Life Ins W LTC

[LGilmore]

the big thing in a situation like this where the amount purchased will not meet the need is document document document. No?

In the state the OP is writing from the numbers show about 80k a year. So 36k is less than 50%.

As far as no point, well there is a point and it's to protect the agent. If all she wants is what x will buy, that's fine could you sign this? Also if she has children, maybe include one or two in as well. Many well intentioned agents have to defend themselves 10-15 years later when the claim is filed.

"you didn't show mom this!" "You told her this" I would just advise any agent in this type of situation to cover their backside as the Glen N case last year, earlier this year shows, you can get in all sorts of trouble if you can't show what you did.

and no worries. I just thought it was odd to be a bit defensive about the 3k when really all I was saying is document if you're in a situation like that.

 

[ltcadviser]

Just submitted a LTC app and about 12 pages simply dealt with the acknowledgement of the applicant that premiums could rise in the future. No questions at all, just a listing of all previous LTC plans they sold and the cost increases incurred and just the statement they had to sign off on that they UNDERSTAND that premiums can increase after 3 years. Why do you think that is there?

12 pages of rate increase disclosures? What application might that be? Transamerica? JH?

Mass Mutual has 1 sentence. "We have sold LTC since 2000 and have never increased rates on any policy in any state."

Have your clients sign off on that.
It is a much easier conversation.

 

[CALTCAgent]

I'd rather have $3,000 than $0.

Therefore I would think the person that sells $0 to someone as having more risk than someone that sells $3,000.

I do know we live in a litigious society though.

 

[pfg1]

That's pretty much how I was looking at it, CALTC.

I could help her out with a 10 pay life policy that would cover a portion of her potential ltc costs should they arise, but also have a death benefit to her heirs, if she never needed any ltc covg.

Is it wrong to look at it that way? If she says she doesn't want to spend the $ on a full blown ltc policy, because she feels like she'll never use it (and likely lose it) what do I tell her? If a stand alone ltc policy is $4k-6k/yr and premiums are due forever (and likely to go up)... which is better?

Her father passed at 90 and mother just passed at 92... so longevity runs in her family. Her mom did need a few months in ltc facility at the end, which is what brought this subject about. Obviously if I had a crystal ball, and could tell what is going to be needed it would be simple. Or if her funds were unlimited, but as it is... she has about $7k max (for 10yrs) that she could use to do "something".

What I was basically trying to find out with my post...

1. Is that product (MG2) any good?
2. Are there any other products that might fit her need better (for suedo ltc)?
3. Does anyone have a better suggestion, maybe something totally different.... for the money she has available?

Thanks for all the help so far...

 

[LGilmore]

Not trying to hassle you, but....

Does she need the life?

You know some LTC plans have premium refund, others offer nonforfeiture, some are tax qualified.


While I realize I may be a thorn on this deal... I would run your quotes for several options and offer to explain each one. Knock out the ones she clearly decides she doesn't want (her sign off on them) and work towards the one she likes.

The last thing you want is somebody coming in after you and asking her if she looked at abc, Present all the options, let her decide. I'm getting the feeling you've decided ahead of time, and that's never good.

Are you licensed to sell LTC? my state requires separate education and licensing.

 

[scagnt83]

What I was basically trying to find out with my post...

1. Is that product (MG2) any good?
2. Are there any other products that might fit her need better (for suedo ltc)?
3. Does anyone have a better suggestion, maybe something totally different.... for the money she has available?

Thanks for all the help so far...

Money Guard is a hybrid product and not a traditional Life Policy. Genworth has a comparable product to MG called TLC. Last I checked TLC offered a higher benefit vs. MG. So you should check it out.


But my problem with both of those options is that it puts the clients money to sleep. They offer very little RoR on the CV.


That is why I suggested the Mass 10 Pay Life Policy with their LTC Rider.
3% Cash Value growth, combined with an increasing LTC benefit.

JH & Trans also offer ltc Riders that would work in this situation. And the CV growth for them will be higher than MG.

 

[pfg1]

LGilmore, yes I am LTC licensed, though rarely sell much of it. And I understand where you are coming from. I have not decided for her, just basing my ideas on our initial conversation about ltc covg, and what she has to spend. She does have some life covg, so she doesn't "need" it, but could use more imo. (Has $150k)

scagent, are you contracted with Mass Mut? Could you run me a quote so I could see what it looks like? I agree, that the money goes to sleep per se with MG, but then again... its better than a cd

pm me if you are contracted with MM

 

[scagnt83]

I agree, that the money goes to sleep per se with MG, but then again... its better than a cd

What was the year 15 RoR on the CV on the MG quote you have?

And yes, I am contracted with MM and can get you an illustration. I will upload it to this thread if I can.

 

[ltcadviser]

Money Guard is a hybrid product and not a traditional Life Policy. Genworth has a comparable product to MG called TLC. Last I checked TLC offered a higher benefit vs. MG. So you should check it out.


But my problem with both of those options is that it puts the clients money to sleep. They offer very little RoR on the CV.


That is why I suggested the Mass 10 Pay Life Policy with their LTC Rider.
3% Cash Value growth, combined with an increasing LTC benefit.

JH & Trans also offer ltc Riders that would work in this situation. And the CV growth for them will be higher than MG.

Genworth TLC is a single pay only.

If client needs 10 pay, and WANTS long term care coverage, best hybrid options will be lincoln mg or state life asset care iv. Best traditional opion mass mutual signature care. Maybe new york life, but would have to check.

 

[scagnt83]

Genworth TLC is a single pay only.

That thought crossed my mind after posting but I wasnt 100% sure.