Transamerica Long-Term Care Insurance & Living Benefits

Transamerica long-term care insurance left the market in 2021.

In this article, we share information about the old products and show you what Transamerica offers today with their living benefit riders available for term, universal, and whole life insurance.

Understanding Transamerica Long-Term Care Insurance

In January 2021, Transamerica announced it would discontinue TransCare’s long-term care insurance policies.

Since leaving the LTC market, Transamerica has focused on providing living benefits with its life insurance policies.

  • Trendsetter LB Term Life Insurance
  • Financial Choice IUL
  • Financial Foundation IUL
  • Lifetime Whole Life

TransCare Individual LTC Policy

The TransCare II and TransCare III policies were available until early 2021.

Some of the highlights of these policies included:

  • Max Daily Benefit from $50 – $500
  • Pool of Money Available up to $876,000
  • Elimination Periods from 0-180 Days
  • Optional Care Coordination
  • Waiver of Premium
  • Joint Waiver of Premium
  • Shared Care Benefits
  • Return of Premium upon death
  • Monthly Benefit Rider
  • Nonforfeiture Benefits
  • Benefit Increase Options (BIO)
  • Home & Community-Based Care
  • Bed Reservations
  • Respite Care
  • Return of Premium
  • 5-Year Rate Guarantee

TransCare long-term care insurance policies were popular.

Additional features included spousal and preferred health discounts.

Accessing Transamerica LTC Services

If you need help with your Transamerica long-term care policy, follow the trail, as the servicer has changed multiple times since 2019.

Back in 2019, Transamerica offloaded the servicing of its LTC policies to a group called LTCG.

More recently, in 2022, a company called Illumifin acquired LTCG.

Transamerica Long-Term Care Claims

If you need to file a claim for long-term care insurance, contact Illumifin at 877-431-5824

The address for illumifin is:

935 S. Main Street
Greenville. SC 29601

Transamerica’s website for Long Term Care Insurance is – www.illumifin.com

Just a quick note: Transamerica’s websites seem to have tried hard to distance itself from LTC, as it was difficult to find any information here for existing policyholders.

Are Living Benefits the Same as LTC?

No, living benefits differ from individual long-term care insurance like the old TransCare policies.

The old standalone LTC policies offered by companies like CNA, Genworth, John Hancock and Transamerica sounded great, unfortunately they all mispriced their policies leaving consumers with unaffordable policies, resulting in significant premium increases and/or benefit decreases.

Today’s best policies are hybrid life insurance policies like Nationwide CareMatters II, Lincoln MoneyGuard Fixed Advantage, and OneAmerica Asset Care, because the policies offer guarantees that stand alone policies refused to offer.

Not even the partnership policies offered by states like California Long-Term Care could avoid the LTC disaster that took place.

Living Benefits from Transamerica

Living benefits are available with the following types of life insurance – term life, universal, or whole life insurance policies.

The Trendsetter LB Term life insurance policy is one of the few term policies that offer living benefits.

Universal policies with living benefits include the Financial Foundation IUL, Financial Choice IUL, and the Lifetime Whole Life policy.

The following are general descriptions of living benefits as there are variations by state and product.

Terminal Illness – If the insured has been diagnosed with a terminal illness with less than 12 months to live, 100% of the death benefit or $1.5 million, whichever is less, may be paid out.

Chronic Illness – Similar to traditional LTC requirements, if you are unable to perform 2 of 6 Activities of Daily Living, death benefits may be accelerated. The maximum over one year is 24% of the face and 90% over the lifetime.

Critical Illness – If you are diagnosed with an illness that would cause your death within three months if untreated, you may qualify for critical illness benefits. If the insured has been diagnosed with a critical illness, 90% of the death benefit or $1.5 million, whichever is less, may be paid out.

Final Thoughts

While standalone LTC products by Transamerica are no longer available, the living benefit products are worth your consideration.

Living Benefit policies are slightly more expensive than traditional term but offer a lot of value that it worth a quote!

It will be interesting to see how these policies compare to new policies soon to be offered by CareScout.

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