Case Design: Term/UL Layer with a Pinch of LTC

SuperWoman

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Atlanta
Hello,

May I ask for some expertise guidance?

Female, age 60
5'1 / 115lb
Meds: 10 mg Bentyl for mild IBS (Non-smoker)
Knee replacement 2008
Select-Non-smoker

Seeking $300,000 life insurance & LTC (preferably $200/day for 2 or 3 years)

Background: She would prefer to have full GUL for $300k and Full LTC for the benefit amounts above BUT her budget can't afford it. So, I was looking at layering 25yr term $200k with 100k GUL WITH a gul that offers a chronic illness rider. I realize the benefit of such a rider is no substitution for a good LTC plan, so I am hoping you all can chime in on which gul might have a decent rider?

What is your opinion of such riders?

Thanks a lot.
 
Transamerica Trendsetter LB 25 has Chronic/Critical Illness and
Symetra GUL w/Chronic Plus rider is cheapest combo.
 
The chronic illness riders are pretty good, but not going to deliver a daily/monthly benefit, only an option to utilize some of the db should the client have a need and meet the criteria. It could be a decent amount, depending on the company/rider/illness.

In order to get some actual covg for LTC as you mentioned, you would need to step into a hybrid, or do separate policies Life & LTC.
 
You could do a permanent policy with an LTC rider. A 4% rider would give you that benefit on 150k policy for 25 months.
 
Thank you all for your feedback, and I apologize for not returning back to read your replies.

The client ending up choosing a Cincy $200k term - 25 yrs and a MoO LTC. IT fits her needs and her budget.
 
UPDATE: Case Design: Term/UL Layer with a Pinch of LTC

Well....she got declined for the LTC due to a one line note on her APS - "I forget stuff". :skeptical: She mentioned to her doctor last year she was forgetful, and that did her in.

So.....

I'd like to some feedback on another option:

She is also in UW with Cincy Life for $250,000 25 year term. Should be out of UW in a week or so. My experience with memory issues is that has not affected her life UW. I've have people declined for it on LTC, but issued Life.

She wants options for potential LTC Issues. I am thinking of WL, using the cash value as a tool to draw for down the road LTC, along with the ALB rider in the case of terminal illness.

She won't get approved for the chronic care rider due to memory, so it appears to be the only option.

She just lost her 30 yr old God-son to Melanoma within 2 months of diagnosis so she's feeling the "it can happen to me too" thing. This was her impetus to get covered.

What'cha all think?
 
Hello,

May I ask for some expertise guidance?

Female, age 60
5'1 / 115lb
Meds: 10 mg Bentyl for mild IBS (Non-smoker)
Knee replacement 2008
Select-Non-smoker

Seeking $300,000 life insurance & LTC (preferably $200/day for 2 or 3 years)

Background: She would prefer to have full GUL for $300k and Full LTC for the benefit amounts above BUT her budget can't afford it. So, I was looking at layering 25yr term $200k with 100k GUL WITH a gul that offers a chronic illness rider. I realize the benefit of such a rider is no substitution for a good LTC plan, so I am hoping you all can chime in on which gul might have a decent rider?

What is your opinion of such riders?

Thanks a lot.

I rpefer the riders for which there is a premium and pays a set amount at the time of a qualifying event. The "free" riders that pay based upon the events affect on your mortality rate can get an agent in trouble if the client does not fully understand it.
 
I found out my GA only offers Cin Life for WL (And Guardian and MM, but 'hardly anyone uses their WL').

Any suggestions on another WL product which may serve this case?
 
I would not use any form of UL for LTC, regardless of rider. To use UL, with a "guarantee" to age 90? Or any age limitation? Shouldn't the concern be about the possibility that the client could live beyond that age, and perhaps need the LTC at that (or later) point? Imagine a 90 year-old forgetting to pay a premium. Nah...how could that happen, right? The first purpose of using a good WL policy is to ensure that missed premiums don't result in a lapse, since there will be cash (CV) to cover, if needed. The second is that the CV, if necessary, as above, can certainly help for LTC if pure LTC is not approved.

The argument that the UL premium is more affordable is bogus if initial death benefit is not a top priority. In many (most?) cases, the equal premiums applied to either UL or WL will result in an initially lower DB for the WL, but over years, the WL will catch the UL, and pass by...all the while building CV, with guarantees.

The rosy illustrations for IUL, etc. use "arithmetic averages" with "straight-line projections", highly illusory since the actual performance of the policy's values will be tied to an inherently volatile instrument, in line (so-to-speak) with the volatile markets. And, if the cash growth is weak, the COI will eat the policy alive.

Mass is probably the best for the need above, if you can get approval. Why? First, strong CV growth. Second, non-direct recognition; you would provide better "longevity" to the use of the CV for LTC over time, if the need arises.
 
Thank you, Les for your input. I wouldn't even think about UL for this need. WL is what she needs to solve this problem. Or, at least partially.
 
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