Decline rates rising for LTCI applicants under 70; stable (but high) for those over 70

[Mr_Ed]

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.

So what would you recommend for this couple?
Are you going to just speak in generalities or will you get into specifics?
You won't speak in specifics because you know it doesn't make sense for this couple to own a hybrid.

57-years old is NOT old. The average long-term care insurance policy is purchased at age 59. You said that hybrids are better. If a hybrid is not better for a typical buyer of long-term care insurance, then just admit and stop your charade.

Or, provide some details:
How much premium will your solution be?
How much death benefit will they get?
How much in long-term care benefit will they get?
Will the policy have a chronic illness rider or a 7702(b) rider?


P.S. Hybrids ARE a one-trick pony. In the end they will only do one thing for the policyholder. Hybrids are like Swiss army knives. They do a lot of things but they don't do any of them very well.

Hybrid Policies Have Pitfalls No One is Talking About

 

[scagnt83]

So what would you recommend for this couple?
Are you going to just speak in generalities or will you get into specifics?

Im not ignoring anything. This type of sale is an asset transfer sale. It is using existing assets to leverage a LTC Benefit. The recommendation is dependent on the makeup of their current assets.

57-years old is NOT old. The average long-term care insurance policy is purchased at age 59. You said that hybrids are better. If a hybrid is not better for a typical buyer of long-term care insurance, then just admit and stop your charade.

You are again ignoring what I said and trying to twist my words. I realize you have an agenda, but this is beneath you.


I said that Life Insurance with a LTC Rider is the wave of the future.

I also said that the average age of insureds is going to drop dramatically over the next decade because of this.

 

[scagnt83]

Or, provide some details:
How much premium will your solution be?
How much death benefit will they get?
How much in long-term care benefit will they get?
Will the policy have a chronic illness rider or a 7702(b) rider?

I have already given details, you ignored them.

They could likely do a single premium of around $100k each to get around $750k in LTC benefits.

Cash Value would grow around 2%-3%.

Death Benefit would be slightly over the LTC benefit.

7702(b)

P.S. Hybrids ARE a one-trick pony. In the end they will only do one thing for the policyholder. Hybrids are like Swiss army knives. They do a lot of things but they don't do any of them very well.

Again, for a second time, I am not talking about "Hybrid LTC Policies". I am talking about true life insurance such as a Mass 10pay, or Guardian 10pay, or Midland, or Protective, or AG or Pru or Nationwide.


I agree that "Hybride LTC" (MoneyGuard type of products) are not great at doing anything. That is why I have never sold one. But they are very different than a true Life Policy with a LTC Rider.

 

[Mr_Ed]

I have already given details, you ignored them.

They could likely do a single premium of around $100k each to get around $750k in LTC benefits.

Cash Value would grow around 2%-3%.

Death Benefit would be slightly over the LTC benefit.

7702(b)




Again, for a second time, I am not talking about "Hybrid LTC Policies". I am talking about true life insurance such as a Mass 10pay, or Guardian 10pay, or Midland, or Protective, or AG or Pru or Nationwide.

And this is better than a tradtional LTCi policy because......???????

 

[scagnt83]

And this is better than a tradtional LTCi policy because......???????

Ive already stated the benefits. If you cant figure it out that is on you. Consumers understand the benefits perfectly.

From a business perspective, you are missing out on a very big opportunity in the market.

 

[Mr_Ed]

Ive already stated the benefits. If you cant figure it out that is on you. Consumers understand the benefits perfectly.

From a business perspective, you are missing out on a very big opportunity in the market.

You've already stated the benefits?
Is that really the best you can do?

Here's just a few of the reasons why your plan is a lot worse than traditional long-term care insurance:

NEVER* Combine Long-Term Care Insurance with Life Insurance – LTCShop.com

 

[scagnt83]

You've already stated the benefits?
Is that really the best you can do?

Here's just a few of the reasons why your plan is a lot worse than traditional long-term care insurance:

That "article" is a nice sales pitch. But has few actual facts. It is disingenuous at best... more like misleading and selectively omitting info. And I actually agree with you that Hybrid LTC Policies are not a great deal.


But, that article is talking about a different product than what I am talking about. You still dont get that....

 

[Mr_Ed]

That "article" is a nice sales pitch. But has few actual facts. It is disingenuous at best... more like misleading and selectively omitting info. And I actually agree with you that Hybrid LTC Policies are not a great deal.


But, that article is talking about a different product than what I am talking about. You still dont get that....

The product(s) you're talking about are single-premium whole life with 7702(b) TQ LTCi riders, right?

 

[scagnt83]

Here is an actual unbiased article that compares Traditional LTCI to Hybrid LTCI:

New Hybrid Long Term Care Insurance Policies Are Risk Free - LTC Partner

 

[scagnt83]

The product(s) you're talking about are single-premium whole life with 7702(b) TQ LTCi riders, right?

Nope