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 3 – Waiver of Premium Most insurance companies waive premiums while the insured is on claim and qualifying for benefits under an extended care rider. However, some still require premiums to be paid and others waive only the premium for the extended care rider, not the base life insurance policy. If the premium is not waived, a client could continue to pay premiums from the same resource they have always used or redirect part of their extended care benefit to pay the premium. This could pose a problem if the cost of care greatly exceeds their policy benefit and they have to use their own funds. Most clients will expect their premiums to be waived upon filing a claim. Look for Element 4 – Tax Code and Benefit Qualification in April

Special Dates

Presented by Jim Linn Have you ever forgotten a special date, perhaps a birthday or anniversary?  We all have, including your clients. Here are a few ideas to utilize that will build value with your clients and set yourself apart from other advisors.  Birthday calls:  A couple of days before your client’s birthday, call to wish them a Happy Birthday.  Pretty basic, but overlooked by many. Spouse Birthday calls:  Call the spouse of the birthday person a few days before as a friendly reminder.  You would be surprised how many spouses forgot and will thank you for the reminder. Employer Birthday:  If you work with businesses, contact the office manager or assistant a few days before and remind them about the Boss’s birthday and inquire if they have anything planned.  Offer to bring in a cake over the lunch hour.  This will not only show your client they are appreciated, but may generate future sales by the employees. Anniversaries:  Make sure you ask for your client’s anniversary date, including the year.  They may ask why you want the information.  Tell them you like to call a few days before in case someone has forgotten. Normally, they will smile and know what you mean.  Call the spouse a few days or even a week before and ask them if they have anything planned for their anniversary.  They will either let you know what they have planned or respond by saying “thank you for reminding me”. Calendars:  For agents that provide calendars to their clients, have your assistant write important dates on the calendar before sending them out. If you have not been gathering this information and putting it in a database, ask your clients the next time you visit with them or have your assistant start calling your clients gathering the information and putting it into your database.  These are just a few simple ideas to help build value with your clients. “Your clients don’t care how much you know, until they know how much you care.”

Term Garden

Presented by Gary Peterson Are you cultivating your “Term” garden?  Those policies you delivered in the past can produce a bumper crop of clients through conversion to a permanent plan of insurance.  If they have health issues, they can keep their better rate.  If they are healthy, they may be able to get a better plan with another company.  Don’t let them waste away.  Start “tilling” today.

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.