IMO. Let me know if you want them.
IMO. Let me know if you want them.
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- #12
How much are the premiums and what kind of lump sum are you working with?
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- #14
Still waiting on LTC premium quote, but I believe it will be $6000/yr for husband/wife.
Client is looking for LTC coverage, but is weighing pros and cons of using capital now vs waiting and paying via self-insuring.
Client recognizes and is planning for $81/yr for 3 years for both by year 2040.
I've shown Forecare Annuity and Mass ' s Care Choice One using $125k x 2 to have separate policies.
They are hesitant because of loss of opportunity cost via this plan.
I'm thinking maybe we can address concerns if plan preserves capital while funding LTC.
Client is looking for LTC coverage, but is weighing pros and cons of using capital now vs waiting and paying via self-insuring.
Client recognizes and is planning for $81/yr for 3 years for both by year 2040.
I've shown Forecare Annuity and Mass ' s Care Choice One using $125k x 2 to have separate policies.
They are hesitant because of loss of opportunity cost via this plan.
I'm thinking maybe we can address concerns if plan preserves capital while funding LTC.
- 10,704
Try a mass 10 pay with the LTCR rider. Positive growth around year 10-15. Increasing benefit with dividends. It provides the best combo of LTCI and RoR
The problem with all of those products (you should also throw State Life/OneAmerica into your product mix...) is that you're still partially self insuring. That's fine for some clients and not acceptable for others. If you end up needing care, the majority if not all of your initial deposit will be gone very quickly.
Using your strategy (fixed annuity paying for traditional LTC) they get an LTC policy AND still have their lump sum; regardless of whether they actually receive care. At 3.4% (assuming 250k lump sum), they'd probably even have enough left over to purchase another 250k of SUL....
You could also look at a SPIA. It would probably only run them 150k to get that 8500/yr (3.4% of 250k...w/ a Cash Refund). That would cover both the LTC and an SUL. You could then buy an FIA with some upside (but less guarantees) with the remaining 100k.
With that strategy, if they both died immediately, their benes would get 500k. If they were both dead by year 20, their benes would get 515k (assuming that the 100k that you put into the FIA grew at 5% with no w/ds)...this would be regardless of whether or not they used the LTC.
There are lots of ways to look at this. Most of it will come down to what the client is most comfortable with...good luck! It could be a nice case.
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- #17
- 2,045
The one that I ran paid for joint life and had a cash refund - any initial premium not used is refunded to a beneficiary (based on a 62yo couple...I didn't see an age in your posts....i might have missed that)
I use the survivorship UL to refund premiums paid to the SPIA and LTC. I normally show it to compare/compete with asset based LTC products. It isn't required but can be a nice add on.
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- #20
