Long Term Care and Disability Insurance

Are You Ready to Embrace the Future of Long…

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.
Life Insurance

College Funding with Life Insurance – Part Two

Presented by Brian Leising How do you determine how much life insurance your client needs? Do you use a fact finder?  Does it include college expenses?  Would you even know where to begin calculating future college expenses?  Very often, we do a great job asking clients about fixed expenses such as their mortgage, funeral costs and credit cards, plus ongoing income needs.  What about the future cost of college for their children? Through Financial Brokerage, you have access to paper and electronic analysis tools to help your clients determine the current and future costs of college at public and private universities throughout the country.  Completing this part of a needs analysis should add $200,000 to each life insurance sale you make…per child.
Life Insurance

Back to the Future

Presented by Gary Peterson   Following is a concept that can generate life sales into the future.   When you sell a term plan to your clients, prepare them for the next sale by discussing their needs for permanent insurance.  One of our carriers offers Return of Premium on their Universal Life product in addition to a Chronic Illness rider.  Another carrier has the option to make the change from a Universal Life to an Index Universal Life.   The approach would be:
  • Sell the term
  • Prepare clients for conversion to a Universal Life in a few years
  • In 20 years, get refund of premium or exercise the Chronic Illness rider for Living Benefits (if desired)
OR
  • Change the Universal Life to an Index Universal Life to build potential supplemental retirement funds
Call me at 800-397-9999 for more details on these potential solutions for your clients.  Remember, don’t just sell for today!  
Long Term Care and Disability Insurance

Are your clients assets protected if they need long…

Presented by Donna Ries When talking to your clients about extended long term care planning, it is important to emphasize that income pays for care, not assets. Health insurance covers virtually none of the long term care costs of nursing homes, assisted living facilities or in-home care. The care many people may require late in life is paid out of pocket. Even substantial savings can quickly be spent for extended care. The Long Term Care Partnership Program may be an answer to help protect your client’s assets. The 2005 Deficit Reduction Act combines public and private insurance resources to help clients prepare for potential long term care needs. Because state and Medicaid eligibility requirements may vary, you should consult an attorney or tax advisor for information related to a specific situation. Long term care insurance under these programs may create an opportunity to enjoy the benefits of both long term care insurance coverage and asset protection in the event that Medicaid benefits are required. With a Partnership-qualified long term care policy, your client may be able to qualify for Medicaid while retaining more assets than otherwise permitted. To qualify for the benefits of a Partnership Program, the policy must be a federally tax-qualified plan and must meet inflation protection requirements based on the client’s age as of the date of the application. Individual state requirements may vary. Certain states may require specific levels of inflation protection to qualify. If the client is younger than 61, the plan must include compound inflation. For ages 61 to 75, the plan must include some form of inflation protection. As an example, suppose your client purchased Partnership-qualified long term care insurance and received $300,000 in benefits. Usually, your client would be able to keep an additional $300,000 in savings or investments, in addition to the assets your state already allows your client to keep and still meet your state’s asset test for qualifying for Medicaid. Without the Partnership Program, your state may require that your client spend their $300,000 in savings or investments for long term care services prior to becoming eligible for Medicaid. Remember, generally both income and assets are included in determining eligibility for Medicaid, and that the Partnership Program protection relates to your client’s assets only. It is important to note that, in most states, you are not required to use all the benefits of your long term care insurance prior to receiving dollar-for-dollar asset protection. Every benefit dollar counts. It’s critical that you discuss how the cost of extended care will be covered. Call us to discuss how long term care planning can help protect your client’s assets.