Recent trends in whole life insurance riders in Washington State
Summary
A slide presentation titled “Recent trends in whole life insurance riders in Washington State,” dated December 2022. The slides define a Life Policy with Long-Term Care Rider and an Accelerated Death Benefit under WAC 284-23-620, and compare the two in a table covering payment, benefit eligibility and filing with the Office of Insurance Commissioner. A slide on policy counts nationally and statewide, 2020 vs. 2021, states that Washington state saw increases over 2020 in Life LTC Hybrid policies (704%) and Stand-Alone LTC policies (100%), and that Washington state was responsible for more than half of all national growth in Life LTC Hybrid policies. The closing slide lists contacts Ned Gaines and M. Todd Dixon.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- 2022 12 02 A30165 D246745 Oic Recent Trends In Whole Life Insurance Riders In Wa State
- Date
- 2022-12-02
- Case
- 2022 12 02 A30165 D246745 Oic Recent Trends In Whole Life Insurance Riders In Wa State
Cite this document
“Recent trends in whole life insurance riders in Washington State.”
Original at app.leg.wa.gov, dated 2022-12-02. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-12-02-2022-12-02-a30165-d246745-oic-recent-trends-in-whole-life-insurance-riders-in-wa-state/
, SHA-256 041b2e02a26da9350412900347ab5861fc5a9ba5eaabcd10d9c40859c12bd47e.Full text
Recent trends in whole life insurance riders in
Washington State
What is a Life Policy with Long-Term Care Rider?
• A Life Insurance Policy with Long-Term Care Rider is an
insurance policy covering the life of the insured with an
additional coverage rider providing benefits for long-term
care through an acceleration of the policy’s death benefit.
Recent trends in whole life insurance riders in Washington State December 2022 2
What is an Accelerated Death Benefit?
• Per WAC 284-23-620, an Accelerated Death Benefit means:
• Benefits payable to the insured under an individual or group life
insurance policy in anticipation of death or occurrent of certain
specified life threatening, terminal or catastrophic conditions
through a reduction of the death benefit otherwise payable
under the life insurance policy
• Payable upon the occurrence of a single qualifying event
Recent trends in whole life insurance riders in Washington State December 2022 3
Accelerated Death Benefits vs LTC Riders
Accelerated Death Benefit Life Policy with LTC Rider
• Typically paid in a lump sum • Not paid in a lump sum but in
installments as care is provided
• Does not condition the benefits or the
eligibility for the benefits upon the • Benefit eligibility requires diagnosis of
receipt of long-term care (cognitive cognitive impairment or loss of
impairment or loss of functional functional capacity
capacity)
• Rider must comply with all
• Compliance with Chapter 48.83 RCW requirements of Chapter 48.83 RCW
& Chapter 284-83 WAC not required and Chapter 284-83 WAC
• Not required to be filed as a Long- • Must be filed with the Office of
Term Care policy with the Office of Insurance Commissioner as a Long-
Insurance Commissioner Term Care policy
Recent trends in whole life insurance riders in Washington State December 2022 4
Policy counts nationally and statewide 2020 vs. 2021
National Washington
Policy Type
2020 2021 2020 2021
Life LTC Hybrid 977,957 1,192,338 16,256 130,762
▲ 214,381 ▲ 114,506
Stand-Alone LTC 3,609,775 3,600,176 102,445 204,489
▼9,579 ▲ 102,044
Annuity LTC Hybrid 879,339 989,802 1,083 1,138
▲ 110,463 ▲ 55
• Washington state saw drastic increases over 2020 in both Life LTC
Hybrid policies (▲704%) and Stand-Alone LTC policies (▲100%).
• Washington state was responsible for more than half of all national
growth in Life LTC Hybrid policies.
• Annuity LTC Hybrid polices remain the least popular option with WA
consumers and didn’t see significant increases in WA.
Recent trends in whole life insurance riders in Washington State December 2022 5
Resources
• What qualifies as long-term care insurance?
• https://www.insurance.wa.gov/what-qualifies-long-term-care-insurance
• Long-term care insurance companies approved to sell in Washington
state
• https://www.insurance.wa.gov/long-term-care-insurance-companies-approved-
sell-washington-state
• Publications
• Long-term care options workbook [PDF]
• https://www.insurance.wa.gov/sites/default/files/documents/long-term-care-
workbook_0.pdf
• Consumer’s guide to: Buying long-term care insurance [PDF]
• https://www.insurance.wa.gov/sites/default/files/documents/long-term-care-
guide_3.pdf
Recent trends in whole life insurance riders in Washington State December 2022 6
Questions?
Ned Gaines
Forms Compliance Manager
Rates, Forms, and Provider Networks
Ned.Gaines@oic.wa.gov
M. Todd Dixon
Deputy Insurance Commissioner
Consumer Protection
Todd.Dixon@oic.wa.gov
Connect with us!
• Facebook: https://www.facebook.com/WSOIC
• Twitter: https://twitter.com/WA_OIC
• www.insurance.wa.gov
Recent trends in whole life insurance riders in Washington State December 2022 7
File and source
- File
- 2022-12-02_a30165_d246745_oic-recent-trends-in-whole-life-insurance-riders-in-wa-state.pdf
- Size
- 468,252 bytes
- SHA-256
- 041b2e02a26da9350412900347ab5861fc5a9ba5eaabcd10d9c40859c12bd47e
- Original
- app.leg.wa.gov