Indexed Annuities with Good LTC Benefits?

[scagnt83]

You could generate more LTC income from the FIA (assuming 265K) at a typical "need age" (e.g. age 85) however, like inflation riders on the hybrid single pay ULs, there is a crossover point.

I think some IAs require the income stream to be turned on for a certain period before being eligible for the ltc enhancement.

 

[Tahoe Ray]

I think some IAs require the income stream to be turned on for a certain period before being eligible for the ltc enhancement.

Allianz has a couple of riders pertaining to nursing homes but both them and F&G require that you not be confined prior to the first year and that you own the contract for a specified period of time (10 for the 222 and 3 for Safe Income).

There are, of course, other requirements as well.

 

[ltcadviser]

165k or 265k? Either way, a likely good deal for the client (especially if you only did 165k). You could generate more LTC income from the FIA (assuming 265K) at a typical "need age" (e.g. age 85) however, like inflation riders on the hybrid single pay ULs, there is a crossover point.

If she needs LTC income earlier, ACII will win. If she needs LTC for a typical (3-4yr) period, it would be close. Only if she needed extended care (10+ years) at a later age (85+) would the FIA (like F&G) be superior.

Bottom line, you insured the primary need (LTC) for the more damaging scenarios.

No Ray, only Partial 1035 exchange of 164000. $264k would have yielded $12000 month. And they felt (correctly) 12000 month ltc was overkill for their likely needs.

All guaranteed. Need does not have to be permanent; or in a facility; or meet a vesting schedule. And with type 1 diabetics need will be well before age 80.

Turns out the local advisor was a 2nd cousin with a bank that only had an LFG VA to show.

As you know an FIA can not come close to 7k month 8 year bp for only 164000.

 

[Tahoe Ray]

No Ray, only Partial 1035 exchange of 164000. $264k would have yielded $12000 month. And they felt (correctly) 12000 month ltc was overkill for their likely needs.

All guaranteed. Need does not have to be permanent; or in a facility; or meet a vesting schedule. And with type 1 diabetics need will be well before age 80.

Turns out the local advisor was a 2nd cousin with a bank that only had an LFG VA to show.

As you know an FIA can not come close to 7k month 8 year bp for only 164000.

Very nice...no brainer for her.

 

[cloisbarton]

Here is Athene benefit story Fugent Presenter 6.0

 

[ltcadviser]

Here is Athene benefit story Fugent Presenter 6.0

Athene requires permanent confinement, and there is a 2 year vesting schedule in SC. Only pays out 5 years in confinement.

No home care.

B++ AM Best

46/100 comdex.

Yikes.

But, nice whiteboard marketing video about "Sam."

 

[scagnt83]

Athene requires permanent confinement, and there is a 2 year vesting schedule in SC. Only pays out 5 years in confinement.

No home care.

B++ AM Best

46/100 comdex.

Yikes.

But, nice whiteboard marketing video about "Sam."

This is why I havent contracted with Athene yet... everything they have is just kind of watered down... ive always found better options when ive considered them.

 

[ltcadviser]

This is why I haven't contracted with Athene yet... everything they have is just kind of watered down... I've always found better options when ive considered them.

Athene looked God-awful for my client---confinement benefit at age 64 was $27,000; at age 70 had crept up to $40,000; at age 80 was $60,000---

30 years from now at age 94 it was $82,000---still less than what State Life is at day 1...

 

[WarEagleFMO]

This came across my desk this morning:

Eagle Select Series (Eagle Life Insurance Company, a subsidiary of AE).

Regarding the LTC benefit/Confinement Care, "the rider is automatically included at no cost at issue. This allows the policy owner one additional withdrawal of up to 100% of the contract value w/o surrender charges after the 1st contract anniversary if conditions are met."

On a side note I would like to hear some input on the Inverse Bond Yield with cap.

Oh yeah, I joined this forum last night. Thank you to all the contributors for the wealth of knowledge on here. Really helps out a guy new to the industry. Although I question my sanity at times for choosing this career path it's a great market to be in

 

[SanDiego619]

Not in the sense that I think you want. They do not offer traditional style LTCI.

But they do offer income enhancement on their Lifetime Income Riders. There are a few that will double the guaranteed income for LTC events.

F&G doubles if you cant permanently perform 2 of the 6 ADLs.

Phoenix Life gives a 50%-150% increase for 2 of 6 ADLs, depending on how long the contract has been in force.

Allianz doubles for confinement in a nursing home, assisted living or hospital for 90 days.

AE does a 50% increase if I remember right.

Most of these increases are for 4-5 years. But for a $50k income, doubling it makes a $200k-$250k bucket of LTC money, and thats on top of the existing $50k income that may or may not be available for LTC use.

So you can certainly combine the use of these Riders with other forms of LTC protection. The way I look at it, the client must create an income from somewhere... it might as well include LTC protection if it can.

Just for future reference just in case no one else mentioned it...

American Equity doubles if unable to perform 2 outa 6. It is 50% increase only for the purposes of JOINT income.