Life/LTC Combo Products Are NOT Cheaper Than Stand-alone LTCi Policies

[ltcadviser]

what an insightful comment he made.

Well, depends on your definition of insightful----you sure aren't going to write asset-based LTC policies with opinions like that. Your insight will just ensure that are just missing out on the marketplace, Scott. IMO.

 

[Mr_Ed]

Well, depends on your definition of insightful----you sure aren't going to write asset-based LTC policies with opinions like that. Your insight will just ensure that are just missing out on the marketplace, Scott. IMO.

I won't sell a product I don't believe in.

 

[ltcadviser]

I won't sell a product I don't believe in.

Yeah yeah, but it is not always about you.
I used to feel the same way years ago; however times have changed; traditional policies have had multiple rate increases and consumers are seeking guarantees. There are a significant number of consumers that will only buy hybrids. I received 4 or 5 calls today alone from such consumers. Why not accept this Scott? Help people who will only buy hybrids buy the best hybrids they can buy.

I tell my clients I own a traditional policy. This was the best choice for me. When we work with consumers though, it is about what they want not what we want.

 

[Mr_Ed]

Yeah yeah, but it is not always about you.
I used to feel the same way years ago; however times have changed; traditional policies have had multiple rate increases and consumers are seeking guarantees. There are a significant number of consumers that will only buy hybrids. I received 4 or 5 calls today alone from such consumers. Why not accept this Scott? Help people who will only buy hybrids buy the best hybrids they can buy.

I tell my clients I own a traditional policy. This was the best choice for me. When we work with consumers though, it is about what they want not what we want.

once I explain the rate stability regulations to them, they are not nearly as interested in the hybrid.

 

[ltcadviser]

once I explain the rate stability regulations to them, they are not nearly as interested in the hybrid.

They sit down and smoke the coolies with you?

 

[scagnt83]

They sit down and smoke the coolies with you?

Damn, I knew that they sold LTCI differently out in Kali! We are missing out here on the east coast.

 

[ltcadviser]

once I explain the rate stability regulations to them, they are not nearly as interested in the hybrid.

Came into my office today to write a Mass Mutual traditional policy with an annual premium of $3100; after answering the client's questions, she asked me about hybrids. Left the office with a $123,000 Lincoln application. Fact of the matter is clients love hybrids today.

 

[Mr_Ed]

Came into my office today to write a Mass Mutual traditional policy with an annual premium of $3100; after answering the client's questions, she asked me about hybrids. Left the office with a $123,000 Lincoln application. Fact of the matter is clients love hybrids today.

hey, that single pay $123K premium is the perfect policy for someone who does not understand opportunity cost or net amount at risk.

 

[ltcadviser]

hey, that single pay $123K premium is the perfect policy for someone who does not understand opportunity cost or net amount at risk.

Well same benefits on a traditional policy would have cost her $6000+ year and ------even though I trust Mass Mutual to not raise her premium----her $6000 premium is not guaranteed. And she loses the "opportunity" to lose money in emerging markets and chinese stock funds in the next 15 years. Seems reasonable to me. Scott there are a lot of people with $2.0-$6.0 million net worth that do not care about intangibles such as opportunity cost. They want guarantees and they can write the check. Give people some credit. How do you define net amount at risk with non-guaranteed prdmiums?

 

[Mr_Ed]

Well same benefits on a traditional policy would have cost her $6000+ year and ------even though I trust Mass Mutual to not raise her premium----her $6000 premium is not guaranteed. And she loses the "opportunity" to lose money in emerging markets and chinese stock funds in the next 15 years. Seems reasonable to me. Scott there are a lot of people with $2.0-$6.0 million net worth that do not care about intangibles such as opportunity cost. They want guarantees and they can write the check. Give people some credit. How do you define net amount at risk with non-guaranteed prdmiums?

my net amount at risk, with my LTCi policy is zero.
if I need LTC, none of my assets are at risk, EXCEPT for whatever expense I incur during the elimination period and whatever expenses exceed my monthly benefit.

she has $123K at risk PLUS whatever expenses exceed her monthly benefit.