MassMutual introduces a chronic care benefit available @work to provide financial support to individuals and families facing hurdles due to chronic illness
- Four out of five (79%) are concerned about suffering a chronic or long-term condition or illness as they age, with one-third (32%) being ‘very concerned.’
- More than half (57%) reported that at least one member of their family has experienced the need for chronic care.
- Among the top concerns about the need for chronic care in retirement are the expense of needing care for several months or years (28%), losing the ability to remain independent (25%) or remain active (18%), and becoming isolated at home or a nursing home (14%).
SPRINGFIELD, Mass., June 16, 2020 – With so many Americans concerned about needing chronic care as they age according to a new study1 by Massachusetts Mutual Life Insurance Company (MassMutual), the company has introduced a new chronic care benefit for life insurance certificates available through the workplace to add to its suite of solutions for aging individuals.
Chronic illness means the insured is permanently unable to perform without substantial assistance at least two activities of daily living (ADLs) (bathing, dressing, eating, transferring, toileting and continence) due to loss of functional capacity, or needing substantial supervision to protect the insured due to a permanent severe cognitive impairment.
According to MassMutual research, more than half (57%) reported that at least one member of their family has experienced the need for chronic care and to cover the associated costs with chronic illness or physical disability after age 65, nearly two in five (39%) tapped into their retirement savings.
“Our new chronic care benefit is designed to provide financial support through another benefit that many already have through their workplace – life insurance,” said Shefali Desai, head of worksite, MassMutual. “Sadly, many Americans will be diagnosed with a chronic illness, which can be costly and pose an emotional and financial burden on families.”
The benefit is available on all new and inforce (existing) group whole and group universal life insurance certificates and will allow certificate owners to receive a lump sum advance, or acceleration, of a portion of their certificate’s death benefit to use as needed if they are chronically ill1. Importantly, a certificate owner pays for the benefit only if they use it, and there are no additional out-of-pocket costs.2 The accelerated life insurance benefit is neither long term care insurance nor nursing home care insurance. For those who qualify, the chronic care benefit can be used as needed by the certificate owner, such as making home alterations to accommodate a disability or hiring a home assistant.
“This new benefit is yet another demonstration of MassMutual’s commitment to helping people as they age,” said Paul Lapiana, head of product, MassMutual. “The need for chronic care can be one of the most significant challenges a person can face in their lifetime, and we remain steadfast in our longtime commitment to providing options for financial support.”