Single Premium LI or Annuity with LTC

[texaslady]

Thoughts on this? I have clients who are interested in LTC insurance, and I did some research on my own, and was able to find annuities and single premium life insurance that offer a rider for LTC expenses. Genworth has an annuity that will triple the amount you put in IF used for LTC expenses, if they decide to just draw out the money, they will be taxed on the growth with interest. Also, there are surrender charges and penalties. Sagicor offers a single premium life insurance product that gives a 10% bonus to the client, and offers a guaranteed return of premium (if they decide down the line they will never need LTC and want their money back, they can get the original amount paid in at least). Also, this money is passed on to the beneficiary tax free, but the annuity would be taxable.

Did I get all this correct? What do you guys prefer to sell?

 

[GreenSky]

Glad you posted this. I've decided to promote this type of product starting in January. In fact, I have already set up a seminar at a Sun City location.

I've done some research and find there are a number of companies offering both LI and Annuities with LTC riders.

Send me an email and I'll point you towards a GA I'll be using. I don't recruit so no fear of being "pimped."

I'd also like to speak with you so we compare notes as we move forward.

I've done well with health insurance and Medicare, but the writing is on the wall. Time to activate Plan B before I have to.

Rick

 

[VolAgent]

So Genworth reports the interest portion the LTC benefit as taxable? Interesting.

LFG offers both a UL and annuity with LTC riders. When used for LTC, neither are taxable.

 

[texaslady]

So Genworth reports the interest portion the LTC benefit as taxable? Interesting.

LFG offers both a UL and annuity with LTC riders. When used for LTC, neither are taxable.

No, it's taxed when it's NOT being used for LTC (Pension Protection Act implemented this year, they can't tax it if it's being used for LTC).
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Glad you posted this. I've decided to promote this type of product starting in January. In fact, I have already set up a seminar at a Sun City location.

I've done some research and find there are a number of companies offering both LI and Annuities with LTC riders.

Send me an email and I'll point you towards a GA I'll be using. I don't recruit so no fear of being "pimped."

I'd also like to speak with you so we compare notes as we move forward.

I've done well with health insurance and Medicare, but the writing is on the wall. Time to activate Plan B before I have to.

Rick

Yeah, from what I've read so far, it seems like a much better option compared to standard LTC insurance (which most seniors don't want to think about, let alone discuss with an agent, I personally shudder when I say the word "nursing home"). This product is easier and more comfortable IMHO because it's technically an annuity or life insurance, and it pays for home health care expenses as well. All it takes if for one client to see a family member or friend go through the Medicaid spend down process to take something like this seriously. I am already working with an MGA, Forward Strategies out of Arizona. They are very helpful and I'm happy, but always open if there is something better out there....

 

[TRSecurity]

Also look into the products that allow you to accelerate the death benefit of life insurance for a LTC need. National Life Group is one I use in NY. I take the "living benefits" approach to those who don't like the "use it or lose it" concept of LTC. It's also good for those who get declined for LTC as all you need to do with these products is qualify for the life insurance.

Check into the underwriting requirements on the products you use as LTC can be difficult to get issued.

 

[texaslady]

Also look into the products that allow you to accelerate the death benefit of life insurance for a LTC need. National Life Group is one I use in NY. I take the "living benefits" approach to those who don't like the "use it or lose it" concept of LTC. It's also good for those who get declined for LTC as all you need to do with these products is qualify for the life insurance.

Check into the underwriting requirements on the products you use as LTC can be difficult to get issued.

The two I posted are not fully underwritten, so no paramed. I know there are others that are however (for example, Genworth UL with LTC rider) but when I compared them, I saw no benefit for the client to choose that over the single premium LI or annuity.