Securian Hybrid Long-Term Care Insurance Review

Securian Long-Term Care Insurance Plan Options

SecureCare III is Securian’s “nonparticipating whole life insurance policy with cash indemnity long-term care benefits.”2 Customizable and flexible, SecureCare III links long-term care insurance with life insurance. In other words, it’s two types of insurance coverage in one policy — also called a hybrid, or linked, policy.

SecureCare III can be used for all qualified long-term care services, including in-home services such as home health care, household services, or informal care. It can also be used for out-of-home services such as adult day care, assisted living, bed reservation, hospice, nursing home care, and respite care.

The issue age is 40 to 75, which is stricter than some other LTC insurance policies we’ve reviewed. Mutual of Omaha offers LTC plans to people between ages 30 and 79, for example.

SecureCare III Built-In Features and Benefits

All SecureCare III plans include the following features and benefits:

• Cash-indemnity long-term care: SecureCare III is a cash-indemnity policy, not a reimbursement policy. Once you’re on claim (qualified to receive benefits), you get a monthly check for the amount you choose up to your maximum benefit. You don’t need to track your expenses or request reimbursement. You can spend the money — or save it! — for whatever services and care you need, even if you’re just paying a family member to look after you. We like that this feature makes using your LTC benefits flexible and hassle-free.
• International benefits: You can use your SecureCare III LTC benefits abroad, but you won’t receive as much as you would if you remained in the U.S. Insured policyholders can get 50 percent of their maximum monthly benefit outside the United States.
• Elimination period: Your elimination period starts the day a licensed health-care professional certifies that you’re chronically ill and require long-term care. It lasts for 90 days, during which you can receive benefits only for home modification (up to $5,000) and caregiver training ($1,000).
• Guaranteed minimum death benefit: When the policyholder passes away, the beneficiary receives a guaranteed death benefit. At a minimum, your beneficiary would receive the lesser of 10 percent of the base policy face amount or $10,000.
• Care Management Program: All policyholders can speak with Securian’s Care Management Program team. They can help you understand your policy and locate nearby care.
• Acceleration for long-term care agreement: The premium you pay toward the long-term care part of the policy is considered a medical expense by the IRS. You may be able to deduct it from your taxes.
• Extension of long-term care agreement: This benefit also makes a portion of your long-term care premium tax deductible if you meet other IRS criteria.

SecureCare III Plan Choices

Policyholders can choose from three return of premium (ROP) options. The option you choose affects your death benefit and your policy’s surrender value.

• Vesting: You’ll get a 100 percent premium refund if the policy is canceled (subject to vesting schedule). This is recommended for individuals who want LTC protection and all their money back if they cancel.
• 75 percent: You’ll get a 75 percent premium refund if the policy is canceled. It increases the LTC benefit above vesting. This is recommended for enhanced LTC protection and getting most of your money back if you need it.
• LTC boost: The premium return is equivalent to the policy’s guaranteed cash value and maximizes the LTC benefit. It’s recommended for individuals who want to purchase the most LTC coverage for the least amount of money.

You’ll also need to choose a benefit period option and the face amount for your policy.

Choose a four-, five-, six-, seven-, or eight-year benefit period. If you opt to receive less than your maximum monthly benefit amount while you’re on claim, you can receive benefits for longer. Available face amounts for the hybrid policy range from $50,000 to $500,000, which is the amount of death benefit you’re buying when you take out the policy.

Available Riders

You can customize your plan further by adding riders or agreements, but Securian doesn’t offer as many riders as other providers we’ve reviewed, such as Thrivent and National Guardian Life.

Available riders include:

• Inflation protection: Add this rider to increase your monthly LTC benefit by a set percentage each year. Choose 3 percent or 5 percent, and simple or compound interest. National Guardian Life offers a similar rider.
• Premium waiver: Add this rider to waive your premium payments if you start claiming benefits before paying for your policy in full.

Securian Long-Term Care Insurance Cost

The average cost of a long-term care insurance plan for a 65-year-old can be anywhere from $1,700 to $7,225 per year.3 Does Securian fall somewhere in that range? It’s hard to know because the company doesn’t offer transparent pricing.

We did, however, learn that in January 2023, Securian reduced costs by 25 percent for all applicants, making SecureCare III a competitive hybrid LTC policy.4 Securian policies tend to offer more value than their direct competitors, including Nationwide’s Care Matters II cash-indemnity policy.

To find out your cost, you’ll need to work with an agent and apply for a plan. Factors such as your smoking status, health history, the options you select, and whether you’re applying as a single person or couple will affect your premium.

Securian also offers payment flexibility. You can pay for your policy in one lump sum (the most inexpensive choice), or over five, seven, 10, or 15 years. If your finances change and you can’t afford your premiums, you’re not stuck. You can switch to a plan with a small benefit amount based on the premiums you’ve already paid, or you can surrender your policy and get money back based on your return of premium option.

Underwriting

Securian Financial’s insurance products, including SecureCare III, are issued by Minnesota Life Insurance Company. The simplified issue underwriting process is pretty straightforward.

Securian requires an application and a 45-minute tele-interview to discuss your medical and personal history. During the interview, the underwriter will ask you about:5

• Where you live and the living arrangement
• Military service
• What hobbies, sports, and other activities you do
• Driving history
• Chemical or substance use
• Your medical history and your immediate family’s medical history
• Your current prescriptions
• Physical measurements, including height and weight

Applicants age 56 or older must also complete a cognitive assessment. Finally, the underwriter may request more information from you or your medical records. You won’t need to undergo an exam or get labs, which other providers, such as National Guardian Life, may require.

After you undergo underwriting, your application will either be approved or denied. If you’re approved, Securian will place you in an underwriting class to determine your rate. The classes are divided based on sex, tobacco usage, and single or couple status.

Some commonly denied health conditions include congestive heart failure, Type I diabetes, organ transplant recipient, stroke within the past 12 months, BMI less than 17 or greater than 42, and history of falls due to dizziness.

Securian Customer Satisfaction

Securian Financial is financially stable. Its subsidiaries, Minnesota Life Insurance Company and Securian Life Insurance Company, are rated highly by third parties.6

• AM Best: A+ (Superior)
• Fitch Ratings: AA (Very Strong)
• Moody’s Investor Service: Aa 3 (Excellent)
• Standard & Poor’s: AA- (Very Strong)
• Comdex ranking: 96 (out of 100)
• BBB: A+

Mutual of Omaha, for comparison, is rated A+ (Superior) by AM Best, while National Guardian Life ranks A (Excellent).

You can certainly trust Securian with your money, but your experience as a customer may vary. There are very few complaints lodged against Securian with the National Complaint Index; the company registers a complaint index of only 0.22 (far less than the average of 1).7 A look at their Better Business Bureau page, however, shows some dissatisfied customers. At the time of writing, a total of 39 customer reviews resulted in a rating of 1.05 out of 5.

Final Thoughts

Securian claims that its SecureCare III hybrid LTC insurance policy offers flexibility, freedom, and protection. After reviewing the company’s policy, we’d have to agree!

With Securian, you have the freedom to choose your return of premium option, riders, benefit period, and payment schedule, as well as the flexibility to use your monthly LTC benefit as you see fit with no tracking receipts or fighting to get specific services or facilities covered. Your money is also protected, whether or not you need long-term care benefits.

Even though Securian offers only a single hybrid LTC policy, it’s a unique product delivering excellent value compared to its direct competitors. If you’re looking for a hybrid long-term care policy with cash indemnity, Securian’s SecureCare III policy is worth looking into.

Our Methodology

When reviewing LTC insurance offerings, we look at the benefits and value the plan delivers. Specifically, we consider how easy the plan is to understand and use; its availability, optional offerings, features, and benefits; the underwriting process; and independent ratings. All those details informed the star rating we assigned to Securian’s hybrid LTC insurance offering.