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.

Insuring a Spouse For Free with LTCi, (well almost)

Presented by Tim Dreher

Nearly every day while working with insurance producers, I get a request to run an LTCi illustration for an individual quote for a person whom is either married or has a domestic partner. In these situations, I always ask why we are not quoting the other spouse/partner. The answers that I normally hear are either the spouse/partner is uninsurable or that the other spouse/partner is just not interested in purchasing LTCi.

I have noticed that the majority of these situations is a wife wanting LTC protection and a husband that either does not see the need or doesn’t want it because “I’ll never need it, I’ll drop dead first”.

Let’s face it, most caregivers in a long term care situation are women whom have seen it happen to a friend or maybe have even been a caregiver themselves and understand the value and need for LTC insurance.

Many of the LTC carriers we work with at Financial Brokerage offer a substantial discount for couples or domestic partners when both apply for coverage.

In those cases where the spouse/partner is insurable, I will suggest adding the spouse/partner to the quote at the minimum benefits available in order to take advantage of the spousal/partner discount.

It has been my experience that adding the spouse/partner at the minimum benefits results in a premium that is less for both spouses/partners than the cost for a policy where only one is applying.

For example, let’s look at a couple, female and male, both age 55, looking at a plan with a $5,000 per month benefit for her, 5 year benefit duration, and a 90 day elimination period with 3% compound inflation protection where the female wants coverage but the husband does not. I ran the illustrations with 3 of our most competitive carriers.

By adding the husband at minimum benefits ($1,500 per month for 2 years, with a 90 day elimination period and no inflation) the resulting savings were between 13% up to a whopping 37% savings over the price of quoting the female only. That is giving the benefit quoted above for the female spouse and the male (at minimum protection) for under the premium of what it would have been for her plan only.

The savings for a 3 year benefit (everything else the same) resulted in premium savings of between 21% on the low end to 30% savings on the high end.

LTC insurance carriers like couples and their premiums reflect it.

So the next time you’re in a situation similar to the one above, show your clients a great idea on how you can save them money on their LTCi premium while at the same time giving a reluctant spouse some coverage too.

MYTH: “I won’t need life insurance when I retire.”

Presented by Brian Leising

Four responses you can use with your clients.

  1. Really? So, that means you are getting a free funeral?

The last time I checked, it is actually against the law to dump a body in the nearest ditch, bury someone in the backyard or cremate your remains in a giant bonfire (marshmallows anyone?). You won’t die for free. Cremation may cost less than a traditional burial, but morticians and funeral homes still like to be paid for their services. Why reserve dollars you could spend and enjoy when a basic life insurance policy will cover your final expenses for pennies on the dollar? With no planning, you will become a burden to your family. (Unless they’re skilled with large bags, ropes, rocks, have a large car trunk and live near a body of water. Oh, wait, that’s the other kind of Family.)

See response #2 next week.

The College Funding Option NOBODY is Talking About

Presented by Brian Leising

If you work in the college planning market, you are well aware of strategies to move assets or overfund permanent life insurance policies for tax-free cash.  What’s better than rearranging existing dollars into better funding vehicles?  How about FREE MONEY!  One of our life insurance carriers actually offers college scholarships to children and grandchildren of policyholders.  Here is a link with more details on Foresters competitive scholarship program.  They specialize in low face amount non-med term and final expense whole life.  This would be a great addition to existing college planning and a great fit for families without the resources for larger college funding plans.

College Funding with Life Insurance – Part One

Presented by Brian Leising

If you work in the college planning market, you are well aware of strategies to move assets or overfund permanent life insurance policies for tax-free cash.  What’s better than rearranging existing dollars into better funding vehicles?  How about FREE MONEY!

One of our life insurance carriers actually offers college scholarships to children and grandchildren of policyholders.

Here is a link with more details on Foresters competitive scholarship program.

They specialize in low face amount non-med term and final expense whole life.  This would be a great addition to existing college planning and a great fit for families without the resources for larger college funding plans.