Hancock UL W/ LTCi Rider- Good/Bad?

Discussion in 'Long Term Care Insurance Forum' started by Medigap Bill, Jun 1, 2017.

  1. Tahoe Ray
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    Tahoe Ray Well-Known Member

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    Jh is guaranteed through life expectancy so at that age, probably late 70s.

    It is a true LTC rider (7702b).
     
  2. Mr_Ed
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    Mr_Ed Well-Known Member

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    so at age 80 she'll either have a huge increase in premium OR she'll have to cut her benefits big time or she'll lapse the policy and lose everything.

    why would anyone want to buy a policy like that?
     
  3. Tahoe Ray
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    Tahoe Ray Well-Known Member

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    You asked guaranteed. That would assume that they max COIs and reduce the interest rate to the min the day she buys it.

    Non-guaranteed goes 125ish...

    The outcome is likely in the middle. The JH policy looks a lot better overfunded... but then you're in ACIV premium territory anyway.

    BTW, I agree that for a couple, ACIV is a better solution if LTC is your primary objective (and you want a hybrid).
     
  4. CALTCAgent
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    CALTCAgent Well-Known Member

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    It would be so much easier to really compare these plans with 2 illustrations and have all the numbers.
     
    Last edited: Jun 2, 2017
  5. Mr_Ed
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    Mr_Ed Well-Known Member

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    the only reason to buy ac4 is if LTC is your primary objective.
     
  6. Tahoe Ray
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    Tahoe Ray Well-Known Member

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    Correct .
     
  7. ltcadviser
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    ltcadviser Well-Known Member

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    We are not stopping you.

    ----------

    Because it is sold.
     
  8. CALTCAgent
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    CALTCAgent Well-Known Member

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    OK, if someone does the Hancock, I'll do the AC 4.
     
  9. Tahoe Ray
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    Tahoe Ray Well-Known Member

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    How much do all of us have the potential to make for running these illustrations?
     
  10. ltcadviser
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    ltcadviser Well-Known Member

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    It's a current assumption UL.

    $4600 annual premium is too low to carry the policy. At age 87, internal rate of return on a $4600 premium for $1,000,000 db is 9.03%.

    Policy funding will need to be much higher.

    Need $11000 year premium at 5% IRR to fund $1,000,000 DB at age 87.

    Pay now or pay much more later.
     

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