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CNA Creates Pre-Payment Option for LTC Insurance

Tue, 09/12/2000 - 11:00pm — Karen Stevenson
Description: 

CNA LTC, the long-term care insurance unit of CNA Financial Corporation, is introducing a Limited Payment Option that allows clients to pay for their long-term care insurance while they are still in their peak earning years. CNA LTC's Limited Payment Option includes two payment plans. Clients who are age 18-84 years of age may qualify for the Ten-Pay plan, which allows them to make payments for 10 years. The "To Age 65" plan is for clients under age 55 and provides for premium payments made until the client reaches age 65. At that time the policyholder is covered without paying any additional premiums. Both plans have a five-year rate guarantee, subject to individual state approval. Existing CNA LTC clients who have just been issued a policy or who are in their first policy year will be able to take advantage of the Limited Pay Options.

CNA was a pioneer in writing personal insurance policies covering nursing home costs, starting back in 1965. CNA had been exploring a sale of its long term care business, but recently decided they will retain the individual life, long term care and retirement services businesses, although they will continue to consider the sale of the viatical settlements and life reinsurance businesses.

CNA LTC, the long-term care insurance unit of CNA Financial Corporation, is introducing a Limited Payment Option that allows clients to pay for their long-term care insurance while they are still in their peak earning years. CNA LTC's Limited Payment Option includes two payment plans. Clients who are age 18-84 years of age may qualify for the Ten-Pay plan, which allows them to make payments for 10 years. The "To Age 65" plan is for clients under age 55 and provides for premium payments made until the client reaches age 65. At that time the policyholder is covered without paying any additional premiums. Both plans have a five-year rate guarantee, subject to individual state approval. Existing CNA LTC clients who have just been issued a policy or who are in their first policy year will be able to take advantage of the Limited Pay Options.

CNA was a pioneer in writing personal insurance policies covering nursing home costs, starting back in 1965. CNA had been exploring a sale of its long term care business, but recently decided they will retain the individual life, long term care and retirement services businesses, although they will continue to consider the sale of the viatical settlements and life reinsurance businesses.