Short Term Care Might Just Be The Answer You Are Looking For

Presented by Michelle Daharsh

Short Term Care . . . why you and your clients should consider it.

If you understand the need for Long Term Care insurance but find the premiums are too expensive, your client can’t make it through underwriting or they are over the age of 79, then a conversation about Short Term Care with that client may be the answer you are looking for. Short Term Care is limited in its scope of coverage but will cover the majority of all nursing home stays at a price that is much more affordable than Long Term Care insurance. Also, the coverage, though short, does provide a degree of protection from the depletion of your client’s assets. Consider some of the benefits:

Issue ages: 18-85

Daily Benefits: $20-$300

Benefit periods: 180 or 360 days with a 20 day Elimination period

Restoration of Benefits

Full Benefits paid for Alzheimer’s Disease and many more

Short Term Care coverage is an affordable approach to providing limited coverage towards the high cost of nursing home care for your clients. For more information and pricing on this product, please contact us at Financial Brokerage at 800-397-9999.

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.

  1. Transamerica LTC study 2015

Alaska, Colorado, Oregon and Washington… What do they all have in common?

Presented by Jim Linn

Answer:  Legalization of recreational marijuana.  As a producer, you may have worked with clients and prospects that use marijuana, whether medicinal or recreational.  In a short article about marijuana usage on Lifehealthpro.com, you can explore how 29% of insurers can offer non-tobacco rates to marijuana users depending on frequency and whether medicinal or recreational.  Should you have a client that uses marijuana or tobacco products such as chew, pipes, e-cigs, cigars or the patch, contact your Financial Brokerage Life Sales Manager at 800-397-9999 for potential non-tobacco options.

 

Click the link below for the article:

http://www.lifehealthpro.com/2015/06/30/weed-users-avoid-smoker-penalties-at-29-of-us-life

 

Are You Ready to Embrace the Future of Long Term Care Coverage?

Presented by Leonard Berthelsen

I usually try to stay away from being company specific or naming products in my writings, but sometimes you have to do it when something new comes along.

New generations of bold thinking are at the doors of LTC planning and design.

It really was only a matter of time before LTC carriers used creative thinking and a new fresh approach to product design to offer new insurance products to the marketplace.

John Hancock introduced Performance LTC™ to the industry in April and has already seen successes with this new approach.  “The boldest ideas of new generations are infused with creative thinking and fresh perspectives, while preserving the finest traditions of the past” is how Hancock is explaining their thinking with this new long term care solution for the agent and their clients.

Hancock’s press release states “Performance LTC™ offers a breakthrough design that will provide your clients with many of the features found in a traditional policy, while offering a more predictable customer experience. This new LTC insurance solution allows your clients to make informed decisions about their coverage so it can evolve over time to meet their financial needs and goals.”

Anything addressing the rising premium issue of late is welcome news. This is a good start.  While it may not be the solution to every issue affecting the buying decision consumers face in considering long term care coverage, it does address several key components.

A lower “buy in” point from the beginning along with modest, controlled adjustments over the life of the contract may just reduce some of the risk of heavy rate adjustments later.  The policyholder will have a larger stake in how the plan performs over time and that should be welcome news for producers and consumers who have shied away from LTC in recent years because of the uncertainty of the product.

Take a look at Hancock’s new product as I think this is a start of the creative thinking and fresh approach we’ve been looking for.