Selling LTC...

[carol369]

This is one emotional baby when selling this monster. My newest story to tell when selling LTC is this. I ask my mother in law (MIL), for the past year to get LTC, even last week it would of been tough to get her through underwriting. Yet two weeks ago her father had a TI - stroke, seeing the problems she decides to go ahead and bite the bullet and join my family plan. She thought it to be too expensive even though its not really once you take into account the tax deduction plus a family or association discount. Yet though she comes over and says she is ready and is 59 years old. Bad thing, one day later she has a stroke! More then likely due to the pressures of her father's health problems such as the stroke he had a week earlier!

Outside of the pressures these strokes had on my wife and my household I now understand that her my MIL is now basically in my hands totally, financially speaking. Just don't see getting her through underwriting for some time now with the stroke. Esp. since she has as soon as leaving the hospital continues to be active in her fathers care, I just can't believe this!

Moral of the story, don't be like my MIL and end up being one big burden upon your child and their family. Basically, her other children do not have the ability to financially support or the the emotion/character to be to be of any assistance. Needless to say this is adding a bit of a burden in my household. As I work on our Plans for the house we'll be building next year my wife is insisting on a full apartment for her mother, this was not a part of the plan well at least not a part of mine. Its not just the apartment but the constant care it'll take to take care of her.

Now a solid LTC Policy would of greatly of aided her retirement. She has enough years at UTMC to retire but if this stroke and obvious future strokes or Heart Attacks can demolish her retirement funding plans greatly and basically make her a ward of my family or the State.

I hear too many stories like this. How do we get potential clients to wake up & smell the coffee??

 

[TDY418]

Mutual of Omaha has a great product
Investment Options: Living Care Annuity its an annuity with a LTC Rider great product pays very good commission also.

Client gets a 2 for one if LTC is a hot button and they have the initial funds to invest.

• Non-qualified funds only
• $50,000 minimum initial premium
• $300,000 maximum initial premium (without home office approval)

Issue Ages:40-79


The 3X Guarantee:The customer will receive up to three times the annuity value, at time of first claim, to provide at least six years of long-term care benefits -Long-term care rider is guaranteed renewable -Long-term care benefits available beginning in year three of the contract and after a 90-day elimination period


Liquidity:After year one, access of up to 10 percent of the annuity value is allowed in each contract year without a withdrawal charge. If more than 10 percent of the annuity value is accessed, the following withdrawal charge percentages will apply to the amount of the withdrawal in excess of 10 percent.

If you're working the senior market with Med supps this as we know is where the money is; this is a great product to have in your portfolio.

 

[hardwork]

I.m not sure I would define this product as being "GREAT"
Here are some thought's :
1) 24 month Elimination Period on LTC Benefit. Henry "Client" has
been charged over $2200.00 before becoming illegible for coverage per Moo's Living Care Brochure. Henry is a 65 yr old healthy I assume, with a $100,000 deposit.Assumed interest rate of 3% End of contract yr 1/ Projected Annuity value $101,894.This means Henry is getting 1.89% on his money. This is with out inflation protection, that would cost him!
2) After 24 months if Henry needed care, he would have to use all of his own money first, except for $1. Now correct me if I'm wrong; Some of this money surly would be taxable income?
3)After 24 months Moo pays a daily rate of $145.00 = $4350.00 per month. Who pays the other $2000/$2500 per month ? Most
Nursing Nursing Homes are up around $6000/7000 a month in my area.I hope Henry didn't need to take income from this product!
That would have reduced ltc benefit 3x withdrawal amount.
4)So lets say Henry needed care for 5 yrs/ He would have used
all of his deposit in the first 2 yrs, and $30,000 per yr for the other 3. Henry paid $190,000 for his care.( Not including interest) Lord rest his Soul !
5) Henry is buying LTC if he knows it or not,just not the right kind. Remember ltc is asset protection! Are we really protecting
Henry's assets with this product? I will admit you are hedging
the risk,and if that's all Henry needs to do than I Guess it is a
Great product.

 

[briko3]

Lincoln has a product, "MoneyGuard" where you invest a certain amount of money (usually 100K, but can be less). For a recent client I have, he invested 100K, has a $150,000 death benefit and $369,000 "bucket of money" to use for LTC if needed. I think my commission on it was 5%. No matter how much he uses for LTC, he will never have less than a $16,000 death benefit.

And the kicker is that he can pull out his original $100,000 any time he wants with no penalty. He could pull it out tomorrow if he wanted to, but naturally you'd get a chargeback if he did within the first year.

 

[hardwork]

briko3,
I have not looked @ this product real hard, "MoneyGaurd"
Lets go back to "Henry" He could of bought a TQ LTC
policy for approx $3,000 per yr with a 260,000 in a bucket!
200.00 a day/5yr/ with HHC . Surly the interest on 100,000
would cover the LTC premium,or a SPIA. And you make two
sales.

I just don't like the idea of the client having to use a large chunk of there own money if they need care,when they can truly transfer the risk.

I will look at the Out line of coverage of MoneyGaurd.
Thanks for your input!

 

[Frank Stastny]

I just don't like the idea of the client having to use a large chunk of there own money if they need care,when they can truly transfer the risk.

Neither do I.

I really no longer have a "dog that hunts in LTC" for a whole host of reasons. However when I did I very seldom recommended an elimination period that long. My prospect would have to have had a lot of money for me to do that. I mean a LOT.

I understand the reasons agents do that, it reduces the premium but most prospects only see a reduction in premium, not the total amount they will have to pay "out of their pocket". The only thing they see is a lower premium. When they have to use it they get the "surprise of their life".

That is not something I want my clients to experience.

While on the subject, I have been told by a lot of prospects that they have been told by agents that their Med Supp policy will pay the first 100 days if they have to go to a nursing home. That is totally false.

There, I feel better now.

 

[moonlightandmargaritas]

While on the subject, I have been told by a lot of prospects that they have been told by agents that their Med Supp policy will pay the first 100 days if they have to go to a nursing home. That is totally false.

I don't know that it's totally false.

It will pay up to a certain amount for skilled nursing care, in a Medicare approved facility, after a three day hospital stay...if it occurs within thirty days of leaving the hospital.

 

[Frank Stastny]

I don't know that it's totally false.

It will pay up to a certain amount for skilled nursing care, in a Medicare approved facility, after a three day hospital stay...if it occurs within thirty days of leaving the hospital.

You are correct about the qualifications to receive the Skilled Nursing benefit.

However, for those agents who may be confused about Skilled Nursing, it is only basically for recovery from an illness or injury. The patient must be showing daily improvement for Medicare to approve continuation of Skilled Nursing. If one day goes by and the patient is not showing improvement Medicare will discontinue that benefit.

Medicare will not pay the Skilled Nursing benefit if a person goes to a nursing home because they are not able to preform the ADL's.

Some hospitals may not have a Skilled Nursing facility. In those cases Medicare will contract with a nursing home to provide those services. This is one of the reasons people erroneously assume that Medicare pays the Skilled Nursing benefit if someone goes into a nursing home because they can no longer take care of themselves..

However, Medicare is not paying or going to pay that benefit is an individual goes to a nursing home because they can no longer take care of themselves.

 

[hardwork]

Frank, Kinda surprised you put down your hunting dog! My Med supp clients are some of my best prospects for LTC.
What are some of the reasons you left that market?

 

[Frank Stastny]

Frank, Kinda surprised you put down your hunting dog! My Med supp clients are some of my best prospects for LTC.
What are some of the reasons you left that market?

All of the FE and LTC I have ever written came originally from a Med Supp client. My original appointment was always for Med Supps. I discovered a long time ago that LTC and FE are a lot more difficult to prospect for. Med Supps are extremely by comparison.

The main reason I no longer offer it is strictly do to the amount of time it takes. YIO does keep me fairly busy. It has been my "baby" for some time. Selling Med Supps is both easy and normally a "one call" sale.

This leaves plenty of time for me to play with YIO and to help agents increase their Med Supp production. Both of which I enjoy very much.