American General Life Insurance Company has launched a new long term care insurance product, which features a built-in cash benefit to help cover expenses such as care from a family member.

According to American General, the American General LTC features a Shared Care Benefit Rider, which can be used by either spouse after their own benefits have been exhausted; graded premium options to make 3% or 5% compound inflation protection; and benefit amounts of $100,000 to $1m rather than benefit time periods.

In order to apply for long term care insurance, the company developed a process called LTC LaunchPad that automatically populates the application forms based on the illustration and a brief questionnaire, and shortens the agent’s requirements for field underwriting. Initial and ongoing premium payments for the new product may be remitted via credit card as well as direct bill or automatic bank draft.

In addition, the product also offers a monthly benefit, rather than daily benefit; a calendar-day elimination period, rather than a service-day elimination period; a stay at home support benefit (10% of maximum lifetime benefit for home modification, durable medical equipment, respite care, hospice care and caregiver training, payable during the elimination period);

David O’Leary, executive vice president and COO of American General, said: “We are committed to being a solutions-based organization that supports the needs of our existing and potential customers. American General LTC has been designed as a common-sense, flexible answer to financial planning needs.”