Prudential Financial Launches a New Individual Long-Term Care Insurance Policy

businesswire, Mar 29, 2005

Prudential Financial, Inc. announced today the availability of its new Individual Long-Term Care Insurance Product, LTC3(SM) issued by The Prudential Insurance Company of America in 23 states*. LTC3(SM) is the next generation of Prudential's popular individual long-term care insurance product, offering a number of new benefits and riders that provide consumers with a wide range of choices to design a policy to help meet their long-term care needs.

"Americans are expected to live longer in retirement, sometimes up to 25 or 30 years. This trend coupled with the ever-rising cost of health care and nursing home care can become a significant factor in planning for a financially secure retirement," said Andy Mako, senior vice president of Prudential's Long-Term Care insurance business.

LTC3(SM) offers consumers an innovative, individual long-term care insurance policy that will help them to protect their assets, their choice of care and their independence should the need for long-term care arise. All LTC3(SM) policies include international coverage, a simple calendar day elimination period (deductible), restoration of benefits should the policyholder recover and an alternate plan of care to help keep the policy current with new and emerging modes of care.

Every LTC3(SM) policy also has a new Cash Alternative feature that allows policyholders to elect a monthly cash payment in lieu of reimbursement for services. The Cash Benefit rider is also available with the LTC3(SM) product and provides flexibility since proof of actual services is not required for benefits to be paid. The new Flexible Cash Benefit rider provides a less expensive alternative to the Cash Benefit rider by allowing a portion of your total benefit to be payable without proof of actual services.

"We made these changes to our product with the consumer in mind," adds Mako. "People seeking long-term care insurance are often most concerned with staying in their own home for as long as possible and they want the freedom to choose the type of care they'd prefer." To that end, Prudential added a 150% Home Care Daily Benefit option.

Recognizing changing demographic trends, the LTC3(SM) policy now also offers a Shared Care rider that allows a spouse or partner to access the benefits of the other spouse/partner once their own benefits are exhausted. "Increasingly we see LTC insurance being purchased by married couples or partners as part of their family financial planning," Mako said. "We have created the Shared Care rider to allow couples greater flexibility in their planning for long-term care. We've also increased our married/partner discounts to 30% for each policy when both members purchase a policy."

The new LTC3(SM) product will replace the current LTC By Design(SM) product in the states launched.

Prudential Financial companies, with approximately $500 billion in total assets under management as of December 31, 2004, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the United States. These companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services.

*Alabama, Colorado, Idaho, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Utah, Virgin Islands, Washington D.C., Wyoming

LTC3(SM) long term care insurance is issued by The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ 07102 (800 732-0416). This coverage contains benefits, exclusions, limitations, eligibility requirements and specific terms and provisions under which the insurance coverage may be continued in force or discontinued. Availability of product and features varies by state. Coverage is issued under policy number GRP 113096. (In North Carolina coverage is issued under GRP 113290), however policy numbers may vary by state. The Prudential Insurance Company of America is solely responsible for its financial condition and contractual obligations