Level Term Rates with Up-To Lifetime Coverage
Presented by Jim Linn We receive several calls a day requesting quotes on clients that are 60+ years old. Typically the agent is requesting the maximum term length for the least amount of premium. In working with someone 60+ years of age, at best, the longest time frame of term insurance available is 20 years, taking them to age 80 or 90. A new study on mortality showed that the average mortality today is approximately 87, meaning their plan would fail them 7 years too early if they elected a 20 year plan. Several carriers now offer Guaranteed Universal Life (GUL) products that allow you to specify a time frame, such as coverage to age 90, 95, 100 or up through age 120. These products are death-benefit driven and are not interest-rate based, allowing for a true guaranteed premium. Also, depending on the state and product, most include an Accelerated Death Benefit feature for Terminal Illness, Chronic Illness or Critical illness, another added benefit of the product. How do GUL’s compare against similar term options? Male age 70 Coverage Amount: $100K Standard Non-Tobacco risk class 20 Year Term Monthly Premium: $290 GUL to age 90 Monthly Premium: $253 That is a 15% premium difference for the same face amount and duration of coverage. Plus the Accelerated Death Benefit features are included. Contact your life marketer at 800-397-9999 for more details!Providing LTC Coverage for an Uninsurable Spouse
Presented by Tim Dreher Long Term Care awareness month is November and I wanted to expand on my last blog where I wrote about adding an insurable spouse/partner to take advantage of the substantial discounts that the carriers provide. In most cases the combined premium when adding the spouse/partner at minimum benefits, is less than if the one applied for coverage by themselves. So what can be done in a situation where a spouse/partner is uninsurable? This can be a challenge to even the most seasoned producer. Many times the prospect will abruptly end the conversation when it is determined that there is an uninsurable spouse/partner.It is important to point out to the prospect that what we see frequently happen, is the healthy spouse/partner becomes the care giver for that uninsurable spouse/partner. Many times that can happen much sooner than what anyone anticipated. As a result of being that caregiver, the health of the insurable spouse/partner declines rapidly due to the stresses of being that caregiver. It has been reported that up to 60% of caregivers were unprepared for the physical demands of being that caregiver.1 There is probably not a better argument for the healthy spouse/partner to consider and purchase LTCi.
Mutual of Omaha’s MutualCare LTCi policy has a very unique rider, called the Security Benefit Rider that can be added to an LTC policy to provide a solution for just such a situation. If the insured spouse/partner requires long term care services after the policy is in effect, the Rider can be activated to provide additional funds to help pay for the cost of providing care for the uninsurable spouse/partner. Up to 60% of the insured’s monthly reimbursement benefit is made available to help pay for approved care for the uninsured spouse/partner. There is no medical underwriting required for this Rider, and the additional benefits paid out for the approved care do not reduce the insured’s policy limits. It is a separate benefit for an uninsurable spouse. Unfortunately, there will be times when a producer will find themselves in a situation where couples/partners apply for coverage and one is declined. When this happens, we often will hear “If we both can’t get it, than we don’t want it”. You might want to consider this rider, as it might just be the answer to saving the sale. This unique feature when understood, can be a great relief for uninsurable spouses/partners. Talk with one of the LTCi marketing specialists at Financial Brokerage about more details on how this rider works.- Transamerica LTC study 2015