Press release
RiverSource Life Introduces Chronic Care Expense Solution
As Congress debates health care reform, individual need for chronic care protection becomes more apparent
MINNEAPOLIS – August 5, 2009 – The current debate over health care reform highlights the rising costs of nursing home care and the need for long term care protection within a financial plan.
To address the problem, RiverSource Life Insurance Company has introduced the AdvanceSourceSM accelerated benefit. This optional rider is available for additional cost on new, RiverSource Life permanent single-life insurance policies to help clients with a life insurance need manage the cost of chronic care services.
According to a 2008 report from the U.S. Department of Health and Human Services:
- The average annual cost of a nursing home stay in 2007 was $76,285 for a private room and $68,255 for a semi-private room.
- The average stay in a nursing home in the U.S. was 904 days.
- Total average costs: $190,000 for a private room. $170,000 for a semi-private room.
The AdvanceSource accelerated benefit allows new RiverSource Life policyholders to accelerate a portion of their life insurance death benefit and use it to cover chronic care needs during their lifetime. In this case, the ultimate death benefit is reduced by any benefits used to cover qualified long-term care expenses during the policyholder's life. If no chronic care coverage is needed, the entire life insurance death benefit remains fully intact for beneficiaries.
“The AdvanceSource accelerated benefit is a comprehensive solution that gives clients flexibility and control to address life insurance and chronic care needs,” said John Woerner, President, Insurance and Chief Strategy Officer of Ameriprise Financial. “For those with both a life insurance need and the desire for chronic care expense coverage, adding the AdvanceSource accelerated benefit to a life insurance policy can provide the convenience of one policy with potentially significant cost savings.”
The AdvanceSource accelerated benefit is an optional rider that can be added, for an additional cost, to any of the following life insurance policies at time of purchase:
- RiverSource® Variable Universal Life
- RiverSource Foundations® universal life
- RiverSource Foundations Protector® universal life
The cost of the rider is based on gender, age, rider specified amount, time since issue, percentage selected for monthly benefit amount, and risk class.
Permanent life insurance provides important survivorship protection and an opportunity to build cash value. You may incur optional rider expenses, surrender charges and policy charges, and with variable universal life may incur mortality and expense fees and subaccount expenses.
For more information, visit riversource.com/insurance.
About RiverSource Insurance
Insurance and annuity products are issued by RiverSource Life Insurance Company and in New
York, by RiverSource Life Insurance Co. of New York, Albany, New York. These companies
are affiliated with Ameriprise Financial Services, Inc. Only RiverSource Life Insurance
Co. of New York is authorized to sell insurance and annuities in New York.
About Ameriprise Financial
Ameriprise Financial, Inc., is a diversified financial services company serving the comprehensive
financial planning needs of the mass affluent and affluent.
For more information, visit ameriprise.com.
RiverSource Insurance products are sold through the personal advisors of Ameriprise Financial (NYSE:AMP).
This is not an offer for insurance; proof of insurability must be made before coverage will be issued.
You should consider the investment objectives, risks, charges and expenses of the variable life insurance and its underlying investment options carefully before investing. For a free copy of the life insurance prospectus and underlying investment's prospectus, which contains this and other information about variable life insurance, call 1(800-333-3437). Read the prospectus carefully before you invest.
All products and riders are not available in all states, including New York.
Applies to the following rider and policy form number series: AdvanceSource rider, 132172; Foundations Protector universal life insurance, 133078, 133078 A with endorsement 132164; Foundations universal life insurance, 30080 C with endorsement 133080; Variable Universal Life IV, 30061.
Before you purchase, be sure to ask your financial advisor about the life insurance policy's features, benefits, risks and fees, and whether the life insurance is appropriate for you, based upon your financial situation and objectives. Variable life insurance is a complex investment vehicle that is subject to market risk, including the potential loss of principal invested.
The AdvanceSource rider accelerates the death benefit for qualified long-term care services. This rider is not considered long-term care insurance in some states, does not qualify for state long-term care partnership programs and is not a Medicare supplement policy. Receipt of accelerated death benefits may affect eligibility for public assistance programs.
The AdvanceSource rider benefit is intended to qualify for exclusion from income within the limits of the Internal Revenue Code in effect at the issuance of the rider. Benefits received in excess of those limits may be taxable (e.g., insured receives benefits from multiple sources, such as an individual long-term care policy and the AdvanceSource rider). The client should consult a tax advisor regarding the taxation of any benefits received. Charges for the rider may be considered distributions for income tax purposes, and may be taxable.
RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co. of New York, Albany, New York. These companies are affiliated with Ameriprise Financial Services, Inc. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuities in New York.
© 2009 RiverSource Life Insurance Company. All rights reserved.
