Ok, Why Not Life Insurance As An Alternative To Long-term Care In

[Brad W.]

OK, WHY NOT LIFE INSURANCE AS AN ALTERNATIVE TO LONG-TERM CARE INSURANCE?

Companies are coming out with riders that will pay a percentage of death benefit each month for Nursing home care, Assisted living care and home health care. I have thought for years that it would be a great fit.

It’s like this.

Mr. (age 65) & Mrs. (Age 64) Jones, Would you rather have a Long term care policy that will pay up to $150 per day with 5% compound inflation for a benefit period of up to 5 years if you need a type of extended care, like in a nursing home, assisted living or home health care. (Cost $4700+ per year in premium. I know this because I just wrote one.) Or would you rather have a policy that will pay for those types of needs if needed, yet if you never need long term care it will pay a death benefit of $500,000 to your family?

I will admit the life insurance way is a higher premium, like maybe twice as much in some cases. But the premium is locked in and won’t be going up.

I just want to hear your thoughts on this?

One last thing. How do some of you guys make a living selling insurance? When I see by the number of post by some of you I think, they can’t be working because they are always on the computer. No offence just curious.

 

[STIBROKER]

Re: Ok, Why Not Life Insurance As An Alternative To Long-term Car

One last thing. How do some of you guys make a living selling insurance?

 

[Arthur Rudnick]

Re: Ok, Why Not Life Insurance As An Alternative To Long-term Car

OK, WHY NOT LIFE INSURANCE AS AN ALTERNATIVE TO LONG-TERM CARE INSURANCE?

What is it that your clients are looking for; a life insurance policy to leave a death benefit to a beneficiary after their death or a long term care policy to protect assets while they're alive?

Two different concepts and 2 different insurance policies.

 

[jemelton]

Re: Ok, Why Not Life Insurance As An Alternative To Long-term Car

What is it that your clients are looking for; a life insurance policy to leave a death benefit to a beneficiary after their death or a long term care policy to protect assets while they're alive?

Two different concepts and 2 different insurance policies.

Wouldn't people want their heirs to get something when they pass away if they never need long term care as opposed to paying expensive premiums that they may never use?

I am a big fan of the life product with the LTC riders myself.

 

[billberry12]

Re: Ok, Why Not Life Insurance As An Alternative To Long-term Car

Just my opinion, but seems to me that a return of premium rider on traditional LTCI is more cost effective, unless there is a need for life insurance death benefit. And, the return of premium rider is not cost effective in most cases. I guess I'm saying neither is cost effective IMUO. I think it's hard to get one product to be two things.

 

[GreenSky]

Re: Ok, Why Not Life Insurance As An Alternative To Long-term Car

I see products like Moneyguard to be a compromise. For someone who says they won't pay the premium but will self-insure, this is a much better way to leverage their money.

Both concepts have their place but obviously is not an apples to apples comparison.

Rick

 

[briko3]

Re: Ok, Why Not Life Insurance As An Alternative To Long-term Car

I see products like Moneyguard to be a compromise. For someone who says they won't pay the premium but will self-insure, this is a much better way to leverage their money.

Both concepts have their place but obviously is not an apples to apples comparison.

Rick

And you can get a return of premium at any time AND it's easier to qualify for than traditional LTC.

 

[Brad W.]

Re: Ok, Why Not Life Insurance As An Alternative To Long-term Car

Now, that I have your attention.
Both are very viable resource for long term care. I have sold LTC insurance for over twenty five years now. In fact when I started they still called it Nursing Home Insurance. And in those days financial planners and layers all thought that it was a rip off if you bought LTC insurance. Not anymore.
Now the market has changed a lot from those days and will keep changing as time goes on. But what hasn’t changed is the need for money when someone needs long-term care. Money is what buys you the kind of care you need or want and there is only one of two ways of having that kind of money. Your own or an insurance companies. If those monies come from a life insurance or a long term care policy what difference does it make as long as you have money when you need it. There is a third place money can come from for this type of care. The state, but only after your own is all gone. And where does the state get their money? From all us. Well from at least half of us, because only half of us pay income any taxes.

 

[STIBROKER]

Re: Ok, Why Not Life Insurance As An Alternative To Long-term Car

One last thing. How do some of you guys make a living selling insurance? When I see by the number of post by some of you I think, they can’t be working because they are always on the computer. No offence just curious.

and we are always on the computer because we sell over the net and email and phone ........and most people hate insurance agent's in their house......and in today's teck world there is a moving trend.....and still have to read all ya'lls posts.........

 

[WinoBlues]

Re: Ok, Why Not Life Insurance As An Alternative To Long-term Car

Now, that I have your attention.
Both are very viable resource for long term care. I have sold LTC insurance for over twenty five years now. In fact when I started they still called it Nursing Home Insurance. And in those days financial planners and layers all thought that it was a rip off if you bought LTC insurance. Not anymore.
Now the market has changed a lot from those days and will keep changing as time goes on. But what hasn’t changed is the need for money when someone needs long-term care. Money is what buys you the kind of care you need or want and there is only one of two ways of having that kind of money. Your own or an insurance companies. If those monies come from a life insurance or a long term care policy what difference does it make as long as you have money when you need it. There is a third place money can come from for this type of care. The state, but only after your own is all gone. And where does the state get their money? From all us. Well from at least half of us, because only half of us pay income any taxes.

So what is you opinion on the hybrid policies. The only one that comes to mind is the WRL Assurance (i think).