Long Term Care and Disability Insurance

The Element Advantage – a practical, accessible, and affordable…

Presented by Michelle Daharsh A new long term care solution was introduced to the industry in late June of this year. Designed by Genworth, this plan was built around their flagship product – Privileged Choice Flex 3. The concept of Element is to still offer comprehensive coverage for long term care but make the process for the client easier to understand, requires minimal decisions for them to make, offers an expedited process through underwriting, and is designed to reach more of the middle market with affordable coverage. Element features four preset packages and two decisions to make: determine what level of protection your clients want, and for couples, if the optional Shared Coverage benefit is desired. The four plans available are the Element 25, 50, 75, and 100. These plans correspond with the coverage maximum dollars available of $25,000, $50,000, $75,000 and $100,000. These options allow the client to choose the level of coverage that works best with their needs and budgets. The Element plan still includes monthly reimbursement, 1st day home care, inflation protection of 2% compound, waiver of premium and return of premium up to age 65. The belief of selling smaller, easier to understand coverage packages shouldn’t require the same amount of time and effort as fully customized larger plans. With one underwriting category the new business process is expedited, along with minimal additional requirements being used, thus making the policy coverage available faster for you and your client. The Element brochure is a helpful sales tool to walk a client through the sales process. It includes the prequalification questions, description of the plan, examples of coverage, and monthly premium rates. So if you don’t have access to the internet or quoting software you can still provide your client a monthly price! Take a look at your book of business and see which of your clients decided against Long Term Care coverage because of premium cost. Maybe Element will be the right fit for them! If you would like the Element Brochure to help you along the way, contact Financial Brokerage at 800-397-9999 and we can provide you that resource!
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.