Decline rates rising for LTCI applicants under 70; stable (but high) for those over 70
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It doesn't matter if it's an SPWL, SPUL, SPGUL, SPIUL, SPXYZ...
It's the SP that's the problem.
The opportunity cost is HUGE!
With my plan they can keep their $200,000.
And they're not having to pay a $100,000 deductible per spouse.
- 1,926
As I understand the life policy they don't offer any inflation protection, is that accurate?
That's a very specific question, Bluemarlin. I'm not so sure scagent will want to be that specific. He can't tell us too much about this policy, because we just wouldn't really understand it. Only he can understand this policy and the few consumers with whom he's willing to share this special knowledge.
- 10,806
It depends. A GUL would not. A WL would.
As far as true Hybrid LTCI goes, it used to be an option on most, I think it still is.
- 10,806
It is not just 1 specific policy, there are many options out there, WL/GUL/IUL. I have already given a partial list of carriers.
- 10,806
None of that is accurate.
- 1,926
Thanks for the reply. Just for kicks what about rates for a 62 year old female looking for 6000 monthly benefit with inflation for Tennessee.
It is accurate, but it doesn't fit your narrative.
The truth is that your plan is GREAT if they never need long-term care.
If they do need long-term care, they essentially have a policy with a $100,000 deductible PER SPOUSE.
With my plan they can keep their $200,000 invested. They can allocate only 2% of the return each year to pay their LTCi premium and they can reinvest the rest of the return. If they need care, they don't have to pay a $100,000 deductible per spouse.
Plus, if they want to use their $100,000 in cash, they don't have to pay any surrender charges.
Plus, if they want to use their $100,000 in cash, they don't lose their long-term care benefits (or pay an ins. co. interest for borrowing their own money.)
Permanent life insurance policies, especially the single premium policies, are rarely the best way to plan for long-term care.
Look, hybrids are Swiss army knives. They do a lot of things but they don't do anything particularly well. They are really cool. But, if you need to cut something, you're going to find a real knife. If you are going to wrap a birthday gift, you're not going to pull out that little Swiss army scissor are you? You're going to get a real pair of scissors.
Which is more important when buying insurance:
What it pays if you need it?
Or what it pays if you don't?
"Use it or lose it" isn't a flaw in traditional LTC insurance, it's a FEATURE!
... because you are not paying extra for benefits you don't need!
P.S. Yes, you'll make about three times the commission selling $200,000 of single premium hybrid than I will make selling the same couple a $4,000 annual LTCi premium. Good for you.
P.P.S. I do have one advantage over you. My market is huge. Yours is very small. There are not a lot of people flush enough to plunk down $100K per spouse for a swiss army knife. There aren't a lot of people dumb enough to plunk down $100K per spouse for a swiss army knife. There are millions of people who need affordable long-term care insurance, especially long-term care partnership programs. You'll make a lot more money per sale, but I'll help a lot more people.
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Oy Vey
