Lincoln Money Guard
- Thread starter split789
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It is a decent LTC policy (first day home care, month benefits,alternate plan of care, inflation options). It is hard to compare apples to apples, because typically I find it is 2 different clients. MoneyGuard appeals to clients who say they will self insure. Well move that money & get better leverage. Traditional LTC is more, I couldn't self insure, but I have too much for government aid so let me pay a premium to make sure I don't have to.
There are a number of these products on the market. Genworth, Pac Life, State life, etc....not to mention the annuity versions.
Asset based LTC products can be very compelling...the challenge is finding the clients/prospects with enough assets to make it work.
If you have a need for both LTC and a death benefit, I still prefer stand alone policies to hybrids (since you only get to fully use one feature in the hybrid, not both) but for those with an LTC protection need who have assets that are not productive, it can be a great fit. It also is psychologically easier for some clients to wrap their heads around since there is a payoff no matter what (they want their money back, need LTC, they die).
ROP features, locking in costs/benefits, a modest death benefit and the ability to get some protection out of cash that may otherwise not be used make these products attractive.
The biggest problem that I have with these products is that the benefits are often "long and skinny" and the inflation features are less than helpful. Still, something is better than nothing and the leverage provided beats keeping it at the bank.
- Thread starter
- #4
thx Ray
Could you explain how the annuity versions work and why someone may go that route instead something like the moneyguard or a stand alone ltc or whole life with ltc rider
thx
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do you prefer it over the Genworth TLC?
thx
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The annuities come in two flavors: products that look like Moneyguard and provide leverage based on the initial deposit and the others that have an income rider that provides extra income if an LTC need arises.
The first version is easier to qualify for vs. MG or TLC but doesn't provide as much leverage. The second is really more icing and in my opinion, not worth the purchase strictly for the LTC enhanced benefit (now for a lifetime income need WITH that benefit, it's a nice option).
The first version is easier to qualify for vs. MG or TLC but doesn't provide as much leverage. The second is really more icing and in my opinion, not worth the purchase strictly for the LTC enhanced benefit (now for a lifetime income need WITH that benefit, it's a nice option).
If someone also needs an over priced life insurance product, MG is a good deal. GNW TLC will generally get you more coverage for the money, but TLC is also an over priced life insurance policy.
Every client situation is different. What most people don't think about on these plans is that if they are paying LTC benefits, they first use up the death benefit before they start using insurance company money. So, it is easy to wind up with essentially no death benefit after two years of LTC payouts...
Standalone NLGUL plus some shared LTC plan, may work out better...especially when a couple is involved.
Just an opinion.
I agree and this is typically my first option as well. The ROP feature is really what gets people looking at these products...it probably ends up being a pretty good deal for GW and LNC as I would guess that it isn't used frequently (at least in my experience).
That being said, leveraging assets for LTC/DB is not always a bad idea. It depends on the alternatives, both from a planning perspective and from the client's willingness to commit.
Oh, but what about the residual death benefit? These products do a good job of turning 200k in DB into 20k...
That's why I would rather see a separate LTC and life policy in most circumstances...you don't get both (the DB and LTC) with linked benefit products.- Thread starter
- #9
They were designed by the same person, so product wise they are as close as you can get. It depends on the client's health. If they are really, really healthy, TLC. If they would be like a table 2-4 on life, MoneyGuard.[/QUOTE]
if married, tlc usually wins.
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