Zero Cash Value Life Insurance
Krause Financial Services offers two Single-Pay, Zero-Cash Value life insurance products: The Capital Transfer and the Single Premium Pure Endowment.
The Single Premium Pure Endowment
The purpose of the Single Premium Pure Endowment life insurance product is to protect an individual from a nursing home spend-down, and immediately qualify him or her for Medicaid benefits.
The Single Premium Pure Endowment life insurance policy is irrevocable, non-assignable, carries zero cash and/or loan value, and is guaranteed issue to age 100. Three different maturity periods are available: three, five, and ten years. At maturity, the full pure endowment benefit will be paid to the insured. If the insured experiences an untimely death prior to the maturity date, a death benefit will be paid to the beneficiaries. The older the policy, the greater the death benefit will be. In no case will the death benefit be less than 90% of the initial premium. The beneficiary will always have the option to receive 100% of the initial premium, paid out over five years in equal annual payments in lieu of the death benefit.
The Capital Transfer
The Capital Transfer is a guaranteed issue single premium life insurance policy with a mandatory accelerated benefit terminal illness rider. The policy is designed for long-term care patients trying to qualify for Medicaid in order to protect assets. Additionally, the Capital Transfer is only available for issue in Arizona, California, and Florida.
The Capital Transfer is paid with a single premium. It includes an accelerated benefit terminal illness rider which is automatically exercised at inception with no waiting period. The rider pays 75% of the original death benefit in 75 equal monthly payments beginning 30 days after inception. At death, the beneficiary receives the 25% remaining death benefit in addition to continuing monthly rider payments. The beneficiary may take these payments in a continuing stream of income or as a lump sum commuted value.
The commercial insurance company that provides the Single Premium Pure Endowment and Capital Transfer life insurance policies maintains an A.M. Best key rating of B+ (Very Good), and is located in Lake Bluff, Illinois. The aforementioned products may not be available in every state. To find out more about the Single Premium Pure Endowment or the Capital Transfer please feel free to contact Krause Financial Services for a no-obligation, complimentary illustration.
