Annuity with Long Term Care Rider

[Josh Landis]

I know most companies offer this, but I never heard of the one Charpress was talking about, I wonder what the rates, caps, and payout % looks like on that product...

I agree in the sense that I don't know any LTC riders that will double for a primary beneficiary even if they are a spouse. Typically, it is just for the annuitant, unless it is a joint policy. Maybe Chapress can share what product he's referring to.

 

[Charpress]

I agree in the sense that I don't know any LTC riders that will double for a primary beneficiary even if they are a spouse. Typically, it is just for the annuitant, unless it is a joint policy. Maybe Chapress can share what product he's referring to.

That is the one I was talking about that is proprietary to a particular FMO. I would not have brought it up if I had thought that through. However, I expect that one or more other companies will jump on the idea. It is a perfect fit for IRA money since there cannot be joint ownership of an IRA account. With either spouse being able to turn on income as the result of either spouse needing LTC (as long as the spouse is the primary beneficiary), then joint ownership is no longer a problem. It remains to be seen whether other companies embrace the idea.

 

[Justin Bilyj]

I wonder who underwrites the product? There has been quite a little argument in the ltc subforum about rate increases, and I would like to know who got ahead of the pack to price this type of product.

Just give us a hint Charpress...

 

[Charpress]

The company is Security Benefit which is generally available for all of their products except one: the Secure Income Annuity. All of their other product lines (that I know of) are available through any FMO.

I was not trying to be evasive on this, I just don't want anyone to get the idea that I'm shilling for a particular FMO or insurance company.

There are certainly a world of companies, products and supply chains to get pretty much anything that anyone could want.

All have their good points and bad points. If someone is especially concerned about inflation destroying their lifetime income, well there is a very large company that covers that base with inflation riders and Security Benefit would not be competitive.

 

[kamkaran]

Am so sorry I no longer familiar with an annuity and long term care rider policy!!!

 

[Josh Landis]

The company is Security Benefit which is generally available for all of their products except one: the Secure Income Annuity. All of their other product lines (that I know of) are available through any FMO.

I was not trying to be evasive on this, I just don't want anyone to get the idea that I'm shilling for a particular FMO or insurance company.

There are certainly a world of companies, products and supply chains to get pretty much anything that anyone could want.

All have their good points and bad points. If someone is especially concerned about inflation destroying their lifetime income, well there is a very large company that covers that base with inflation riders and Security Benefit would not be competitive.

I was able to look into this more. So, here's the deal. The TVA will not double the LTC just bc the spouse is a primary beneficiary. The only way this will work is if the policy is set up as a Joint payout. This is also how you get around the fact that it could be an IRA so it can't be issued as a joint policy, but it can still be issued as a single policy with a joint payout. There are a lot of carriers that allow this, the only difference with the TVA's is that it is actually home health care and not confined to a nursing home.

 

[SanDiego619]

I was able to look into this more. So, here's the deal. The TVA will not double the LTC just bc the spouse is a primary beneficiary. The only way this will work is if the policy is set up as a Joint payout. This is also how you get around the fact that it could be an IRA so it can't be issued as a joint policy, but it can still be issued as a single policy with a joint payout. There are a lot of carriers that allow this, the only difference with the TVA's is that it is actually home health care and not confined to a nursing home.

Unless I am mistaking though.... He wasn't referencing the TVA. He said the SIA which is an Advisors Excel product. The TVA is actually still exclusive but it is for three FMOS (Advisors still being one of them.) I understand why people write the SIA but I don't understand why TVA is still written considering FnGs Performance Pro product is almost a mirror of the TVA but with better caps.

 

[Josh Landis]

Unless I am mistaking though.... He wasn't referencing the TVA. He said the SIA which is an Advisors Excel product. The TVA is actually still exclusive but it is for three FMOS (Advisors still being one of them.) I understand why people write the SIA but I don't understand why TVA is still written considering FnGs Performance Pro product is almost a mirror of the TVA but with better caps.

If it was the SIA, I believe it still works the same way. I agree with you on the TVA. I would also say that F&G launched the SIP which is the exact same product as the SIA, but it pays .25 bps more in commission and it has the LTC rider available in California, which the SIA does not.

 

[SanDiego619]

If it was the SIA, I believe it still works the same way. I agree with you on the TVA. I would also say that F&G launched the SIP which is the exact same product as the SIA, but it pays .25 bps more in commission and it has the LTC rider available in California, which the SIA does not.

Yup. Their last two new products (I'm not even going to count the Wealth builder products cause no one cares) are directly competing with Security Benefit

 

[Charpress]

The SIA does just what I said it does. It is not the TVA. It had better do what I said 'cuz I've sold a crapload of it, including to myself.