Holy Genworth Rates!

[ltcadviser]

Mr. Ed you are a funny guy ! 100K renewals ha ha

What's so funny troll clown? Mr. Ed (among many others here) has a six figure renewal trail.

Comedy pays well.

 

[Mr_Ed]

What's so funny troll clown? Mr. Ed (among many others here) has a six figure renewal trail.

Comedy pays well.

all from LTCi!

 

[ltcadviser]

all from LTCi!

:

And it is the gift that keeps on giving when rates are increased.

 

[scagnt83]

So, they could fund the traditional policy for 2.5% of principal and assume rate increase risk on the traditional policy; or buy the hybrid and assume rising interest rate risk; inflationary risk etc.

That is why you leave a bit of cushion for rate increases. Not only does the interest give you cushion, but the annuity will gain in value and will create an ever higher yearly dollar return (unless rate increases match it eventually). So you actually do not assume rate increase risk if it is done correctly.... you also make 2 sales instead of one....

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why not just do a 1035 exchange each year between the spda and the ltci policy then you don't have to worry about the 59.5 rule--assuming the annuity company will follow the PPA and not issue a 1099 for the gain and re-calculate the cost basis appropriately.

Damn. I suddenly feel stupid.

 

[Mr_Ed]

Mr. Ed you are a funny guy ! 100K renewals ha ha

it doesn't take much in ltci sales over a 10 year period, to generate a six figure renewal income since ltci persistency is about 99%!