Closing Leads for LTCi

[jb60]

I'm fairly new to the LTC world, and I'd like to know which carriers have a refund of premium option on their LTCi.

Seems to me the linked benefit policies are most useful in getting over the objection of "what if I don't need it." If I had a refund of premium option, that would probably do the trick, unless of course they already have funds socked away in a life policy we can just 1035 over.

That said, I just ran a comparison between a "silver bullet" plan and a standard CA Partnership plan. After 30 years, the policy premium would amount to $117,315 and would amass a pool of funds of $1,277K in benefits versus a 100K "silver bullet" which would have amassed a similar $1,040K in benefits. So you get 23% more benefits for 17% more cost. I think that's fairly insignificant in terms of the differential. I didn't do anything about use of funds, but I don't think that most people would do much with the funds, or even think that way at all, so I'm not sure if its important.

Thanks,
jb

 

[secondcreek]

I believe Prudential and Mutual of Omaha/United of Omaha have ROP...

One thing about the linked products--do they offer an inflation rider? Telling someone they have a $7,000 monthly benefit sounds great today but what about in 15 years when the cost has doubled to $14,000?

If their benefit is half of what they need and they have tied up all of their savings in the initial premium deposit, aren't you just compounding their problem?

 

[yankee466]

I'm fairly new to the LTC world, and I'd like to know which carriers have a refund of premium option on their LTCi.

Seems to me the linked benefit policies are most useful in getting over the objection of "what if I don't need it." If I had a refund of premium option, that would probably do the trick, unless of course they already have funds socked away in a life policy we can just 1035 over.

That said, I just ran a comparison between a "silver bullet" plan and a standard CA Partnership plan. After 30 years, the policy premium would amount to $117,315 and would amass a pool of funds of $1,277K in benefits versus a 100K "silver bullet" which would have amassed a similar $1,040K in benefits. So you get 23% more benefits for 17% more cost. I think that's fairly insignificant in terms of the differential. I didn't do anything about use of funds, but I don't think that most people would do much with the funds, or even think that way at all, so I'm not sure if its important.

Thanks,
jb

There were/are a few carriers that had a rider that offered to refund a percentage (80%?) of your premium paid if you changed your mind...meaning you did not have to die to collect. Assurity offered it. I saw it elsewhere too, and it was maybe NWM or MM, but not positive. With Assurity, it was not a hugely expensive rider.

Else, just about everyone offers some form or RoP, with or without "less claims"

 

[billberry12]

Genworth has two ROP options. Graded ROP refunds 100% of premium paid if insured dies before age 65 and it is graded 90 -80-70 after age 65 to age 75. Great benefit for someone 55-60 and it really is an inexpensive option. They also offer full return of premium, but it costs more. It refunds 100% of premium if you die never having used your policy. Hope this helps.
Bill

 

[Mr_Ed]

Genworth has two ROP options. Graded ROP refunds 100% of premium paid if insured dies before age 65 and it is graded 90 -80-70 after age 65 to age 75. Great benefit for someone 55-60 and it really is an inexpensive option. They also offer full return of premium, but it costs more. It refunds 100% of premium if you die never having used your policy. Hope this helps.
Bill

I wish it stopped at a 70% refund, Bill.

Unfortunately, it keeps going down by 10% every year until it hits 0% at age 75.

 

[billberry12]

Yes. I intended for the reader to figure that out. Sorry.