Your Client Can Open Doors 1, 2 and 3 with Linked Benefit Plans

Authored by Matt Nutzman

Would you like to see what’s behind Door 1, 2 or 3? All may be equally good options, but suit different needs. It’s hard to choose when given multiple options. What if you could have the option of opening all three doors?

A Linked Benefit (LB) policy is similar in that it offers several options. An LB policy offers long term care (LTC) coverage, liquidity and a death benefit. If your client has a change in plans and decides not to keep the policy, a return of premium benefit may allow them to get back their initial premium.

LB policies attract people who:

• Are retired/approaching retirement

• Are more affluent with higher net worth

• Want to protect against potential LTC expenses AND leave a legacy to their loved ones

Market interest for a product that links LTC benefits is growing. Following strong double-digit growth in 2009, new premium sales of LB products jumped 66% in 2010 and another 70% in 2011, reaching $1.4 billion. This double digit growth may be because the LB policy is attracting new and younger markets. LIMRA found that buyers in their 60’s continue to be the biggest portion of in-force policies; however younger markets are finding them attractive as well.  LIMRA’s annual study of leading insurers found that 29% of buyers of these combo policies were under age 60 in 2011 compared to only 28% in 2010.

Call your marketer at Financial Brokerage Inc. to discuss both the Annuity and Life Linked Benefit plans that are available to your clients.

Posted in Sales & Marketing.

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