Why would anyone with common sense think that a life insurance policy that guarantees a payout would be less expensive than a stand-lone LTCi policy that may or may not pay a benefit.
Today I read this baloney:
"A client is interested in long-term care insurance and you come back with premium that almost sends the person into cardiac arrest. The price is shocking, way more than the prospect expected or can afford, and who, disappointed, writes it off and you write off the sale.
Not necessarily. Here’s where a linked benefit, a long-term care rider in this case, can get the coverage the client wants at an affordable price and you make the sale. It’s an example of clients getting more than they ask for — whether it’s term life or permanent insurance, they have a death benefit plus the opportunity to access the face amount for long-term care.
Clients embrace linked benefits because they add value by offering living benefits at a modest increase in cost."
When comparing similar LTC benefits, Life/LTC policies are NOT cheaper than a stand-alone LTCi policy. In fact, 9 times out of 10 a Life/LTC policy will be 2x to 3x the premium of a stand-alone LTCi policy.
I just ran a quote for a 61-year old couple sharing $250,000 of LTCi benefits: $5,000 monthly benefit, 90 day calendar day elimination period and no inflation growth.
If they buy a stand-alone LTCi policy it will cost them a combined annual premium about $2,241 per year (it will be 15% less if they can get the preferred health discount).
If they buy a Life/LTC policy it will cost them $4,432 (almost TWICE the premium). This policy would pay a death benefit of $125,000 after the death of the second spouse if neither spouse made an LTC claim.
can we please stop telling consumers (and other agents) that Life/LTC policies are cheaper than stand-alone LTCi.
Life/LTC policies are usually 2x, sometimes even 3x, more expensive than a stand-alone LTCi policy with comparable benefits.
mr ed
Today I read this baloney:
"A client is interested in long-term care insurance and you come back with premium that almost sends the person into cardiac arrest. The price is shocking, way more than the prospect expected or can afford, and who, disappointed, writes it off and you write off the sale.
Not necessarily. Here’s where a linked benefit, a long-term care rider in this case, can get the coverage the client wants at an affordable price and you make the sale. It’s an example of clients getting more than they ask for — whether it’s term life or permanent insurance, they have a death benefit plus the opportunity to access the face amount for long-term care.
Clients embrace linked benefits because they add value by offering living benefits at a modest increase in cost."
When comparing similar LTC benefits, Life/LTC policies are NOT cheaper than a stand-alone LTCi policy. In fact, 9 times out of 10 a Life/LTC policy will be 2x to 3x the premium of a stand-alone LTCi policy.
I just ran a quote for a 61-year old couple sharing $250,000 of LTCi benefits: $5,000 monthly benefit, 90 day calendar day elimination period and no inflation growth.
If they buy a stand-alone LTCi policy it will cost them a combined annual premium about $2,241 per year (it will be 15% less if they can get the preferred health discount).
If they buy a Life/LTC policy it will cost them $4,432 (almost TWICE the premium). This policy would pay a death benefit of $125,000 after the death of the second spouse if neither spouse made an LTC claim.
can we please stop telling consumers (and other agents) that Life/LTC policies are cheaper than stand-alone LTCi.
Life/LTC policies are usually 2x, sometimes even 3x, more expensive than a stand-alone LTCi policy with comparable benefits.
mr ed
