Any traditional LTC available for age 80?

[yorkriver1]

My prospect could potentially qualify with one carrier prior to age 80, but has had one recent condition that requires a 6 month postpone, then the prospect will be over the carrier's issue age.

The policy is needed to preserve assets for the spouse who is not already in a nursing home and in a spend down situation. Non traditional life and annuity options most likely won't help here. The idea from the planner is to try to save assets for the spouse not institutionalized.

 

[fed up]

Although they have been bashed on the Forum, Bankers Life and Casualty had a short term care and long term care policy available. If still avail I would place the STC which was field underwritten and then apply for the LTC. At 80 you are certainly looking at somewhere near $1000 per month but it was available to 85. I think the STC had a cut-off at 80

 

[Mr_Ed]

My prospect could potentially qualify with one carrier prior to age 80, but has had one recent condition that requires a 6 month postpone, then the prospect will be over the carrier's issue age.

The policy is needed to preserve assets for the spouse who is not already in a nursing home and in a spend down situation. Non traditional life and annuity options most likely won't help here. The idea from the planner is to try to save assets for the spouse not institutionalized.

If you'd like help placing this case, you'll need to tell us about his/her health history.

 

[ltcadviser]

Yes, Fed Up is accurate. Bankers Life.

 

[TheAnnuityExpert]

Will the client be 80 after the 6 months? As long you issue the policy prior the last day of the 80th year, you could look at a LTC annuity.

They are not typical annuities, but niche annuities, and there are a few options.

I wrote a guide about it.

 

[ltcadviser]

Will the client be 80 after the 6 months? As long you issue the policy prior the last day of the 80th year, you could look at a LTC annuity.

They are not typical annuities, but niche annuities, and there are a few options.

I wrote a guide about it.

The OP asked about traditional LTC. Not LTC annuities.

Last day of 80th year? Really? LTC annuities are issued to age 84. There are other (better) annuity products outside of Global Atlantic ForeCare.

OneAmerica is one company that offers good LTC annuities for these older ages 80-84.

But, you would know this. Since you wrote a guide. Oh wait. Maybe you (TheAnnuityExpert) did not know this?

 

[fed up]

Will the client be 80 after the 6 months? As long you issue the policy prior the last day of the 80th year, you could look at a LTC annuity.

They are not typical annuities, but niche annuities, and there are a few options.

I wrote a guide about it.

If I can qualify an 80 year old for a standard LTC policy at 1000 per month based on benefits and that person can cover some or all of the premium out of income, why on earth would I ask the client to sink 100K into an annuity and have no access to their money unless it is used as LTC benfits. Seems like this advice benefits the LTC expert advisor because of the commission pay out but is not the best solution for the client and his/her money. Also most LTC traditional policies stop premiums as soon as the benefits kick in. My scenario they keep what assets they have and protect with a LTC policy where premiums stop at need or death. Your scenario their assets are gone on day 1 and they only benefit if the need arises

 

[TheAnnuityExpert]

Hi fed up,

I was under the impression that the client would be utilizing LTC not possibly utilizing LTC.

As far as the assets go, yes you are in a contract, but there is liquidity, and whatever left is in the account at death passes onto heirs in a lump sum. The assets don't just disappear.

If you put $1,000 a month into a standard LTC policy will that money pass onto heirs, or is a "use it or lose it" type of situation?

 

[fed up]

Hi fed up,

I was under the impression that the client would be utilizing LTC not possibly utilizing LTC.

As far as the assets go, yes you are in a contract, but there is liquidity, and whatever left is in the account at death passes onto heirs in a lump sum. The assets don't just disappear.

If you put $1,000 a month into a standard LTC policy will that money pass onto heirs, or is a "use it or lose it" type of situation?

As is the case of most insurance, the policy is a use it or lose it situation. If I never make a claim on my homeowners policy have I wasted the premium I paid? In the OP I would secure the asset if it is not needed to pay for the policy or utilize it to pay monthly premiums but not tie up the total assets of the insured. I watched an attorney and CPA advisor talk my father in law out of a LTC policy which he could qualify for and had the income to afford by saying he had the assets. 2008-2009 came along and made a huge dent in those assets when stocks tumbled. We spent over 300K of what was left of those assets on LTC before he died when his policy would have paid the LTC in-house nursing he required. 5 years of an EXPERT's advice would have cost less than 60K in premium for 300K in benefit if the policy had been accepted, but in reality cost 300K of his assets because, in the words of the expert, insurance agents are only after your money

 

[ltcadviser]

Hi fed up,

I was under the impression that the client would be utilizing LTC not possibly utilizing LTC.

Then, the traditional policy IS better than the annuity contract, IF the insured can get the traditional policy contract to be issued. Which at age 80 is certainly going to be difficult.