Step-Rated Compound Benefit Increase Option – affordable cost, flexibility and benefit growth
Because many policy holders will own their polices for 10, 20, or even 30+ years before they file a claim, they are often searching for a policy with benefits that can keep up with the cost of inflation. But a traditional Compound Benefit Increase Option (CBIO) may be too expensive. In these turbulent times, LTCi solutions that your clients can count on and that are within their budget are worth talking about.
Consider this…
Kathy and Ted are taking care of Ted’s parents and know they want a plan in place for their own future that doesn’t rely entirely on their children. Ted recently started his own business and he expects his income to steadily rise in the coming years. Step-rated CBIO gives them an affordable starting premium now, with steady growth that they can monitor and fund as their income rises. If Ted’s business has a down year, they can decline the benefit increase that year while retaining the right to accept the next year’s increase. Transamerica’s Step-rated CBIO Rider has the perfect balance of affordability and future benefit growth to help solve Kathy and Ted’s needs.
STEP-RATED BENEFIT INCREASE OPTION*
With the Step-Rated Benefit Increase Option, the premium begins at a lower starting rate and every year on the policy anniversary, the daily benefit, total policy maximum amount, and premium will increase by either 3% or 5% of the current year’s benefit, based on which percentage was selected at issue. Your clients will have automatic increases every year unless they choose not to accept those increases.
With TransCare® II Step-Rated Benefit Increase Option Rider your client has the choice to keep up with inflation at a reduced initial cost on a “pay as you go” basis.
The Rider also has an “opt out” feature, meaning that policyholders may stop and start the benefit increases whenever they choose**. If your client has unexpected expenses in a given year, the increase can be declined for a year or two while still retaining the right to accept the offer in the following year.
There is no limit to the number of times policyholders may stop and start the increases under this Rider.
This puts the policyholder in charge of their benefits and premiums.
Transamerica Long Term Care provides you with a well-trusted brand, strong and flexible product, strategic marketing and step-by-step support. For more information on the Step-Rated CBIO Rider, review the Inflation Protection Training Module and then download A New Way to Think About Long Term Care.