LTC Annuity

[CALTCAgent]

I have never seen an LTC annuity "crush" a standalone LTC. If its the case, please post the details of the LTC annuity and we can compare.

Nothing against the LTC annuity if thats what somebody wants.

 

[ltcadviser]

I have never seen an LTC annuity "crush" a standalone LTC. If its the case, please post the details of the LTC annuity and we can compare.

Nothing against the LTC annuity if thats what somebody wants.

I am a little too busy now to show you the math, but let's just say many clients would rather reposition 125000 in a low interest environment and get LTC benefits of 5000 month, 10 year benefit period, 5 percent compound inflation than buyIng the same standalone LTC policy and spend $6000 year on a non guaranteed premium that may and will be increased. The client is going to probably fork over 100000 in LTC premiums over 13 years , and sweat rate increases. If you can leverage 100k into 1 million +++ and not have to spend 100k +++ in premiums why would you not consider it? When using inflation protection. The annuity can turn into a 10x, 12x, 15x multiple.

I write traditional LTC most often, but I definitely see the value in some of the annuity combo products. Each case is unique. You just have to explore all the options for YOUR clients.

 

[CALTCAgent]

I am a little too busy now to show you the math, but let's just say many clients would rather reposition 125000 in a low interest environment and get LTC benefits of 5000 month, 10 year benefit period, 5 percent compound inflation than buyIng the same standalone LTC policy and spend $6000 year on a non guaranteed premium that may and will be increased. The client is going to probably fork over 100000 in LTC premiums over 13 years , and sweat rate increases. If you can leverage 100k into 1 million +++ and not have to spend 100k +++ in premiums why would you not consider it? When using inflation protection. The annuity can turn into a 10x, 12x, 15x multiple.

I write traditional LTC most often, but I definitely see the value in some of the annuity combo products. Each case is unique. You just have to explore all the options for YOUR clients.

Do you have the quote you can post here? That would be easier and more exact.

Don't you have to use your own money first as well in the annuity versus LTC which pays in typically 30 to 90 days?

Is the premium guaranteed to not go up on the annuity?

 

[ltcadviser]

Do you have the quote you can post here? That would be easier and more exact.

Don't you have to use your own money first as well in the annuity versus LTC which pays in typically 30 to 90 days?

Is the premium guaranteed to not go up on the annuity?

There is no ongoing premium in the annuity. Single premium upfront. Benefits are fixed and guaranteed. Keep in mind that if an individual is paying 6000 year in premium they are spending 6 figures on care they might never need. If they reposition 100k they may be using their 100k first but they would have lost the money anyway in premiums. If they die and never need care they haven't lost so much. Rate increases, and low interest rate environments are the great equalizer here.

 

[CALTCAgent]

Benefits are fixed and guaranteed.

If there is a premium for LTC, I believe it can go up.

Keep in mind that if an individual is paying 6000 year in premium they are spending 6 figures on care they might never need. If they reposition 100k they may be using their 100k first but they would have lost the money anyway in premiums.

With the LTC annuity, there is a premium for the LTC benefit still. Its lost as well as the gain lost that they would have received in another annuity that potentially paid more interest. So they lose twice.

If they die and never need care they haven't lost so much. Rate increases, and low interest rate environments are the great equalizer here.

They actually lose more in the LTC annuity versus standalone LTC and a standalone annuity.

Disclaimer:

I'd like to see the annuity you are talking about, it may be different than what I am familiar with in CA.

 

[ltcadviser]

I am sure it is different than what you have seen. I am a fan of some of them and not a fan of others. It is important to know which ones are good and in what situations.

 

[CALTCAgent]

I am sure it is different than what you have seen. I am a fan of some of them and not a fan of others. It is important to know which ones are good and in what situations.

They are not all created equal.

 

[yankee466]

I think the original question remains unanswered......what annuity companies still offer a fixed annuity with a LTC rider where the benefits paid out are X2+ that is worth looking at? I do not mean income doublers on an income rider product.

Its hard enough to get more than 2-3% guarantees on an annuity these days anyway....so by the time you additionally promise the moon on a LTC add on, it makes you understand why GNW and MoO got out.

I would like to see that illustration too.

 

[ltcadviser]

I think the original question remains unanswered......what annuity companies still offer a fixed annuity with a LTC rider where the benefits paid out are X2+ that is worth looking at? I do not mean income doublers on an income rider product.

Its hard enough to get more than 2-3% guarantees on an annuity these days anyway....so by the time you additionally promise the moon on a LTC add on, it makes you understand why GNW and MoO got out.

I would like to see that illustration too.

Whatever. If you want to see the illustrations then open up your software. I am too busy running illustrations for my clients than to have to run illustrations for people that tell their clients they are long term care specialists.

 

[Arthur Rudnick]

originally posted by ltcadviser

I am too busy running illustrations for my clients than to have to run illustrations for people that tell their clients they are long term care specialists

Interesting comment considering you go by "ltcadviser".