Comprehensive LTC Rider Changes in CA

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IMPORTANT LTC RIDER UPDATES

We’re committed to providing you and your customers quality protection, products, and services you can count on. As a reminder, beginning December 5, in the state of California, the Comprehensive Long Term Care Rider on the Transamerica Financial Foundation IUL® (FFIUL) will be updated to meet new California guideline AB-1209. While it’s mostly similar to the current Comprehensive LTC Rider on the FFIUL in California, there are a couple key changes to be aware of, including:

  • Allows for loans to be taken when on LTC claim
  • New LTC Rider rates changed to level and actuarially equivalent to the prior rates
  • No LTC Rider charges past age 100
  • LTC Rider charge is based on the Net Amount at Risk; if NAR decreases, then the charge decreases
  • Target premiums and minimum no-lapse premiums will increase in line with the rider charge 

TRANSITION RULES 

Effective date for the NEW Comprehensive LTC Rider and rates is December 5, 2020. All applications submitted on December 5, 2020, and after will automatically be assigned the new Comprehensive LTC Rider (LTCR03 CA REV-R0220) and new rates associated with this rider.  

The transition guidelines for the updates to the Comprehensive LTC Rider in California are listed below.  

To receive the CURRENT LTC Rider and rates:  

  • The application must be signed, submitted, and received by the Home Office on or before December 4, 2020
    • All iGO submissions must be signed and submitted to Transamerica on or before December 4, 2020, by 11:59 p.m. ET
    • All paper applications must be signed and received in the Home Office on or before December 4, 2020, by 4 p.m. ET
  • Underwriting requirements will need to be met by December 18, 2020
  • All requirements for policy placement must be met by December 28, 2020, to ensure placement by December 31, 2020
  • Any applications not placed by December 31, 2020, can be amended to continue processing with the new rider and rates, subject to underwriter approval (a revised illustration may be required)