AGLA (American General) Choice Performer UL W/ LTC Benefits?

[JosephDeacon]

I was meeting with a prospect last night and after we took care of her health plan she asked me to look at a life policy she purchased last year.

It was a $250K AGLA Choice Performer UL, option 80 with DB guaranteed to age 80. It guaranteed 5% interest in years 1-7. According to my prospect, the agent who sold this claimed that she could access the entire DB for LTC needs. I scanned the policy and there is a rider that states that she can access $, but how much $ was not specified.

The policy also stated that when claims are filed, there would be an "actuarial discount" and that the benefits would in all cases be less than the DB. So, I am trying to figure out how much she can access.

Surely the insurance co. is not going to take on two risks at $250K, one of which is guaranteed to happen and the other very likely.

Does anyone have any info about this life policy, thoughts, opinions, etc? She is a single woman who is concerned about LTC and I want to know more about what this will actually provide for her if she needs it 30 years down the road (or whenever).

Thanks to all.

 

[VolAgent]

I wouldn't get too deep into how much of the 250k she can actually use for LTC. You've already found where it shows that it will be less. She was promised all, that is good start right there.

Second, they are not going to pay the DB and the LTC benefit. Every dollar in LTC benefit is going to reduce the DB, the question is by how much.

There are other life/LTC combo policies out there, and most give some multiple of death benefit as LTC benefit. The first thing you need to do is establish if she wants to work with you on this, and if she will let you replace it if you find something suitable. If she isn't going to let you replace it should it make sense, move on.

 

[yankee466]

I was meeting with a prospect last night and after we took care of her health plan she asked me to look at a life policy she purchased last year.

It was a $250K AGLA Choice Performer UL, option 80 with DB guaranteed to age 80. It guaranteed 5% interest in years 1-7. According to my prospect, the agent who sold this claimed that she could access the entire DB for LTC needs. I scanned the policy and there is a rider that states that she can access $, but how much $ was not specified.

The policy also stated that when claims are filed, there would be an "actuarial discount" and that the benefits would in all cases be less than the DB. So, I am trying to figure out how much she can access.

Surely the insurance co. is not going to take on two risks at $250K, one of which is guaranteed to happen and the other very likely.

Does anyone have any info about this life policy, thoughts, opinions, etc? She is a single woman who is concerned about LTC and I want to know more about what this will actually provide for her if she needs it 30 years down the road (or whenever).

Thanks to all.

If its the same AGLA plan that I looked at a while back, all it is is a life policy with accelerated death benefit for LTC and/or critical illness...so they really only have one risk. It really has no LTC benefit to it, as you are simply getting (a small) part of your death benefit early every month if you have a LTC need. The LTC part is rather poor in comparison to what a real LTC policy will bring you. On the critical illness rider, which sounded good on the surface, no one could ever tell you what you would actually get.....as if it was totally discretionary to the company. I walked away from the product and decided to stick with best of breed products as a better value for my client.

The local FMO tried to show me how wonderful the LTC part was, and I blew him away by showing how regular LTC worked, with way more bang for the buck. He was clueless when it came to LTC in general.....as he was simply a life insurance salesmen who thought he had something unique to sell.

If you client is concerned about LTC needs, why sell her a life policy? She can get a much better value on a more traditional NLGUL and a separate LTC policy IMHO.

If you absolutely want to sell a hybrid plan, suggest you look at something like Money Guard instead.

 

[JosephDeacon]

VolAgent/Yankee,

This pretty much sums up what I could gather from reading the policy. I am just trying to make sure that this lady understands what she owns. She thinks she has 250K life and 250K LTC; she does know that any LTC benefits would reduce the DB, but from your posts, it sounds like the LTC benefit is minimal.

She is willing to let me look at other options. She dropped 40K into an annuity with a 12 year surrender several years ago; I wish that I had known her then. This might have been a good Moneyguard or similar SPUL w/ LTC contract case.

I may see if I can replace the AGLA with a more cost effective UL product, or write a slightly smaller face and use the difference to fund a traditional LTC contract with Mass Mutual. Not sure how I feel about Hancock or Genworth these days and Met is out of the business.

Thank you again for the advice.

 

[VolAgent]

VolAgent/Yankee,
She is willing to let me look at other options.

That isn't the same as agreeing to let you replace it. I'm not saying to be a hard closer, but I'd want some very positive language from her saying that you can implement a new plan if it is better. Otherwise you're going to spend a lot of time for her to tell you, "Let me think about it." And then start blowing you off.

 

[JosephDeacon]

You make a good point. Before doing anything else, I will see if she is willing to make that statement.

 

[Norwayguy]

You make a good point. Before doing anything else, I will see if she is willing to make that statement.

Can you do an AOR of the policy?

 

[JosephDeacon]

I think that will be the next step; the writing agent moved away and is not servicing the policy. AOR, then possibly replace.

Jonh Hancock has a nice life/LTC plan that has a defined benefit, which to me sounds a lot better than this AGLA plan. Premium is $20 less/month as well.