Creating your own "hybrid" LTC policy

Aug 22, 2018

  1. JJ2713
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    JJ2713 Guru

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    Has anyone thought about or even actually created their own "hybrid" LTC policy for a client?

    You would need a regular LTC policy and a GUL policy (to at least age 100) to cover at least the principal. If it's a lump sum premium payment, then you know how much the GUL needs to cover. If the client is paying monthly, then I guess cover at least 20-25 years worth of premium.

    The point is to get back the principal if they don't use the LTC policy. That's the same principal with the hybrids.

    It would work best if the regular LTC policy didn't have any rate increase in the future.

    I haven't run the numbers. However, if the numbers are better than a combined hybrid, then shouldn't this be an option as well? Assuming the client can get the GUL policy of course.
     
    JJ2713, Aug 22, 2018
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  2. ltcadviser
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    ltcadviser Guru

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    Therein lies your issue.
     
  3. JJ2713
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    As you recommended in the other thread... perhaps run the numbers using National Guardian Life single pay and a GUL and see if they beat a hybrid with the same benefits.
     
    JJ2713, Aug 22, 2018
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  4. ltcadviser
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    ltcadviser Guru

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    Have you seen NGL’s single pay rates?

    Anyway, you are overthinking long term care insurance.

    Stop over analyzing and start producing.

    Thank me later.
     
  5. VolAgent
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    VolAgent Guru

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    Are you and Tom related by chance?
     
    VolAgent, Aug 22, 2018
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  6. WinoBlues
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  7. WinoBlues
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    You know I was wondering the same thing.
     
  8. Barbara S
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    Barbara S New Member

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    Consider using the NGL plan with one of their Limited Pay Riders. NGL also offers a Limited Return of Premium which - in essence - does the same thing as the hybrid. It returns all premium paid into the policy less any claims that have been paid out. There is also a FULL return of premium that returns all premium paid, regardless of any claims paid out. In my experience, if you compare apples-to-apples, NGL comes out looking very good against the hybrids - and you have the added benefits of the premiums being deductible to a business and the benefits being Partnership eligible. The only downside is the underwriting with NGL - it is notoriously stringent. But if you've got young healthy clients, it's hard to beat that product - especially with couples.
     
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