SOURCE: Pacific Life Insurance Company

Pacific Life Insurance Company

April 18, 2012 08:30 ET

Rising Long-Term Care Costs Could Impact Retirement

Pacific Life Insurance Company's Universal Life Insurance With Long-Term Care Benefits Defends the Dream

ALISO VIEJO, CA--(Marketwire - Apr 18, 2012) - A volatile stock market, a sluggish economy, a weak employment outlook -- saving and planning for retirement is tougher than ever. Now, the retirement dreams of 7 out of 10 Americans 65 and older who may need some type of long-term care,1 are impacted by the rising cost of that care.

The long-term care price tag in the United States is growing by 4.05% annually and premiums for traditional long-term care insurance are increasing dramatically.2

How do you help defend retirement against the cost of long-term care?
What if you insure and never use it?

Pacific Life Insurance Company provides answers with a universal life insurance policy that includes long-term care benefits. With one premium payment,3 Pacific PremierCare:4

  • Increases the funds available for long-term care expenses5, 6 or
  • Pays death proceeds to beneficiaries6 or
  • Returns the initial premium payment if the policy is no longer wanted or needed.6

"Pacific PremierCare deals with a problem that nobody wants to think about, much less talk about," said Alyce Peterson, a spokesperson and vice president of marketing services for the Life Insurance Division of Pacific Life. "You retain the policy as an asset, and you have control over how to use the benefits, should you need them. With this one product, you can check the long-term care worry off your retirement to do-list."

Life insurance producers can learn more about Pacific PremierCare and order the free Defend Retirement kit by visiting

About Pacific Life
Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life counts more than half of the 100 largest U.S. companies as its clients.7 For additional company information, including current financial strength ratings, visit Pacific Life online at

1. 2011 Sourcebook for Long-Term Care Insurance, American Association for Long-Term Care Insurance.

2. Source: 2011 Sourcebook for Long-Term Care Insurance, American Association for Long-Term Care Insurance. Average annualized increase of nursing home cost in the United States from 1994 to 2010 of 4.05% annually.

3. Only one premium is necessary to fund Pacific PremierCare. While this product allows additional premiums, they are not required and do not provide additional Long-Term Care Benefits, a greater Return of Premium Benefit, or increased Death Proceeds (unless a subsequent increase in the policy's cash value requires a death benefit increase to satisfy IRC Section 7702 requirements). Once a sufficient premium has been paid, the long-term care coverage will continue as long as the insured lives; or until the policy is surrendered at the owner's request; or until the maximum long-term care benefits have been paid; or until policy lapse. Policy charges (cost of insurance and coverage charges) are deducted from the policy's accumulated value on a monthly basis. Policy lapse will only occur where the policy's cash value less policy debt is not sufficient to cover monthly policy charges. Prior to lapse, the policy provides 61 days to pay premium sufficient to keep the policy in force.

4. Pacific Life Insurance Company's Pacific PremierCare (Policy Form #P11PPC or ICC11 P11PPC -- policy form number based on state in which policy is issued) is a flexible premium adjustable life insurance policy with long-term care insurance payable through reimbursements. Pacific PremierCare is not a Partnership Qualified product. For more information on Partnership Qualified products, please contact your state department of insurance. This policy has certain exclusions and limitations. For costs and complete details of the coverage, contact your life insurance producer. Pacific PremierCare is intended to provide federally tax-qualified long-term care insurance as defined in IRC Section 7702B(b). If there are any questions concerning the tax implications of this product, an attorney or qualified tax advisor should be consulted. Exclusions, Exceptions, and Limitations: We will not pay benefits for any room and board, care, treatment, services, equipment, or other items for care or services: 1)provided by the Insured's Immediate Family unless he or she is a regular employee of an organization which is providing the treatment, service, or care; and the organization receives the payment for the treatment, service or care; 2)for which no charge is normally made in the absence of insurance; 3)provided outside the United States of America, except as described in the International Benefit; 4)that result from an attempt at suicide (while sane or insane) or an intentionally self-inflicted injury; 5)provided in a governmental facility (unless otherwise required by law); 6)for which benefits are available under Medicare or other governmental program (except Medicaid), any state or federal workers' compensation, employer's liability or occupational disease law, or any motor vehicle no-fault law. No benefits will be paid for services received while the Accelerated Benefit Rider (ABR) for Long Term Care and the Extended Benefit Rider (EBR) for Long Term Care are not in force. Pacific PremierCare is subject to underwriting and approval of the application. No medical exam is required, but a Medical Information Bureau (MIB) and prescription report will be ordered and a Personal History Interview and Cognitive Assessment will be performed via telephone as part of the underwriting process.

5. Reimbursements for covered long-term care expenses are subject to an elimination period and are provided by the Accelerated Benefit Rider (ABR) for Long Term Care (Form #R11ABR or ICC11 R11ABR) and the Extended Benefit Rider (EBR) for Long Term Care (Form #R11EBR or ICC11 R11EBR) (Rider form numbers vary based on state in which policy is issued.) The amount and duration of the maximum long-term care benefits will be based on the benefit options elected at time of application. Coverage elected for longer than two years is only provided through a combination of the ABR and EBR. Actual amount and duration of long-term care benefits will vary based on the use of policy benefits and features. Covered long-term care expenses will be reimbursed until the total long-term care benefits are exhausted, which may vary from the elected duration. Premiums for long-term care benefits will vary depending upon the benefit options elected. Charges for the ABR, EBR, and any Inflation Benefit Option are included in the initial premium payment.

6. Policy Benefits are reduced by any policy loans, withdrawals or terminal illness benefit paid under the policy. Death Proceeds and Return of Premium Benefit will be reduced when long term care benefits are taken.

7. Pacific Life refers to Pacific Life Insurance Company and its affiliates. Client count as of May 2011 is compiled by Pacific Life using the 2011 FORTUNE 500® list.

Pacific Life Insurance Company is licensed to issue insurance products in all states except New York. Product availability and features may vary by state. Insurance products and their guarantees, including optional benefits and any fixed subaccount crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company. Look to the strength of the life insurance company with regard to such guarantees as these guarantees are not backed by the broker-dealer, insurance agency or their affiliates from which this product is purchased. Neither these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the life insurance company.

Pacific Life Insurance Company, Newport Beach, CA.

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