000 (not in every state).
What you might be referring to is Guardian's EABR rider, which ISN'T a long-term-care rider, but rather a NO-COST rider that allows one to take LOANS in excess of the cash value in case of a long-term-care situation.
Guardian's also has a true LTC rider that isn't free and allows up to 90% of the death benefit to be used for Long-Term Care (with the balance remaining as a death benefit, in case LTC pool was exhausted). NYL has a Chronic Care Rider that IINM allows up to 99% of the Death Benefit to be used for LTC. NYL also has an Asset Preserver product in which the LTC benefit can exceed the policy initial face amount, and still leave a residual death benefit. MassMutual has a LTC rider that allows up to 90% of the death benefit to be used for LTC (leaving at least 10% residual death benefit). Just to name a few of the big players.
MassMutual and NYL are two of the few companies out there that still offer standalone LTC insurance, but IINM only available through their captive agents, not through the brokerage channel.
The drawback of LTC riders on Whole Life policies is that there's no inflation protection. It should be part of an overall plan.
