2014 LTCI Carrier Ranking

[Tothetop]

Thanks for the reply. Your post was very helpful for me. I appreciate it.

 

[jemelton]

I know benefits are not identical, but why not buy a life policy with a ltc rider?? If the they never use the benefit, it's passed onto someone. With traditional ltc, they are at risk of possible rate increases.

 

[Mr_Ed]

I know benefits are not identical, but why not buy a life policy with a ltc rider?? If the they never use the benefit, it's passed onto someone. With traditional ltc, they are at risk of possible rate increases.

When comparing a life/ltc combo policy with nearly identical LTC benefits the life/ltc combo policy is almost always twice as expensive as the LTC policy--sometimes 3x as expensive.

Do the comparison for yourself.

Most agents who compare these policies compare the life/ltc policy that has no inflation benefit with an ltci policy that has an inflation benefit.

If you drop the inflation benefit on the ltci policy you'll see that the life/ltc policy is almost always 2x to 3x as expensive.

It is true that most of the older long-term care insurance policies have had large premium increases. To protect consumers purchasing policies today, 41 states have passed strict pricing regulations. Consumers purchasing policies today are protected from the pricing mistakes of older policies.

If you live in one of those 41 states, you're doing your clients a disservice by selling them mediocre life insurance with mediocre ltc benefits.

 

[ltcadviser]

I know benefits are not identical, but why not buy a life policy with a ltc rider?? If the they never use the benefit, it's passed onto someone. With traditional ltc, they are at risk of possible rate increases.

Jemelton, a life policy with an ltc rider is appropriate for your client that has a need for permanent life insurance as a legacy or for a dependent but is also concerned that they do not have enough liquidity just in case they need long term care.

A permanent life insurance policy costs X
A permanent life insurance policy with LTC rider costs X + 20%.

Long term care policies are a fraction of the cost of X.

If your client does not wish or need to have permanent life insurance there is no need to saddle your client with the cost of X + 20%

A traditional policy is the most efficient policy or possibly a linked benefit life policy with an LTC COB rider. But a Life insurance policy with an LTC ADB rider is not a good option.

Now, if you were referring above to an inflation adjusted linked benefit policy like Lincoln Moneyguard or State Life Asset Care policy, sure these policies can be considered for LTC needs.