Lincoln MoneyGuard Vs Traditional LTC

[CALTCAgent]

You really need to compare the underwriting guides and see what they would qualify for - not only between standalone LTCi and combo but also between different combo products (e.g. Hancock's version of MoneyGuard will pay a lot more than Lincoln's but with more strict underwriting). I've placed several in MG who were either declined or rated by name brand standalone products.

Can you give the examples of why/when they were declined by standalone products and then subsequently accepted by MG?

Would be helpful to know when to look at MG as opposed to standalone since the underwriting guide is not helpful in that area.

Thanks!

 

[VolAgent]

You really need to compare the underwriting guides and see what they would qualify for - not only between standalone LTCi and combo but also between different combo products (e.g. Hancock's version of MoneyGuard will pay a lot more than Lincoln's but with more strict underwriting). I've placed several in MG who were either declined or rated by name brand standalone products.

I get that. I'm looking for some concrete examples. What are some conditions that would get a person declined for LTCi, but accepted with Hancock or MoneyGuard.

Right now, my opinion of MoneyGuard like products is that they are for folks that can't accept the premiums are gone with a LTCi product, or don't believe it LTCi, but want to hedge their bets.

 

[Franz Kafka]

Can you give the examples of why/when they were declined by standalone products and then subsequently accepted by MG?

Would be helpful to know when to look at MG as opposed to standalone since the underwriting guide is not helpful in that area.

Thanks!

E.g. One client told her doctor that she felt like her memory was getting worse and wanted get herself checked out (for Alzeimers etc). The doctor wrote down "memory loss" without much thought to refer her to a specialist. Tests came all negative but 2 carriers flat out declined based on APS. MG approved based on doctor's letter that said her memory was fine.
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I get that. I'm looking for some concrete examples. What are some conditions that would get a person declined for LTCi, but accepted with Hancock or MoneyGuard.

Right now, my opinion of MoneyGuard like products is that they are for folks that can't accept the premiums are gone with a LTCi product, or don't believe it LTCi, but want to hedge their bets.

My experience has been that MG would give genuine considerations to "iffy" apps as long as the symptoms were mild. Standalones apply strict underwriting IMO.

 

[CALTCAgent]

E.g. One client told her doctor that she felt like her memory was getting worse and wanted get herself checked out (for Alzeimers etc). The doctor wrote down "memory loss" without much thought to refer her to a specialist. Tests came all negative but 2 carriers flat out declined based on APS. MG approved based on doctor's letter that said her memory was fine.
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My experience has been that MG would give genuine considerations to "iffy" apps as long as the symptoms were mild. Standalones apply strict underwriting IMO.

Thanks for the info.

I'd think standalone LTC would approve as well with the Dr. letter saying memory was fine too, wouldn't they?

I've feel that when carriers/underwriters don't want the business, they can interpret conditions as "mild" or "severe". I know this is vague, but its a gut feeling. Like when there are multiple conditions, I've had carriers interpret a condition as more "severe" than I feel it is.

My issue with MG is that without actual concrete real world examples or more detailed underwriting guidance its quite a gamble and really up to their discretion more than standalone LTC. I think thats how they want it.

To me MG is for "healthy people" that also don't want LTC premiums. The "healthy people" narrows the market down quite a bit.

I'm sure they probably do accept some people that standalone LTC won't, and vice versa, but I can't clearly identify who those people will be.

Thanks

 

[Franz Kafka]

To me MG is for "healthy people" that also don't want LTC premiums. The "healthy people" narrows the market down quite a bit.

Generally simplified underwriting IS for healthier people. One difference with MG would be that it's a GO/NO GO underwriting - i.e. no different risk classes. I believe that covers a lot of area.

Personally, it has been the "ROP at anytime" feature (with single pay) that closed 10 our of 10 presentations.

 

[yankee466]

In my experience (twice now) with traditional LTC, if the person failed the memory test, the person could only get reconsidered if the doctor wrote a letter, and THEN AND ONLY THEN, if the client also spent about $1500 out of their own pocket to go to a neurologist and pass a whole battery of very specialized memory tests.

Mentioning memory loss to a doctor will get you declined in a heartbeat, whether you remember mentioning it or not.
I had a Genworth and Mutual of Omaha situation like this.


Maybe MG would in fact be more forgiving in this situation.

 

[VolAgent]

In my experience (twice now) with traditional LTC, if the person failed the memory test, the person could only get reconsidered if the doctor wrote a letter, and THEN AND ONLY THEN, if the client also spent about $1500 out of their own pocket to go to a neurologist and pass a whole battery of very specialized memory tests.

Mentioning memory loss to a doctor will get you declined in a heartbeat, whether you remember mentioning it or not.
I had a Genworth and Mutual of Omaha situation like this.


Maybe MG would in fact be more forgiving in this situation.

While you can't do much about what they have told the doctor in the past, I always tell them that the interview is not the time to joke about forgetting where you put your car keys.

 

[CALTCAgent]

Generally simplified underwriting IS for healthier people. One difference with MG would be that it's a GO/NO GO underwriting - i.e. no different risk classes. I believe that covers a lot of area.

Personally, it has been the "ROP at anytime" feature (with single pay) that closed 10 our of 10 presentations.

Good info about the "ROP at anytime" feature. It is a great selling feature. They can charge back up to a year I believe. I'm sure the majority don't cancel before a year, but some will.

One nice thing is I think they don't pull an APS?

At least if they are declined you don't have to wait months to find out and you have a better chance of getting back in the door.

Thanks!