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.
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 1 – Payment frequency Life insurance policies with extended care benefits come in single-pay or multi-pay varieties. The single-pay plans were the first life insurance based extended care plans on the market. Clients pay one lump sum into a modified endowment contract (MEC) which is leveraged to purchase a death benefit and a long term care (LTC) benefit. In many situations, the death benefit approximately doubles the lump sum and the total long term care benefit nearly triples the lump sum. This policy design works well for clients with money already set aside to “self-insure” their extended care risk. Potential clients for multi-pay policies comprise a much larger market and account for most sales. These are funded with recurring (annual, semi-annual, quarterly, monthly) premiums and are an affordable option for clients who are used to paying for all their insurance policies (auto, homeowners, traditional LTC, health) in this manner. Look for Element 2 – No-lapse guarantee in February.
Annuities

Where There’s a Problem – We Have a Solution

Presented by Deb Strong Do you have clients that are concerned with how they are going to pay for Long Term Care coverage?  If you do, you need to call your Sales Manager at Financial Brokerage at 800-397-9999.  We have many products that are protected by the Pension Protection Act, which means that structured properly, the long term care payments made to the client for their care are tax free!  One option is an annuity that also provides long-term care coverage, giving the client not only protection from the stock market, but also a leveraged pool of funds to use for care.  Nearly everyone buys insurance to cover their car and their home, as they should; own an asset and protect it.  So, think about this: A truly great financial plan can be put in place to grow assets with proper diversification, taxable and tax-free accounts, etc., but forgetting to put in place protection for those assets can be disastrous.  When one year of nursing home care can cost as much as $90,000, then how many years would it take to wipe out that well-crafted planning?  Don’t forget to discuss this fact with your clients and let us help you find the perfect product that transfers the risk of long-term care expenses where they belong . . . to the insurance carrier.