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And how much do they currently have in life insurance, and what do they pay for it?
Decline rates rising for LTCI applicants under 70; stable (but high) for those over 70
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And how much do they currently have in life insurance, and what do they pay for it?
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NGL?
NGL. We can do a 10pay for about $8K per year.
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Because it is life insurance we are talking about. It goes to the positioning aspect I spoke of. You cant sell someone life insurance without knowing if they already have life insurance, and how much they pay for it. And you cant make a proper recommendation without that knowledge either.
For a situation such as that, at that age, I would most likely look at transferring a portion of their assets over to a WL or IUL with a LTC Rider. But it would likely replace a portion of their existing life insurance coverage. And how much to contribute would depend on a variety of factors.
It will kill 3 birds with 1 stone so to speak. Grow the money, provide LTC Protection, & also provide a Death Benefit. It is not a "use it or lose it" situation, and people like that. It does the same as "Hybrid LTCI Plans", just better.
Or, they could go with a GUL that offers ROP, LTC Benefits, & the option to receive the DB as retirement income if you no longer see the need for the policy. But at their age and position, it likely makes more sense to go with a product that has a liquid Cash Value they can access.
And yes, it would cover home care. And no, it would not require permanent impairment to pay benefits. Again, you have to know how to properly position it. Which requires the correct fact finding.
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The real sweet spot for these policies are people in their 40s and early 50s. Which is why I predict that the average age of getting insured for LTC will drop over the next decade.
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What will their total LTC premiums be over the course of their life?
What is the product allocation of their assets?
Since you mentioned staying at home is extremely important to them, are your clients comfortable with the NGL requirement that they have to access home care by and through a home care agency?
(Just curious)
Question: What will their total LTC premiums be over the course of their life?
Answer: It depends upon when they start to need care. If we do a 10-pay then their total LTCi premiums will be about $89,000 unless they need to file a claim within 10 years.
What is the product allocation of their assets?
"Product allocation?" I assume you mean "asset allocation". With the recent market gains, right now about 90% of their investments are in equities--mostly large cap dividend-paying stocks in retirement accounts.
The rest is in cash holdings: money market, a few small C.D.'s, checking and savings, etc...
Will you need to know his shoe size, too?
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No, I meant product allocation... as in financial products.
Your questions show that you do not understand how to properly position the product. It is more than just a normal LTCI sale, especially for someone that old with a large amount of assets.
As I suspected, you dont understand the product. Thats ok, consumers do!
And the correct answer to my first question, is that they have no clue how much they will pay in premiums over their lifetime. You have said yourself you dont sell short pay policies. And no way those rates are staying level.
The life insurance option is exactly that, an option. Many consumers prefer it because its not a 1 trick pony. But imo, it is going to take over the LTCI industry. Life agents are already insuring people in their 40s (for LTCI) on a regular basis. That will hurt traditional LTCI sales over the next decade big time.
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