MMC Benefits Handbook
Cost of Coverage
Premium rates, benefits and any restrictions that apply are included in the Information Kit or at the website, www.mmcvoluntarybenefits.com. The insured pays the cost of the Long Term Care Insurance. The cost of coverage depends on the options selected and the age of the applicant. Each covered family member has his or her own cost based on the below factors listed below.
Levels of Coverage
You can create a personalized plan by choosing from these levels or options of coverage.
Two Levels of Coverage:
- 3 years (36 months), 75% Facility Care Maximum (FCM) Home & Community Care, Informal Care Included
- 5 years (60 months), 75% FCM Home & Community Care, Informal Care Included
Four Levels of the Facility Care Maximum (FCM):
- $3,000 monthly benefit option
- $4,500 monthly benefit option
- $9,000 monthly benefit option
- $12,000 monthly benefit option
Three Inflation Protection Options:
- Buy More Coverage Over-Time – Future Purchase Option Benefits
- Automatic 3% Compound Benefit Increases for Life
- Automatic 5% Compound Benefit Increases for Life
Nonforfeiture Benefit Included
This benefit allows the insured to retain partial coverage if he or she decides to cancel his or her long term care coverage after it has been in force for more than three years.
Can I pay for coverage through payroll deductions?
You can pay for coverage through the following:
- you can pay for your coverage(s) for you and your spouse or approved Domestic Partner through payroll deductions.
- your eligible family members can be billed for their coverage quarterly, semi-annually or annually.
When does my cost of coverage change?
Your premiums are based on the coverage level you choose and your age as of the application date. Your premium may increase:
- if Long Term Care Insurance rates are adjusted on a class basis for all participants. (These adjusted rates will be passed on to all participants.)
- if you buy additional coverage; your age as of the effective date of the increase will determine the price for the additional coverage.
Will my cost for coverage increase as I get older?
Generally, your cost for coverage remains unchanged. However, if you elect the Buy More Coverage Over Time – Future Purchase Option, inflation protection feature, your cost for this increased coverage will be based on your age as of the effective date of the increase in coverage and reflects the additional cost associated with providing coverage to persons in your age category.
Are my premiums waived while I`m receiving benefits?
Yes, your premiums are waived for you while you are receiving benefits for facility care, home and community care, hospice care, or the bed reservation benefit. Your premiums will start again the first day of the month on or following the date you are no longer certified as chronically ill.
You should contact Genworth regarding qualifying benefits.
Do I pay with before-tax or after-tax dollars?
You make Plan payments with after-tax dollars.
There is potential favorable federal income tax treatment of your Long Term Care Insurance premiums:
- a portion of your premium paid may be tax deductible. If your eligible premium, in conjunction with other medical expenses, exceeds 7.5% of your adjusted gross income and does not exceed dollar limits as specified by the IRS, it will be tax deductible if you itemize your taxes. (There are caps on the amount that can be deducted, based on your age.)
- benefits you receive will generally not be considered taxable income, provided that they are within IRS limits or that amounts in excess of the IRS limits are used for medical care.