A smart new way to plan for long-term care expensesNew hybrid indexed universal life product combines life insurance with long-term care benefits
February 13, 2019 – Charlotte, NC – Brighthouse Financial, Inc. (“Brighthouse Financial”) (Nasdaq: BHF)
today announced the launch of Brighthouse SmartCareSM, an all-new hybrid life insurance solution that combines the growth opportunities and death benefit of an indexed universal life (IUL) policy with protection against the costs of long-term care (LTC). The combination ensures that even if customers don’t use the LTC benefit, they get value through the guaranteed death benefit. Brighthouse SmartCare distinguishes itself from other hybrid products by offering policyholders the ability to grow cash value, death benefits and LTC coverage through the performance of major market indices.
Brighthouse SmartCare arrives at the intersection of two key retirement trends: rising costs of long-term care and increasing life expectancies. It is estimated that 1 in 2 Americans turning 65 today will require some form of long-term care, with average lifetime long-term care expenses of $266,000.1 Yet, many retirement-age adults have a hard time envisioning and planning for the possibility of needing long-term care.
Multiple Layers Of Protection
“We designed Brighthouse SmartCare to address an increasingly important question in retirement today: What happens to my financial future if I suddenly require long-term care?” said Eric Steigerwalt, president and CEO, Brighthouse Financial. “We’ve responded with a flexible IUL product that provides multiple layers of protection for customers as they build for what’s ahead.”
Following several product introductions in its expanding annuity category, Brighthouse SmartCare marks the first life insurance product launch by Brighthouse Financial since becoming an independent entity in 2017. The move represents early steps in the company’s strategy to re-establish a competitive foothold in the life insurance market.
“Brighthouse SmartCare builds on our foundation of experience and knowledge in the life insurance space,” continued Steigerwalt. “We are excited to enter the growing hybrid market as we focus on rebuilding our presence in the retail life insurance market and diversifying our product portfolio.”
Brighthouse SmartCare is currently approved for sale in 46 states and the District of Columbia and will be available through select distribution partners.
More information on Brighthouse SmartCare is available at brighthousefinancial.com.
About Brighthouse Financial
Brighthouse Financial (Nasdaq: BHF) is on a mission to help people achieve financial security. As one of
the largest providers of annuities and life insurance in the U.S., we specialize in products designed to help
people protect what they’ve earned and ensure it lasts. Learn more at brighthousefinancial.com.
1 Melissa Favreault and Judith Dey, Long-Term Services and Supports for Older Americans: Risks and Financing, U.S. Department of Health & Human Services, February 2016. p. 3-6
Not available in all states.
Long-term care (LTC) benefits provided, at an additional charge, by riders to the policy are intended to provide qualified long-term care insurance under Internal Revenue Code Section 7702B(b). Although benefits paid under a rider are intended to be income tax free as accident and health benefits under a qualified long-term care insurance contract, benefits may be taxable in certain circumstances. For example, benefits may be taxable when the aggregate LTC benefit payments received under a rider and other policies or riders exceed the Internal Revenue Code section 7702B(d)(2) per diem limitation. Policy owners should consult with an attorney or qualified tax advisor before purchasing Brighthouse SmartCareSM and when exercising any right to receive LTC benefits under any rider included with the policy. The policy’s death benefit and policy values will be reduced as a result of any LTC ADBR payment.