Updated ExtendCare Per Diem

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The Internal Revenue Service (IRS) recently announced upcoming changes to the per diem limitations for periodic payments received under qualified long-term care insurance policies and certain life insurance policies which offer accelerated death benefits for chronic illness care.

The 2021 per diem limitation for periodic payments from these types of policies will increase from $380 to $400. This increase will offer clients the opportunity to access up to $12,000 of their policy’s death benefit each month through ExtendCareSM, a chronic illness protection rider available with the purchase of new universal life insurance policies from Protective Life.

About ExtendCare
ExtendCare is an optional rider that allows your clients to advance their policy’s death benefit to use for any potential chronic illness needs. Should the insured become chronically ill1, as certified by a licensed physician, the policy death benefit can be accessed after a waiting period of 90 days.2 This rider is only available at policy issue for applicants between the ages of 20 – 80, at an additional cost. With ExtendCare, your clients can:

  • Access a monthly benefit amount, up to $12,0003
  • Receive monthly benefit payments directly
  • Pay for family and informal care
  • Use their benefit for medical or non-medical expenses
  • Cover expenses without providing proof of care
  • Leave any unused portion of the death benefit for loved ones

For more information about ExtendCare, please contact your Protective Life representative.

1 Chronically ill is defined as being unable to perform at least two of six Activities of Daily Living without assistance for 90 days, or requiring supervision for protection against health and safety threats due to severe cognitive impairment.
2 A 90-day waiting period must pass between the time the company receives written certification of the insured’s chronic illness status and the time the first accelerated death benefit (ADB) payment is made.
3 Monthly benefits are subject to change.
This is only a summary of ExtendCare benefits. Actual terms and conditions contained in the rider govern all benefits provided. Please see the rider for more detailed information. Available only at issue and at an additional cost. Assumes medical and financial underwriting qualifications at time of initial application.