LTC and LI

[agentjhc]

I ran across a possible client whose financial advisor (she mentioned not trusting him) recommended WL for use as LTC. I do not know all the details, but what are you all's thoughts on the new LTC riders on WL ?

 

[DHK]

The problem with Chronic Illness riders, is that they can be taxable as income. Of course, one should be offsetting such liability with the medical expenses incurred.

Take this company's Chronic Illness rider explanation:
Independent Marketing Group of American National

Receipt of Accelerated Benefits may affect your eligibility for Medicaid, supplemental security income, or other government benefits or entitlements. Please consult your own advisor to determine the impact on your eligibility before applying for accelerated benefits. Receipt of an Accelerated Benefit may be a taxable event. You should consult a tax advisor regarding the tax status of any benefit paid to you under this Rider. Neither American National Insurance Company nor its representatives give legal or tax advice. Agents can only discuss general benefits of conversion and must refer clients to their tax advisor or attorney for tax or legal advice.

In essence: Chronic Illness Rider = may be subject to income taxation (but should be offset by the medical expenses incurred).

A true stand-alone LTC policy = tax free benefits.


What we didn't talk about were the costs to acquire the protection in the first place. From my understanding, LTC policy premiums are only going up, and benefits are decreasing. From a cost-effective perspective, it may be a LOT cheaper to get a life insurance policy with a Chronic Illness Rider on it... with the guarantee that if you need it for a Chronic Illness, it's there. When you pass away, if the policy is still in force, it's there then too.

 

[TwiLight]

You may want to check out our link for the GUL policy at Transamerica. The TransACE w/LTC rider is very powerful and is approved in 48 States.

www.transamerica.com/transaceltc/

Let me know if you want to know more.

 

[agentjhc]

Twilight that was what I was thinking....might be what my wife and I need as well.

 

[Justin Bilyj]

Mass has the ltc access rider on their whole life which receives dividends, something Trans doesnt do.

 

[Nikita]

You may want to check out our link for the GUL policy at Transamerica. The TransACE w/LTC rider is very powerful and is approved in 48 States.

www.transamerica.com/transaceltc/

Let me know if you want to know more.

Anyone ever sold the OneAmerica LTC/Life hybrid? Between the TransACE and the OneAmerica, which one do you prefer and why?

 

[ltcadviser]

Anyone ever sold the OneAmerica LTC/Life hybrid? Between the TransACE and the OneAmerica, which one do you prefer and why?

For LTC benefits, OneAmerica/State Life Asset Care by far. Unlimited benefits and 5% compound inflation protection. No brainer.

 

[Tahoe Ray]

For LTC benefits, OneAmerica/State Life Asset Care by far. Unlimited benefits and 5% compound inflation protection. No brainer.

Absolutely...but to the OP, why buy the WL (or any life with an LTC rider) in the first place if the primary need is LTC?

Offer them a true LTC policy.

 

[agentjhc]

That's what I meant, which is better? GUL/WL w LTC rider, or just LTC. Her FA was suggesting WL w LTC

 

[ltcadviser]

That's what I meant, which is better? GUL/WL w LTC rider, or just LTC. Her FA was suggesting WL w LTC

As Ray mentioned, LTC policy is more efficient than a hybrid life/LTC policy. If applicant is female and applying alone you will wish to focus on companies that do not have gender based pricing-Mass Mutual, NY Life, MedAmerica-and Genworth cos they are still cheap.