Hybrid Life/LTC Policy Question?

[term2u]

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)

 

[GreenSky]

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

 

[scagnt83]

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

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.

 

[cowgoesMoO]

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.

 

[GreenSky]

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.

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

 

[scagnt83]

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.

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.

 

[pcbinsurance]

I would contact Jack, a valued Forum member:

Long Term Care Insurance Reviews, Ratings, Quotes & Expert Advice - LTC Partner

 

[term2u]

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.

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!

 

[Arthur Rudnick]

originally posted by scagnt83

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

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

 

[Mr_Ed]

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)

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