Benefit Period Discuss - Lifetime?

[crimsontideagent]

What do you guys feel about benefit periods? Lifetime or 3,5,6,10 year periods...

Is there a standard you go by or do you just determine if they can pay for it, do lifetime?

I'm in a Partnership qualified state btw...

 

[Mr_Ed]

What do you guys feel about benefit periods? Lifetime or 3,5,6,10 year periods...

Is there a standard you go by or do you just determine if they can pay for it, do lifetime?

I'm in a Partnership qualified state btw...

Here's something I recently posted on a consumer forum about designing your LTCi policy. You may find it helpful.



Buy a policy that meets the federal guidelines, that's called a "tax-qualified policy."

Buy a policy that meets your state's guidelines, that's called a "Partnership-qualified policy."

Buy a Daily Benefit that is high enough to cover most of the cost of care in your area.

If home healthcare is important to you, make sure the policy allows for all of the Daily Benefit to be used for care at home.

As a general rule, buy a policy that has a "Maximum Lifetime Benefit" that is equal to your net worth.

If you are healthy, you should probably purchase a policy on your own, rather than through your employer.

 

[yankee466]

What do you guys feel about benefit periods? Lifetime or 3,5,6,10 year periods...

Is there a standard you go by or do you just determine if they can pay for it, do lifetime?

I'm in a Partnership qualified state btw...

I would suggest you start by focusing on the proper daily benefit amount. What good is a $100/day lifetime plan when a man enters a nursing home costing $200/day and dies 3 years later? He may go broke in the three years he has the "lifetime" plan.

Keep in mind too that talking about how many years a plan will last is actually pretty useless.......as the plan will last until the money runs out. In my example, a $200/day 3 year plan will last for 6 years if you only spend it at $100/day.

Lifetime is of course nice, but with the spiraling costs of LTC, and the fact that the average time on claim in a facility is about 3 years, the costs of lifetime and 5% compound, etc is rapidly getting out of reach for many.

The ultimate plan you sell depends 100% on that particular client situation.
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Here is an except from the recent Hancock announcement on product changes....keeping in mind that they are the #2 LTC carrier overall in the country.

Effective June 7, 2010, we will eliminate the Lifetime (unlimited) benefit option on Custom Care II Enhanced in all states.
Less than 4% of policies sold today include the Lifetime benefit period.