A question that agents (and clients) often avoid

How do you plan to pay for the care you may need someday? Don’t avoid showing your clients possible solutions to a concern that isn’t going away. Below is an overview of addressing the solution when examining life insurance with an LTC rider vs. traditional long term care solutions.

LTCi Options

Traditional Long Term Care Insurance

Pros:

  • Inflation rider to increase benefit (bucket of money grows)
  • Premiums cease when you go on claim

Cons:

  • Rate increases
  • A lot of premium… if I never use it
 

Life Insurance with an LTC Rider

Pros:

  • Somebody is going to get paid. (insured with LTC benefits, beneficiaries at death, combo of both)
  • No rate increases

Cons:

  • No inflation rider (most people won’t buy enough)
  • Premiums are paid until death (unless a limited pay is utilized)
 

My thoughts

  • Monthly LTC benefit is a plus
  • Chances are most likely for the female to use LTC and the male will use Death Benefit (nursing home population)
  • Any shortage of benefit for female will most likely be made up with male
  • Traditional LTC has a tendency to price client “out” when time nears to utilize it
  • Something is better than nothing… the “threat” is real.
  • Apply to see what the “offer” by the insurance company will be… then plug in REAL numbers on how to pay the premium. No money collected with application (for the Life/LTC)… wait on offer.
  • Use existing life policies (1035 exchange) to reduce premium
 

Now is a great time to contact your clients and review existing life contracts and to talk about LTC solutions.


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