Help with LTC policy

Feb 25, 2008

  1. JDB
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    JDB New Member

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    I write individual health & have recently had a client ask me to review a quote for LTC. I don't know the first thing about LTC, so any help is appreciated.

    here's the info I have:

    John Hancock Leading Edge
    UW class: select
    benefit type: monthly
    daily benefit: n/a
    monthly benefit: $1900
    benefit period: 3 yrs
    home care daily beneftit: 100%
    elimination period: 100 days
    inflation protection: auto cpi
    nonforfeiture: contingent
    waiver of HHC EP: yes
    shared care: no
    partner discount: none
    family discount: no
    group discount: 5%
    paymnet option: lifetime

    $98.37 per month
     
    JDB, Feb 25, 2008
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  2. Newby
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    The monthly benefit is WAY low. You need to call a few nursing homes in your area to see what the current daily rates are. Should be around $175-$225 per day which would mean a monthly benefit of $5,000 would be the lowest unless they plan to only partially fund.

    Auto cpi isn't clear to me. Is that automatic compounding inflation protection? It's good if it is. 5% is best. 3% is less desirable but OK if they are 65 or older when they buy the policy.

    I would say the agent is lowballing them with the $1,900 monthly benefit. The benefit type:monthly is not as good as daily.

    I would also make sure they know what 100-days elimination period means. It means if they qualified for LTC today, they will pay $17,500 before they will get any benefits paid. Long elimination is good if they understand it and do it to reduce premium costs (like large deductibles) but it is bad if the agent is just lowballing and not giving them the choices to make.

    My advice would be for YOU to partner up with someone in your town who does LTC and split it with them and learn from this one. If your state has a Partnership Program, make sure that is offered also because it is a HUGE benefit that doesn't cost anything extra.
     
    Newby, Feb 25, 2008
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  3. JDB
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    JDB New Member

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    Thanks for the info.
    Any ideas how to find an LTC agent? I am just thinking about finding a lead website, plug in some info & wait for an agent to call back.
    Thoughts?
     
    JDB, Feb 25, 2008
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  4. Newby
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    Newby, Feb 25, 2008
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  5. James
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    James Guru

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    Are you appointed with John Hancock for LTCi?
     
    James, Feb 26, 2008
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  6. JDB
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    JDB New Member

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    I'm not contracted anywhere for LTC.
     
    JDB, Feb 26, 2008
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  7. James
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    James Guru

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    Many experts of LTCi is suggesting to stay with JH Custom Care II, better level of benefits, including 5% inflation protection and unlimited benefits unlike their new Leading Edge product.

    Ps, I think Newby's advice to find an experience LTCi producer would be best.
     
    James, Feb 26, 2008
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  8. Insurance Phoenix
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    Insurance Phoenix Super Genius

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    I partner with a MetLife agent because they compare their plans with any plan with any other company. I just did that a month ago and the agent wrote a case with a commission of nearly three grand. Consider that approach.
    Phoenix Life Insurance / Arizona Life Insurance / Arizona Long Term
    Arizona Long Term Care Insurance
     
  9. Newby
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    Met Life is also very strong with % of claims that are approved and history of premium increases.

    I also like all the information that prints out with their quote. It's easy o present all their options side by side.
     
    Newby, Feb 26, 2008
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  10. James
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    James Guru

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    Nothing wrong with Met for LTCi! Outside of the fact that their programs they send me never work or I can not get it to work?
     
    James, Feb 27, 2008
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