Goodbye Guardian

[Mr_Ed]

Nope, pretty sure it was a Male non-smoker that I ran.
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The problem is that you dont understand the consumer mindset.

People dont buy LTCI because they dont want to loose control of a major portion of their assets;
LTCI is a well understood need, but the need to keep control of their assets in case of emergency (or depletion of other assets) is very often a much greater factor in their decision making.

This is why people gravitate to MoneyGuard type products.
They can leverage their money to gain a much needed LTC benefit, and they get to keep control of their money, grow their money, and create an enhanced DB.



People dont care about ROP when they are fearful that the LTC premium will erode their retirement assets.

Also, with MoneyGuard, you get a residual DB even if you use up your LTC benefit.


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Statistically, is twice the benefit actually needed for the average LTC claim?

Is a minimum 7 year bucket of money not enough to cover most LTC claims??
If I remember correctly the average LTC claim lasts about 4 years.

An $800k+ bucket of money at age 75 is nothing to turn your nose up at either way. Especially when you still have control of MORE than what you paid into the policy.

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Its funny how Health agents who are supposedly trained in the insurance field dont understand very simple combo products; but clients with no insurance or financial training whatsoever have no problem understanding it at all when it is properly explained to them.....

The 10 year old grandson of a client of mine sat in on a MoneyGuard presentation a few months ago.
The 10 year old was able to understand the product....
It baffles me that an insurance agent claims this is a complicated product.

An HSA is more complicated than MoneyGuard.

But of course to understand it you would actually have to take the time to properly learn about the product.


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I totally agree with this statement.
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I used MoneyGuard as an example, which I am a fan of. JH has a good product too.

I am yet to be convinced that true LI with a LTC rider is a good deal for the consumer (even though my JH wholesaler tries desperately to convince me).
But this is a different product than a MoneyGuard type product.

What's amazing is how much good press the LTC combo products get. Yet, the combo products make up a very small percentage of the business. The number of new traditional LTCi policies sold each year is, conservatively, about 15x as many Life/LTC combo policies that are sold.

Combo products are not the wave of the future.
They just don't offer enough value for the money.

 

[scagnt83]

What's amazing is how much good press the LTC combo products get. Yet, the combo products make up a very small percentage of the business. The number of new traditional LTCi policies sold each year is, conservatively, about 15x as many Life/LTC combo policies that are sold.
.

A new product on the market is never going to surpass an established product.
It will take years for that to happen (look at EIAs as an example; they still are not the top annuity sold, but they have been gaining ground consistently year after year. Just as MG type products have)

Biggest volume does not represent where an industry is headed. Its the area thats on the move that shows were an industry/sector is headed.

You have major carriers dropping out of traditional LTC, while combo product are becoming more and more popular.
It doesnt take a genius to do the math on that one.
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Combo products are not the wave of the future.
They just don't offer enough value for the money.

Again. You are not understanding the consumer mindset.

Who cares if you can get a bigger bang for your buck when that bang is going to erode your retirement assets?!!

Combo products are not for everyone, I am not trying to make them out to be a magic bullet.
But on that note, LTCI is not for everyone either.
But I will say that the majority of people who are in the income range to properly afford LTCI, will have assets built up that could be transfered to MG/AP.

Its an option that most people who do have the assets to put into it, are extremely interested in once they hear about it.




I recently made a MG sale to an Engineer/former CPA.
I had spoke with him multiple times about LTCI and he just had trouble contributing that much to LTC when he could be putting it into a retirement fund.
He also felt that he was "self insured" to a certain extent (he does have a good bit of assets built up). I showed how quickly a LTC claim would erode those assets, but he still wouldnt bite.

I recently came back to show him a way to "leverage" that "self insured" money and still keep control of it.

After seeing it he put twice what I had originally proposed into it.


The number one objection I hear about LTC is "what if I need that money to live on during retirement?" or "what if I dont need LTC but need the money?"

Again, its not a magic bullet. But its a very competitive product if used correctly.

 

[Mr_Ed]

A new product on the market is never going to surpass an established product.
It will take years for that to happen (look at EIAs as an example; they still are not the top annuity sold, but they have been gaining ground consistently year after year. Just as MG type products have)

Biggest volume does not represent where an industry is headed. Its the area thats on the move that shows were an industry/sector is headed.

You have major carriers dropping out of traditional LTC, while combo product are becoming more and more popular.
It doesnt take a genius to do the math on that one.
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Again. You are not understanding the consumer mindset.

Who cares if you can get a bigger bang for your buck when that bang is going to erode your retirement assets?!!

Combo products are not for everyone, I am not trying to make them out to be a magic bullet.
But on that note, LTCI is not for everyone either.
But I will say that the majority of people who are in the income range to properly afford LTCI, will have assets built up that could be transfered to MG/AP.

Its an option that most people who do have the assets to put into it, are extremely interested in once they hear about it.




I recently made a MG sale to an Engineer/former CPA.
I had spoke with him multiple times about LTCI and he just had trouble contributing that much to LTC when he could be putting it into a retirement fund.
He also felt that he was "self insured" to a certain extent (he does have a good bit of assets built up). I showed how quickly a LTC claim would erode those assets, but he still wouldnt bite.

I recently came back to show him a way to "leverage" that "self insured" money and still keep control of it.

After seeing it he put twice what I had originally proposed into it.


The number one objection I hear about LTC is "what if I need that money to live on during retirement?" or "what if I dont need LTC but need the money?"

Again, its not a magic bullet. But its a very competitive product if used correctly.

What kind of long-term care policy do you own?

 

[scagnt83]

What kind of long-term care policy do you own?

I am 28. So none yet.
Still working on retirement savings for myself and college savings for my kid at the moment.

I plan to purchase LTC protection (of some type) when I get into my 30s.

I should have assets to contribute to MG if I wish, but I also will consider doing a 10 pay traditional LTC.
But I do like the fact that I would keep control of assets with MG.


But I am not your usual LTCI prospect. Most are in their 50s.



I do not exclude traditional LTCI when speaking to clients.
I have sold plenty of it in the past, and still sell it to this day (I have a presentation for traditional LTCI next week)

But MG can be a good alternative for many prospects.
And I feel that there are some real uncertainties about rate increases and who will/wont be in business in the future when it comes to LTCI.
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Im guessing that you own traditional LTCI? .... lol


Seriously though. Do you mind sharing what your policy design is like and what company its with? What was your reasoning behind it?
Do you have a maxed out policy?

 

[Mr_Ed]

I am 28. So none yet.
Still working on retirement savings for myself and college savings for my kid at the moment.

I plan to purchase LTC protection (of some type) when I get into my 30s.

I should have assets to contribute to MG if I wish, but I also will consider doing a 10 pay traditional LTC.
But I do like the fact that I would keep control of assets with MG.


But I am not your usual LTCI prospect. Most are in their 50s.



I do not exclude traditional LTCI when speaking to clients.
I have sold plenty of it in the past, and still sell it to this day (I have a presentation for traditional LTCI next week)

But MG can be a good alternative for many prospects.
And I feel that there are some real uncertainties about rate increases and who will/wont be in business in the future when it comes to LTCI.
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Im guessing that you own traditional LTCI? .... lol


Seriously though. Do you mind sharing what your policy design is like and what company its with? What was your reasoning behind it?
Do you have a maxed out policy?

I own a $200 daily benefit, 10 years of shared benefits with my wife, no inflation benefit, and it pays an extra $1,000 per month cash benefit. It's with Allianz. I bought it the last day they sold that policy in my state.

 

[RichS]

Never knew Guardian was a player in the LTCI business anyway. Seems like the insurance industry keeps going through these LTCI purges every couple of years. Maybe it's a good thing.

 

[crimsontideagent]

Never knew Guardian was a player in the LTCI business anyway. Seems like the insurance industry keeps going through these LTCI purges every couple of years. Maybe it's a good thing.

They are SOLID LTC contract, one of the best out there. After speaking to a top GA w/ Guardian, I'm going to sell the crap out of it till they shut it down...

Why ? Think about it...

 

[Mr_Ed]

OK. SO...I'm thinking.......sorry.....not getting anything....please explain...

Bill,
I think he's hinting at the "fire sale" concept.
Scott

 

[fjman]

I thought their LTC product was pretty solid and I definately sold some of it. With so little on the books, I does make me wonder how I should revisit this with my Guardian clients.

Since they were only in the LTC game for a handful of years, makes me wonder if they will try to avoid rate increases since there isnt much biz on the books or if they will raise the hell outta them to try and drop some customers?

Their policies were a great buy when they first launched the product IMO...