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Old 04-11-2017, 08:34 PM   #1
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Clients Starting to Ask About LTC Clients Starting to Ask About LTC
Hello.

I have been on these forums for a few years, but over in the employee benefits and life insurance side. I inherited some life insurance clients from my dad when I took over the company and now many of them are expressing some interest in LTC. I have looked at it over the years, but found it to be super volatile and quite restrictive.

Last time I got quotes, it was for MedAmerica and now they are gone. Curious of what companies you might suggest that are still offering a decent product?

It just seems like a hard product to justify if they have premiums for life, no death benefit and then IF they go on claim a few thousand dollars a month for a few years. How are you guys selling this? I may just put my own thoughts in the way, which is a problem I have.

I'd really like to be able to help people who genuinely would feel better about having some protection even if it isn't the best "investment" per se.

I have read through a lot of the comments here but would like to explore this situation a little bit with you if you are willing.

Thanks!
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Old 04-11-2017, 09:26 PM   #2
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Clients Starting to Ask About LTC Re: Clients Starting to Ask About LTC
Originally Posted by NWBenefitProvider View Post
Hello.

I have been on these forums for a few years, but over in the employee benefits and life insurance side. I inherited some life insurance clients from my dad when I took over the company and now many of them are expressing some interest in LTC. I have looked at it over the years, but found it to be super volatile and quite restrictive.

Last time I got quotes, it was for MedAmerica and now they are gone. Curious of what companies you might suggest that are still offering a decent product?

It just seems like a hard product to justify if they have premiums for life, no death benefit and then IF they go on claim a few thousand dollars a month for a few years. How are you guys selling this? I may just put my own thoughts in the way, which is a problem I have.

I'd really like to be able to help people who genuinely would feel better about having some protection even if it isn't the best "investment" per se.

I have read through a lot of the comments here but would like to explore this situation a little bit with you if you are willing.

Thanks!

can you give an example of an insurance product that is a great investment?
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Old 04-11-2017, 09:39 PM   #3
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ltcadviser on Clients Starting to Ask About LTC
 
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Clients Starting to Ask About LTC Re: Clients Starting to Ask About LTC
Originally Posted by NWBenefitProvider View Post
Hello.

I have been on these forums for a few years, but over in the employee benefits and life insurance side. I inherited some life insurance clients from my dad when I took over the company and now many of them are expressing some interest in LTC. I have looked at it over the years, but found it to be super volatile and quite restrictive.

Last time I got quotes, it was for MedAmerica and now they are gone. Curious of what companies you might suggest that are still offering a decent product?

It just seems like a hard product to justify if they have premiums for life, no death benefit and then IF they go on claim a few thousand dollars a month for a few years. How are you guys selling this? I may just put my own thoughts in the way, which is a problem I have.

I'd really like to be able to help people who genuinely would feel better about having some protection even if it isn't the best "investment" per se.

I have read through a lot of the comments here but would like to explore this situation a little bit with you if you are willing.

Thanks!
Policies are commodities. The important part of the process is the conversations and the planning.

But since you asked:

Decent policies, at least from pricing/benefit ratio
Traditional
Mutual of Omaha
Mass Mutual
National Guardian Life
Transamerica
Genworth
Federal Employees
LifeSecure group
Auto Owners

Hybrid
OneAmerica/State Life
Lincoln
Pacific Life (for male applicants)


Well, that's a start...
Stay out of your own way. You just might help people.

Years ago I received very good advice.
If you own a policy it becomes very easy to write business. If you do not believe in owning coverage for yourself, it is difficult to write business.

I am guessing you have not purchased LTC insurance?

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Old 04-11-2017, 10:07 PM   #4
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Clients Starting to Ask About LTC Re: Clients Starting to Ask About LTC NWBenefitProvider is the thread starter for: Clients Starting to Ask About LTC

Originally Posted by ltcadviser View Post
Policies are commodities. The important part of the process is the conversations and the planning.

But since you asked:

Decent policies, at least from pricing/benefit ratio
Traditional
Mutual of Omaha
Mass Mutual
National Guardian Life
Transamerica
Genworth
Federal Employees
LifeSecure group
Auto Owners

Hybrid
OneAmerica/State Life
Lincoln
Pacific Life (for male applicants)


Well, that's a start...
Stay out of your own way. You just might help people.

Years ago I received very good advice.
If you own a policy it becomes very easy to write business. If you do not believe in owning coverage for yourself, it is difficult to write business.

I am guessing you have not purchased LTC insurance?
Thank you for the thorough list. Correct, I do not own coverage myself. My reasoning may open a whole additional conversation...I chose to buy a pretty decent size whole life policy through Guardian a few years ago. My decision was based on spreading my risk. I figure that IF I needed LTC I could borrow from the cash value. That way if I don't need it, the policy keeps chugging along and is available to my family when I die. Maybe not the best idea, but one I am comfortable with.

I also have several rental properties that are earmarked for cash flow later in life. I know one could argue that it isn't the same, but I could either use the cash flow or sell a property and end up with a nice sized "bucket" of money to use for LTC without restriction.

Don't get me wrong, I think it is probably an amazing product for the right person, just not me at this time and based on my VERY analytical thinking. However, I really do want to help people who it may be right for and part of that is getting better educated by people who have and continue to sell it. I'd like to become better versed into how to have a great conversation about it without getting in my own way like you mentioned.

Again, thank you for your contribution, it gives me some carriers to research.

----------

Originally Posted by Mr_Ed View Post
can you give an example of an insurance product that is a great investment?
A lot of people are out there pitching insurance as investment vehicles, or people I have met are weighing the cost of coverage like LTC versus investing the money. So, at the end of the day right or wrong, people tend to view it as an investment. At least in my experience.

I think of much of my insurance as an investment in spreading risk. My disability coverage is an investment to protect my loss of earnings. My umbrella policy is an investment against lawsuits coming after assets. My life insurance is an investment in protecting my family in case something were to kill me off early.

I do not see this type of investment in the same light as investing in stocks, real estate, etc., but I do view it as an investment in protecting my assets and future.
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Old 04-11-2017, 10:11 PM   #5
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ltcadviser on Clients Starting to Ask About LTC
 
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Clients Starting to Ask About LTC Re: Clients Starting to Ask About LTC
Originally Posted by NWBenefitProvider View Post
Thank you for the thorough list. Correct, I do not own coverage myself. My reasoning may open a whole additional conversation...I chose to buy a pretty decent size whole life policy through Guardian a few years ago. My decision was based on spreading my risk. I figure that IF I needed LTC I could borrow from the cash value. That way if I don't need it, the policy keeps chugging along and is available to my family when I die. Maybe not the best idea, but one I am comfortable with.

I also have several rental properties that are earmarked for cash flow later in life. I know one could argue that it isn't the same, but I could either use the cash flow or sell a property and end up with a nice sized "bucket" of money to use for LTC without restriction.

Don't get me wrong, I think it is probably an amazing product for the right person, just not me at this time and based on my VERY analytical thinking. However, I really do want to help people who it may be right for and part of that is getting better educated by people who have and continue to sell it. I'd like to become better versed into how to have a great conversation about it without getting in my own way like you mentioned.

Again, thank you for your contribution, it gives me some carriers to research.
People buy policies for various reasons, many of which often have zero relation to dollars, cents, and analytics. I think the majority of my clients will state they buy policies because they do not want to burden family. Often these clients have nest eggs of 3-5 million. They do not necessarily need the insurance. They want the insurance. So, try not to bring your biases to the conversation. Simply discuss with your clients what their concerns are and what their objectives are, and help them to implement the plan they want. There is no need for selling anything to anyone. Simply having the conversation will allow you to deliver to your clients the policies that your clients want to buy.

Good luck.
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Old 04-11-2017, 10:17 PM   #6
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Clients Starting to Ask About LTC Re: Clients Starting to Ask About LTC NWBenefitProvider is the thread starter for: Clients Starting to Ask About LTC

Originally Posted by ltcadviser View Post
People buy policies for various reasons, many of which often have zero relation to dollars, cents, and analytics. I think the majority of my clients will state they buy policies because they do not want to burden family. Often these clients have nest eggs of 3-5 million. They do not necessarily need the insurance. They want the insurance. So, try not to bring your biases to the conversation. Simply discuss with your clients what their concerns are and what their objectives are, and help them to implement the plan they want. There is no need for selling anything to anyone. Simply having the conversation will allow you to deliver to your clients the policies that your clients want to buy.

Good luck.
Thank you, there is a lot of truth in that.
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Old 04-11-2017, 11:31 PM   #7
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CALTCAgent on Clients Starting to Ask About LTC
 
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Clients Starting to Ask About LTC Re: Clients Starting to Ask About LTC
Originally Posted by NWBenefitProvider View Post
I took over the company and now many of them are expressing some interest in LTC.
I would focus on these people.



Originally Posted by NWBenefitProvider View Post
IF they go on claim a few thousand dollars a month for a few years. How are you guys selling this? I may just put my own thoughts in the way, which is a problem I have.
What age are they ?
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Old 04-12-2017, 10:34 AM   #8
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Clients Starting to Ask About LTC Re: Clients Starting to Ask About LTC
Originally Posted by NWBenefitProvider View Post

Don't get me wrong, I think it is probably an amazing product for the right person, just not me at this time and based on my VERY analytical thinking.

I work with a lot of analytical people. I'm also very analytical so I seem to attract that kind of a consumer. I would love for you to share your "very analytical thinking" that has lead you to the conclusion that LTCi is not for you at this time.

Would you mind sharing that? It may help other members of the forum to go through that kind of analysis.

Why don't you start with telling us more about the whole life policy you purchased to pay for your long term care. How much is the death benefit? How much cash value does it have now? How much cash value will it have when you turn 60? how much when you turn 70 and 80? Does it have an accelerated death benefit for long-term care or chronic illness? Or are you just planning on borrowing from the cash value?


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Last edited by Mr_Ed; 04-12-2017 at 01:52 PM.
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Old 04-12-2017, 11:56 AM   #9
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mplsmm on Clients Starting to Ask About LTC
 
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Clients Starting to Ask About LTC Re: Clients Starting to Ask About LTC
Off topic but what do you guys think of a product like Mass Mutual with the Enhanced Care Benefit as an option? I don't have any true LTC to offer but I do have this.
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Old 04-12-2017, 12:23 PM   #10
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Clients Starting to Ask About LTC Re: Clients Starting to Ask About LTC
Originally Posted by mplsmm View Post
Off topic but what do you guys think of a product like Mass Mutual with the Enhanced Care Benefit as an option? I don't have any true LTC to offer but I do have this.
chronic illness riders are the worst.
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