Life Insurance

The Eight Elements of Extended Care Riders – Element…

Presented by  Brian Leising Finding the right formula for each client Not all extended care riders on life insurance policies are created equally. Do you know the differences? Different combinations will appeal to different clients more than others. Here are eight of the major distinguishing features among insurance companies offering extended care riders. All include some combination of the eight elements. This allows you to find the right formula for each client.
Premium Payments Benefit Qualification Benefit Amount
Pf Payment Frequency Pa Payment Amount
Lg Lapse Guarantee Tc Tax Code Pm Payment Method
Wp Waiver of Premium Ep Elimination Period If Inflation
Element 2 – No-lapse guarantee One of the primary reasons clients give for purchasing life insurance-based extended care plans over traditional extended care policies is the fact their premium will never change. As a health insurance product, traditional LTC polices are subject to rate increases. Good luck keeping your clients happy when they receive a rate increase notice of 50% or more! With a no-lapse guarantee universal life or a whole life based contract, your clients never have to worry about future rate increases. Everything is in their control. If they pay their premiums on time, every time, take no loans or withdrawals, their premiums are guaranteed to remain level. Some companies also offer life insurance without guarantees for their extended care riders. These need to be monitored regularly to ensure they maintain enough cash value to remain in force. Look for Element 3 – Waiver of Premium in March.
Long Term Care and Disability Insurance

Long Term Care vs. Short Term Care – What…

Presented by Leonard Berthelsen Most agents probably haven’t given much thought to this issue and quite frankly, I can’t blame them.  Long term care insurance has experienced slow growth over the past several years for a variety of reasons.  Lack of understanding the protection, underwriting challenges, cost of coverage which continues to increase, and then the ever-present rate increases on older blocks of business.  Long term care can still meet the needs of your clients; however, there is another consideration to think about. Let’s take all the issues above and turn them into sales opportunities for 2016.  Short term care/recovery care products may have arrived at the right time.  They are easier products to understand and explain without all the compliance restrictions of traditional long term care insurance.  With limited benefit durations (generally no more than 360 days of coverage), underwriting risks are dramatically reduced for the carrier and the pricing reflects this.  Yes, short term care plans are relatively new to the market, but certainly fill a void that long term care has left. Start 2016 off with a recommitment to address the needs of your clients regarding short nursing home stays, recovery care after an illness, accidents, or surgeries.  When pricing or underwriting challenges are dragging down your ability to place coverage, these newer shorter duration products just might be the answer. Look for our promotions for the addition of Short Term Care/Recovery Care products or call your Sales Manager at 800-397-9999 now for details.
Long Term Care and Disability Insurance

Long Term Care Concerns

Presented by Michelle Daharsh Not many people really ever want to think that they will need long term care services because it is not a pleasant thought. Having to rely on someone else because we became frail or our cognitive ability has slowed are certainly not things that we look forward to. According to the 2015 Medicare & You, Centers for Medicare & Medicaid Services, 70% of people over the age of 65 will need long term care services and support at some point in their life. Sort of an ominous fact, don’t you think? Ask your client this simple question: “What is your greatest concern when it comes to long term care?” This question will be sure to stir up answers ranging from not having to rely on their family for care, or staying in their home as long as possible, or they hear it is awfully expensive. Maybe their concern is protecting the legacy that they worked so hard to build over the years? Regardless of the answer, the end result is most likely all the same – if a long term care event occurs and they don’t have long term care insurance in place, all of these concerns can, and likely will, be exposed. Being able to uncover your clients’ concerns for long term care puts you, as the agent, in a position to educate them on what protection it does provide. Not only does long term care insurance provide care for the client, but it also protects the family, their home and their legacy. Show your clients the need for long term care insurance first – ask them questions, assess their situation, and help them understand their options. Doing this will give them the peace of mind that their biggest concerns are protected and making the purchase of long term care insurance a much easier decision.
Long Term Care and Disability Insurance

Disability Income Protection – Good for Both the Client…

Presented by Tim Dreher There are many good reasons for making the effort to start talking to your clients about Disability Income protection. Two very important ones are protecting your clients from the financial consequences of a debilitating accident/injury or serious sickness/illness, and the potential significant increase in your income from writing a new line of business. It’s a natural win-win. Disability Income protection is a great product. It protects what many consider to be your client’s greatest asset…their ability to earn a living. With someone becoming disabled in this country every 1.2 seconds, the disabled have become the largest minority is the US. And yet, 69% of America’s workforce has no long term disability coverage at all. The market for Income protection insurance is wide open. It should be your mission in 2016 to talk to as many people as possible about this affordable coverage. Don’t feel shy about bringing up the subject of a disability. Let your client know that you care enough about them and their financial well-being that they at least need to have the conversation with you and explore their options. Be proud of the fact that no one else can protect them like you can. Their employer, their accountant, their attorney, and the government can’t protect them like you can. Only you, as their insurance professional and financial advisor, can protect them from a devastating financial disaster should they become unable to earn a paycheck due to a disability. Nearly 60% of all home foreclosures are due to a disability and you are in the best position to help your clients make sure that it doesn’t happen to them. Don’t let your clients, friends or family have to rely on a bake sale or a spaghetti feed to help pay their bills if they should ever find themselves in a position of being unable to work and make a living. In a recent survey, only 18% of consumers remember their insurance agent ever mentioning Disability Income protection to them. Make talking about Income Protection a part of every conversation that you have with your clients and prospects in 2016 and you will reap the rewards. Grab a brochure and get out and see the people. Let’s make it a great new year in protecting people’s income & assets.  
Annuities

Document Your Appointment

Presented by David Corwin I read an article recently that caused me to think about a few things. When Insurance Professionals meet with their clients to sell annuities and/or life policies, very few of them will document or take some extra time to make notes about the appointment. It is critical to do so due to this litigious society we find ourselves in. It isn’t the client that you have to worry about; it is the beneficiaries and or loved ones. Especially on older clients that may suffer from Alzheimer’s disease, they won’t remember what they bought, much less their own name. You will be questioned as to their state of mind during the sale and if you don’t have an answer then there will undoubtedly be ramifications including fines and/or jail time. There have been discussions around the country about whether producers should require their prospective clients to take a mental exam before buying a policy. Document everything. Document statements made by the client during the sales interview. Those comments in the context of the sales process will help attorneys and courts review the conditions under which the sale was made. This will ultimately be a good habit to get into not only for the possible suit that might come you way, but will also be a reminder for possible future sales.