Living Benefits verse No LB.

[scagnt83]

I agree with this...but I also don't think most retirees need life insurance. That's why I prefer hybrids.

I agree that many dont need it. But many still want it. Often to leave "something" to their kids or grandkids.

I cant help but think that many who bought a Hybrid and were not shown Life/Chronic would have seriously considered the Life/Chronic if shown.

 

[LostDollar]

I would imagine the cost of care required for people with that level of chronic illness means the living benefits would eat up the payout for most of the life insurance component, so the rider could really be described as a substitution for life insurance rather than an additional benefit?

Correct.

It's a "Winnebago" product. Not as nice as your car but you can drive it, not as nice as your house but you can live in it.

It does nothing well but does two things at the same time that some people want.

(caveat, not an agent)

It seems to me like there is something wrong with this analogy. I can't put my finger on it; but, to me, it does not feel like the analogy matches up to the way DHK and Newby have said I need to think about the dollar value in, or of, a life insurance policy.

 

[Tahoe Ray]

(caveat, not an agent)

It seems to me like there is something wrong with this analogy. I can't put my finger on it; but, to me, it does not feel like the analogy matches up to the way DHK and Newby have said I need to think about the dollar value in, or of, a life insurance policy.

Considering that we all have different business models, that makes sense.

My philosophy isn't "right" or "wrong", it's just how I run my agency. I may disagree with other ways that folks feel about insurance, but that doesn't make either of us correct/incorrect.

It's just an opinion about how insurance planning should be done.

 

[Cornelius]

Buy a life policy and have a supplemental on the side?

I agree that many dont need it. But many still want it. Often to leave "something" to their kids or grandkids.

Which brings in the question. What if a agent sells a client a policy without LB but could have with another carrier with all things being basically equal (Term) could the client come back at the agent for not selling them the policy with LB in the case of a major health issue?

Would that be a suitability verse fiduciary issue?

I cant help but think that many who bought a Hybrid and were not shown Life/Chronic would have seriously considered the Life/Chronic if shown.

 

[LostDollar]

I cant help but think that many who bought a Hybrid and were not shown Life/Chronic would have seriously considered the Life/Chronic if shown.

(Caveat, not an agent.)

I didn't understand this comment when it was made. I just stumbled onto a State Life OneAmerica Asset Care product. Is that the type of thing you are talking about?

 

[Tahoe Ray]

(Caveat, not an agent.)

I didn't understand this comment when it was made. I just stumbled onto a State Life OneAmerica Asset Care product. Is that the type of thing you are talking about?

Asset care is considered a hybrid, not a life/chronic product.

Nationwide's No-Lapse Guarantee UL w/ their LTC rider is a better example of what scagnt83 was describing.

 

[Tahoe Ray]

I cant help but think that many who bought a Hybrid and were not shown Life/Chronic would have seriously considered the Life/Chronic if shown.

Yeah...just show all options and let the client choose.

I always make a recommendation but at the end of the day, these clients normally need something so there isn't really a wrong answer.

Just buy what's important to you.