Hybrid Life/LTC Policy Question?

Sep 11, 2015

  1. term2u
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    term2u Expert

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    Hi there,

    I have a client who is looking for a hybrid life/LTC policy that her financial advisor has recommended. She is looking to dump in $100k (lump sum), which would provide LTC benefits, along with a permanent death benefit as well. She's in great health and she should easily be able to qualify for Preferred rates.

    I have already gotten a quote for Genworth's TLC (Total Living Coverage) and have included all of the specs below. Please let me know if someone can recommend any other carriers that I should be looking at, as I want to make sure that I'm getting her the best value. I've also heard that Lincoln Money Guard is probably another good option and will be contacting them today, but any help would be greatly appreciated.

    Thanks!

    Prepared for: Ms. Valued Client
    Initial Premium: $100,000.00
    Initial Death Benefit: $209,477
    Initial LTCI Lifetime Maximum Benefit: $440,235
    Initial Specified Amount: $146,745
    Sex/Age: Female / 68
    Premium Class:
    Life: Preferred No Nicotine Use
    Long Term Care Riders: 15% Preferred Discount
    Riders Included:
    Guaranteed Minimum Benefit Rider (GMBR)
    Accelerated Benefit Rider for Long Term Care Services (ABR) - 24 months
    Extension of Benefits Rider for Long Term Care Services (EBR) - 48 months
    Return of Premium Rider (ROP)
     
    term2u, Sep 11, 2015
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  2. GreenSky
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    GreenSky Guru

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    I can recommend you contact Tahoe Ray. It's clear that you (like me) don't do much LTC. You should work with an expert.

    Rick
     
    GreenSky, Sep 11, 2015
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  3. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    I would second this. Ray knows what he is doing, especially with these hybrids. I also suggest you look at State Life as far as products go.
     
    scagnt83, Sep 11, 2015
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  4. cowgoesMoO
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    cowgoesMoO Super Genius

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    Not sure what state you're in. But I know in Florida there is a LTC partnership program, which protects a clients assets up to the amount they insure themselves, but only certain policies qualify, I belive they need to have an inflation rider among other things.

    Not sure if a hybrid policy would qualify, might have to be a stand alone.

    Again not sure, but if her state has a partnership program, you need to make sure to get a policy that will qualify since it sounds like she has assets.
     
  5. GreenSky
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    GreenSky Guru

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    I recognize what you write as English, but none of this has anything to do with the question. You make "I don't know for sure" statements that are certainly from someone who doesn't know.

    Rick
     
    GreenSky, Sep 11, 2015
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  6. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    The hybrid policies as far as I know do not qualify for LTCI partnership programs.

    The partnership programs are really a last resort type of scenario. Imo, the clients that benefit from it are not the ones with large amounts of assets, because it is extremely unlikely that they will ever use Medicaid. It is the people who have a modest amount of assets that benefit from the program, since they are more likely to exhaust their assets and utilize Medicaid.

    Generally speaking, someone who has $100k to dump into a hybrid policy has more than just a modest amount of assets. People with modest assets buy traditional LTCI because they need the lump sum assets to create an income stream. So they need monthly or yearly payments.
     
    scagnt83, Sep 11, 2015
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  7. pcbinsurance
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  8. term2u
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    term2u Expert

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    Perfect - thanks a lot! I will reach out to Ray and see what he says. I also completely forgot about State Life's product as well. It's funny, as I usually mention State Life's product when completing life policy reviews, but I completely spaced. I think the thing that always confuses me about State Life's product is how they $100k goes to fund a SPIA, which then pays the premiums on a WL policy, through the Pension Protection Act provision - It's a bit hard for the client to grasp.

    Thanks again for the advice - It's always good to be able to turn to more knowledgeable pros out there, so I appreciate it!
     
    term2u, Sep 12, 2015
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  9. Arthur Rudnick
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    Arthur Rudnick Moderator Moderator

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    originally posted by scagnt83

    Correct, because hybrid policy are not LTC policies. They are a life insurance policy with a LTC rider.
     
  10. Mr_Ed
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    Mr_Ed Guru

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    Tell her to keep the $100K in a safe investment and use the return on the investment to buy a good, traditional LTCi policy.

    ;)
     
    Mr_Ed, Sep 13, 2015
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