Life Insurance

Three Options for Long-Term Needs

Presented by Gary Peterson Long term care is exploding with the Baby Boomers coming of age. As an agent, you need to prepare your clients for this reality. There are multiple ways you can help your clients cover the costs involved. Three of those ways are described below. One option is to use funds that they save over the years. If they are extremely wealthy, this self-funding route may be a good option. The second option is to purchase Long Term Care insurance. This is better than the first, however, your client may not ever use the insurance and feel as though the money they used to pay premiums was wasted. A third option is to purchase life insurance or an annuity with a linked benefit or long-term care rider. This may provide living benefits for chronic illnesses and long-term needs, as well as a death benefit to protect their family. Give me a call at 800-397-9999 to discuss these options in more depth.
Long Term Care and Disability Insurance

Long Term Care Concerns

Presented by Michelle Daharsh Not many people really ever want to think that they will need long term care services because it is not a pleasant thought. Having to rely on someone else because we became frail or our cognitive ability has slowed are certainly not things that we look forward to. According to the 2015 Medicare & You, Centers for Medicare & Medicaid Services, 70% of people over the age of 65 will need long term care services and support at some point in their life. Sort of an ominous fact, don’t you think? Ask your client this simple question: “What is your greatest concern when it comes to long term care?” This question will be sure to stir up answers ranging from not having to rely on their family for care, or staying in their home as long as possible, or they hear it is awfully expensive. Maybe their concern is protecting the legacy that they worked so hard to build over the years? Regardless of the answer, the end result is most likely all the same – if a long term care event occurs and they don’t have long term care insurance in place, all of these concerns can, and likely will, be exposed. Being able to uncover your clients’ concerns for long term care puts you, as the agent, in a position to educate them on what protection it does provide. Not only does long term care insurance provide care for the client, but it also protects the family, their home and their legacy. Show your clients the need for long term care insurance first – ask them questions, assess their situation, and help them understand their options. Doing this will give them the peace of mind that their biggest concerns are protected and making the purchase of long term care insurance a much easier decision.

The Gift of a Lifetime . . .

Presented by Richard Mangiameli As we work with seniors, it is very important not only to protect their principle but also to provide them with a Gift of a Lifetime Income. Help them choose from all these many options:  roll-ups, spreads, cap rates, bonuses, company ratings, liquidity needs, surrender charges and withdrawal options. This article in NAIFA’s Advisor Today, will encourage you and remind you to remember to be proud of what we provide.
Long Term Care and Disability Insurance

Pie Choices

Presented by Donna Ries When talking long term care to your clients, are you offering Apple or Chocolate Silk Pie? When talking about funding your clients’ potential extended care needs, they may be faced with a variety of options.  Think of it like offering your clients a variety of pies.  They may have choices such as apple, cherry or French silk.  One pie is not necessarily better than the other, they are just different.  Of course, they have different prices. Just like the pie choices, long term care options for your clients can be offered with different features.  Fitting the product and features to your clients’ needs is what’s really important.  There are hybrid or linked products with a life insurance base and a long term or chronic illness rider.  Maybe it’s an annuity with a long term care component.  Some clients may choose to fund their long term care expenses with an accelerated death benefit.  Again, not necessarily better, but certainly different. There is also the traditional stand-alone long term care policy.  Think of this as the basic apple pie.  Depending on the clients’ needs, enhanced benefits can be added to the plan to satisfy the “appetite” of your client.  Just like the apple pie can have a slice of cheese, ice cream or whipped cream (tailoring to the individual’s taste) purchasing pure insurance coverage without a large infusion of premium on the front end, is again, just choices. The important issue here is not “pitting” a life insurance plan against an annuity or traditional long term care insurance – it’s getting your client to purchase something.  Which pie is best for your client in determining their long term care needs?  Find out what features or ingredients are most important to your client, what is affordable and what will be sustainable.  Contact your Financial Brokerage sales manager today at 800-397-9999 to help you with your next long term care sales solution for your client.
Life Insurance

What’s behind door number 3? A life insurance conversion…

Presented by Brian Leising Are you unhappy with the conversion options available to your clients? We typically sell term life insurance to fill a temporary need, but over time needs change. The reasons for coverage change from debt payoff (mortgage) and employment income replacement to social security income replacement, health care expenses and wealth transfer. These are needs your clients will have between retirement and death. Compared to their younger selves (your original term clients), 20-30 years gave your clients not only age, but extra pounds and health problems that didn’t exist decades earlier. What do you do when a new fully underwritten permanent plan of life insurance is not an option? You look at conversion options. Most insurance companies allow policyholders to convert their term policy anytime during their initial level term period, up to around age 70, to any permanent plan they make available at the time of claim. Good news! Your client can get permanent coverage. Bad news! They are at the insurance company’s mercy as to what kind of plan is available. Many carriers limit the products available for conversion, usually omitting their most competitive plans, some offering pricy whole life or current assumption (no guarantees) Universal Life. Some carriers by current practice make all their current permanent plans available. Good for them. What will their current practice be in 20 years? Who will own the company then? Clients have no guarantee an insurance company will continue that practice and may be stuck with no guarantees or with high priced options. If you can sell your client a permanent and term plan from the start, you can solve this problem. We know that doesn’t work in every situation. Clients may not see the need for permanent coverage or the price may be too high. What else can you do? Check back next week for the answer in part two.