Long Term Care and Life Insurance Benefits
CMSU's Long Term Care and Life Insurance Benefit is a voluntary hybrid plan that is one policy with two benefits—life insurance for your family and long term care benefits if you need them. It is offered through Trustmark. The life insurance portion of this benefit will not replace your existing life insurance that CMSU provides, but is in addition to your existing life insurance.
Why You May Need Long Term Care and Life Insurance
It is estimated that 7 out of 10 people over the age of 65 are expected to need long term care services at some point in their lifetime. The average cost of long term care services is $43,000 or more per year. These services are not covered by health insurance, disability insurance, or Medicare. If you are concerned about having to spend down your savings or burdening family members because you may need long term care services, you may want to consider the new voluntary plan.
When a family loses someone, in addition to grief, survivors may suddenly be faced with costly expenses and debts, and even a loss of income. Life insurance can help. Life insurance provides a higher death benefit during your working years, when your needs and responsibilities are the greatest. You can choose a plan and benefit amount that provides the right protection for you.
Who Is Eligible
- CMSU employees age 18-70 and working at least 20 hours per week. You may request life insurance coverage amounts up to the $150,000 maximum.
- Spouses and domestic partners. If you are enrolled, you may request life insurance coverage amounts for your spouse or domestic partner up to the $150,000 maximum.
- Children and dependent grandchildren up to age 23. If you are enrolled, you may request life insurance coverage amounts for your child or dependent grandchild up to $40,000.
How to Enroll
If you are new to CMSU, you will have an opportunity to enroll yourself with a guaranteed issue (no health questions asked) at a designated time period during your year of hire. You will also be able to enroll your spouse/domestic partner, children, and grandchildren with limited health questions, subject to approval by Trustmark. The Benefits Department will send you an email with the enrollment period and enrollment website.
All other employees will have an annual opportunity to enroll in the plan during the annual Open Enrollment period. Coverage is not guaranteed. Trustmark will ask you to answer limited health questions before approving coverage.
To review your benefit options and cost and to enroll for coverage, visit the Trustmark website.
How the Plan Works
At the time you enroll, you will be able to choose your life insurance benefit (amounts are available up to a maximum of $150,000). The long term care benefit is an acceleration of the death benefit. You may enroll yourself, your spouse or domestic partner, and your children and dependent grandchildren. Your premiums are paid through convenient after-tax payroll deductions.
If you qualify for long term care (LTC) benefits, the plan will pay 4% of your life insurance amount each month, up to a maximum of one times your life insurance amount. For example, if your life insurance amount is $100,000, your monthly LTC benefit would be $4,000 and your maximum long term care benefit is $100,000.
A death benefit is available even if you collect benefits for long term care.
If you leave CMSU, the plan is fully portable, so you may take the plan with you at the same cost.
Using Your Long Term Care Benefits
LTC benefits can be used for home care, assisted living care, nursing facility care, and adult day care. There is a one-time 90-day waiting period before LTC benefits will begin.
If you qualify for LTC benefits, you will receive a check for your monthly benefit, for up to a maximum of 25 months.
While the average cost of care nationally is $43,000 per year, costs can vary based on services received and geographic location. Here is an example of the benefit payout structure:
| Example |
Indemnity Payout |
| Available Monthly Benefit |
$4,000 |
| Licensed Care Expenses |
$3,000 |
| Unused Monthly Benefit |
$1,000 |
| Available Cash After LTC Expenses |
$1,000 |
How to Qualify for Long Term Care Benefits
You may qualify for LTC benefits if you have severe cognitive impairement (Alzheimer's or dementia) OR the inability to perform two of six activities of daily living and help is expected to last at least 90 days. Activities of daily living are bathing, transferring, eating, toileting, continence, and dressing.
In all cases, the plan requires that a licensed health care practitioner prescribe a plan of care.
How to File a Claim
To file an LTC or life insurance claim, contact Trustmark Claims at 877-201-9373 or go to Trustmark's website.
For more information
Contact Trustmark at 800-918-8877
View your benefit elections online at the Trustmark website