LTC or Annuity for Texas Resident

[Mr_Ed]

Well, actually you have to account for a 0 day waiting period in all settings so it might be 4-5% at best if you push a traditional policy ep down to 30 days AND buy a waiver of HC EP rider. And this will be with just a handful of companies today that many agents do not even write (NY Life, Mass Mutual), Single female applicant rates with Transamerica, Genworth, John Hancock, Northwestern, Mutual of Omaha....might need 7% return or more. So, Moneyguard is reasonable approach when faced with some companies' pricing. And Moneyguard is fixed and guaranteed. I know Scott you feel a traditional policy will never have a rate increase today but consumers and agents sometimes feel otherwise.

That is incorrect, Jack.

None of the single premium products have a zero day elimination period.

The Elimination Period is no less than the entire amount of the single premium that was deposited into the product.

And there is an "annual premium" for each of these products. The annual premium is equal to the earnings they are losing by not investing the money themselves.

 

[ltcadviser]

That is incorrect, Jack.

None of the single premium products have a zero day elimination period.

The Elimination Period is no less than the entire amount of the single premium that was deposited into the product.

And there is an "annual premium" for each of these products. The annual premium is equal to the earnings they are losing by not investing the money themselves.

Lol. Cmon Scott. Now you want to confuse the premium with the Elimination period. So, tell me what the elimination period is for the 50 year old woman that has a 90 day ep and spends $7000 year for 40 years. I guess her waiting period is 90 days plus $280,000. Let me petition the Texas State Insurance Commissioner to require Lincoln Financial Group to refile its policy specimen to change its contractual definition of Elimination Period to include the premium deposit.

Your assumption is people always have guaranteed earnings which is not always the case. And you also assume that everyone that does long term care planning is focused on investment yield with all of their assets which is absolutely not the case. Many consumers have and want to reposition assets that are in liquid money market accounts making 0.

Genworth is a fairly big LTC underwriter. It underwrites traditional LTC and hybrid LTC. I am certain the same margins are built into each product. Its actuaries did not hit themselves over the head with a dumbstick before pricing one product but not the other product.

Lincoln MG does however have actual insurance charges (10 Pay with MG2) which are different than the premium deposit and you can use to compare to a traditional policy premium.

Lincoln MG also credits 4% interest so there is your investment yield.....

 

[Mr_Ed]

... the 50 year old woman that has a 90 day ep and spends $7000 year for 40 years. I guess her waiting period is 90 days plus $280,000.
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......Lincoln MG also credits 4% interest so there is your investment yield.....

The average LTCi premium is less than $1,600 per year (including all rate increases.) I'm not sure why you would suggest a 50-year old woman would spend $7,000 per year on a policy. She could get a half million in LTCi benefits for about $1,500 per year in premium.

The "4% interest" is smoke and mirrors. The cash value grows by less than 1% per year.

 

[ltcadviser]

The average LTCi premium is less than $1,600 per year (including all rate increases.) I'm not sure why you would suggest a 50-year old woman would spend $7,000 per year on a policy. She could get a half million in LTCi benefits for about $1,500 per year in premium.

The "4% interest" is smoke and mirrors. The cash value grows by less than 1% per year.

Give it up Scott. The OP was interested in what might be the best LTC options for his client, hybrid or otherwise. I answered his question. Now you wish to have your anti-Hybrid platform. Oy vey.

 

[Mr_Ed]

Give it up Scott. The OP was interested in what might be the best LTC options for his client, hybrid or otherwise. I answered his question. Now you wish to have your anti-Hybrid platform. Oy vey.

I'm not against hybrids. It's just that traditional LTCi usually offers the best LTC benefits for the premium.

 

[ltcadviser]

I'm not against hybrids. It's just that traditional LTCi usually offers the best LTC benefits for the premium.

Well, if you start to design long term care insurance with better benefits, maybe. Start including a 0 day waiting period in all settings; include Return of Premium less claims; change contract from Guaranteed Renewable to Non Cancelable.

Oh wait. That's Lincoln Moneyguard.

 

[scagnt83]

Your assumption is people always have guaranteed earnings which is not always the case. And you also assume that everyone that does long term care planning is focused on investment yield with all of their assets which is absolutely not the case. Many consumers have and want to reposition assets that are in liquid money market accounts making 0.

People can get guaranteed earning if they want to. Consumers dont know what is available and what is not.

As Ive said before, when shown an option with guaranteed returns that can fund a traditional LTCI policy, then shown the hybrid option, most people pick the traditional policy funded by a guaranteed investment.

I can think of multiple investment options that would provide an adequate return for most situations.

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Lincoln MG also credits 4% interest so there is your investment yield.....

You are too smart to make misleading comments like that. A 4% credited interest rate is not the same as investment yield.

Why dont you tell us the actual rate of return on that "investment"....

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The cash value grows by less than 1% per year.

After 10 years....

 

[ltcadviser]

People can get guaranteed earning if they want to. Consumers dont know what is available and what is not.

As Ive said before, when shown an option with guaranteed returns that can fund a traditional LTCI policy, then shown the hybrid option, most people pick the traditional policy funded by a guaranteed investment.

I can think of multiple investment options that would provide an adequate return for most situations.

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You are too smart to make misleading comments like that. A 4% credited interest rate is not the same as investment yield.

Why dont you tell us the actual rate of return on that "investment"....

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After 10 years....

Tyler, I know all of this. I was just replying to Scott's comment about the 0 day elimination period. Hey, I bought a traditional plan for myself so you know where I lean for myself. But differering minds may reach different conclusions for what they prefer.

Once again for the OP, traditional LTC policies Mass Mutual Signature Care, NY Life Select Premier; or hybrid Lincoln Moneyguard II would be the 3 policy options. It is up to his client to determine what policy she likes.

 

[scagnt83]

Once again for the OP, traditional LTC policies Mass Mutual Signature Care, NY Life Select Premier;.

Doesnt MedAmerica have unisex rates too

 

[ltcadviser]

Doesnt MedAmerica have unisex rates too

Sure, Tyler, but for a 50 year old even you would agree to start with A++ and 180 billion in assets over B++ and less than 1 billion in assets when marriage might be for 35-45 years.

So you can include MedAmerica FlexCare as a traditional option and even Genworth TLC as a hybrid option too.

I was just narrowing down the list a little.

I think we would all agree though that hybrid annuities arent an ideal option if his client is insurable and that is the main point for the OP, isnt it?