I Have a Guy who wants LTC

[pdoyle]

I'm going to state up front... I'm not a LTC guy. I'm a life guy with limited experience the LTC sale.

I just got off the phone with a close friend of the family. He's wanting to see a "great long term care product... the kind fortune 500 guys have... not just a cheap LTC product". Maybe with cash buld up...
He doesn't have a large dump in... wants to pay annual.
I'm getting a Met "cash" product quote, John Hancock UL with LTC rider and the State Life 2nd to die product with LTC rider.

He and his wife are 50 and 49 in great health.

Is there anything I should know about out there?
Any advice would be greatly appreciated.
Thanks

 

[yankee466]

Re: I Have a Guy

I'm going to state up front... I'm not a LTC guy. I'm a life guy with limited experience the LTC sale.

I just got off the phone with a close friend of the family. He's wanting to see a "great long term care product... the kind fortune 500 guys have... not just a cheap LTC product". Maybe with cash buld up...
He doesn't have a large dump in... wants to pay annual.
I'm getting a Met "cash" product quote, John Hancock UL with LTC rider and the State Life 2nd to die product with LTC rider.

He and his wife are 50 and 49 in great health.

Is there anything I should know about out there?
Any advice would be greatly appreciated.
Thanks

Well....since you provide no financial info on the client, it is not possible to comment. However, does he need additional life insurance? Does he know that most Fortune 500 people probably have traditional LTC insurance, whereas as the Fortune 20 would likely do nothing as they are totally self funded. Else, they may consider a "linked benefit" plan such as an annuity/ltc combo or a life/LTC combo product of which you speak. Most of the linked benefit plans are single premium pay plans, but there are options for annual with some.

At their ages, the most cost effective way to build huge LTC benefits for not much money on an annual basis is a traditional LTC plan with a good inflation clause. It is likely cheaper to sell them a separate LTCi plan and a separate life plan with no LTC rider than it is to sell them a "one size fits all" plan. Just my humble opinion.....but without knowing your client, it is hard to say.

Maybe you should partner with a local LTC specialist who can better help you with your options?

 

[pdoyle]

Re: I Have a Guy

net worth is about 8 million.
400k annual income, 550 combined.
Has 5 million term inforce, 7 mill combined

 

[Mr_Ed]

Re: I Have a Guy

net worth is about 8 million.
400k annual income, 550 combined.
Has 5 million term inforce, 7 mill combined

Does he own his own business?
If so, is it set up as an S corp or a C corp?
Is the wife an employee of the business?

 

[Franz Kafka]

Re: I Have a Guy

I'm going to state up front... I'm not a LTC guy. I'm a life guy with limited experience the LTC sale.

I just got off the phone with a close friend of the family. He's wanting to see a "great long term care product... the kind fortune 500 guys have... not just a cheap LTC product". Maybe with cash buld up...
He doesn't have a large dump in... wants to pay annual.
I'm getting a Met "cash" product quote, John Hancock UL with LTC rider and the State Life 2nd to die product with LTC rider.

He and his wife are 50 and 49 in great health.

Is there anything I should know about out there?
Any advice would be greatly appreciated.
Thanks

At those ages, a limited pay with compound interest product can really give the bang for their buck. Mass offers full non-forfeiture rider that pays full ROP even if they use the benefit (figure that out). Like another poster said, if he owns a C-corp (and they're both employed) they can deduct the premiums, have the policy paid up in 10 years, use the benefits tax-free and get the premiums back when they die income tax free. Otherwise I'd show JH WL with the LTC rider. You'd be surprised how many wealthy prefer guaranteed non-par WL.

 

[dgoldenz]

Re: I Have a Guy

net worth is about 8 million.
400k annual income, 550 combined.
Has 5 million term inforce, 7 mill combined

Sounds like he could use a second-to-die policy for estate planning too.

 

[pdoyle]

Re: I Have a Guy

I'm running the Hancock UL product... Wow...
If they are going to pay 6 to 10k a year... why not get the life product and know the benefit will be paid one way or the other?

 

[yankee466]

Re: I Have a Guy

I'm running the Hancock UL product... Wow...
If they are going to pay 6 to 10k a year... why not get the life product and know the benefit will be paid one way or the other?

The answer only comes if you run an identical life product without the LTC rider and see what the cost difference is. You could even run a NLGUL if all you are selling is a death benefit. Then determine how many years does the LTC rider pay on the life combo plan, and what LTC funds will the combo policy have in 30 years? Then you will know which direction is the better value, and which option has more clever marketing material available.

 

[gettingstarted]

Re: I Have a Guy

You'd be surprised how many wealthy prefer guaranteed non-par WL.

Care to elaborate why you believe or know this to be true...? Just curious...

 

[Franz Kafka]

Re: I Have a Guy

Care to elaborate why you believe or know this to be true...? Just curious...

The more the money you have, the less the need for you to take chances. They don't get impressed by big numbers. They like the safety. Speaking in generalities of course.