LTC Annuity

May 31, 2007

  1. annuityguynwv
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    annuityguynwv New Member

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    What is the best LTC annuity around. I know that Great American has one, but who else is in the game.
     
  2. rocketgurl0
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    rocketgurl0 New Member

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    Hey, there's one I know of,
    the details are:


    Allianz Life NY Dominator Annuity


    A.M. Best Rating: "A" (Excellent)
    Year Founded: 1979
    Total Assets: $68.7 billion

    Term: 5 years (walk away, no annuitization required)
    Interest: 5.1%
    Sales Charge: None
    Minimum Deposit: $35,000
    Maximum Deposit: $500,000 (without Home Office approval)
    Rate Lock Protection: 60 Days


    lemme know what you make of it, I picked it up using this: http://www.Annuity-Annuity.info

    ------Rocketgurlhttp://www.Annuity-Annuity.info:biggrin:
     
  3. patch36
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    patch36 Guru

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    What makes that Allianz a LTC Annuity? GA is the only decent one I know of, but I have avoided it and sold stand alone LTC and Annuiites. Some annuites allow 100 pct withdrawal without penalty if client goes into Nursing Home. I am familiar with Midland's Paragon Plus and Aviva has several that do that. I am sure many other companies have annuites that do that also.

    The GA LTC annuities are difficult to compute and understand for the average salesman and client. It appears to be a bunch of smoke and mirrors by the time you are done explaining it. It could be me... ;)
     
    patch36, Jul 22, 2008
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  4. thewold
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    thewold Expert

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    Mutual of Omaha has the living care annuity and I think OneAmerica has one as well.
     
    thewold, Jul 22, 2008
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  5. InsuranceJosh
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    InsuranceJosh Super Genius

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    If you don't understand the Great American ltc annuity then just take the webinar about it at GAFRI.COM
     
  6. patch36
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    patch36 Guru

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    oh, I understand it well enough, but the few times I have penciled it out it was better to sell a stand alone policy and do something else with the money. I honestly do very little LTC work because my clients are generally not qualified, too old and/or won't pass underwriting.

    I did say the average salesman ;) , but thanks for the webinar tip. I was able to understand it and present it, it just did not make sense to use it in the situations I was exposed to.
     
    patch36, Jul 22, 2008
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  7. SmartMoney
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    SmartMoney Expert

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    I do very little to nothing in LTC business, but what makes the general difference in an LTC Annuity over a regular annuity. Are you taking about plans with a return of premium feature? I can see where those would be beneficial, but wouldnt two seperate plans be better for the client (being more inclusive) and better for the agent too (two commissions)...
     
  8. patch36
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    patch36 Guru

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    To me, an LTC annuity is just a marketing ploy by the annuity company to target a specific market. Whatever the case, you are using earnings from the annuity to fund a quasi LTC policy or you are using your own funds from the annuity to self fund your LTC. Many Annuities allow accellerated withdrawals for Nursing Home or total withdrawals without surrender penalties if you need LTC. For me a true LTC Annuity like GA offers is not as good as a real LTC policy. Both require underwriting. A stand alone LTC policy is much easier to understand and quantify to the client, and if you feel the need you can fund the LTC with systematic withdrawals from a stand alone annuity.

    Better for the agent because you get two commissions? I seriously never think in those terms unless it is after the fact. The business is too sensitive to ever do anything other than what is best for the client. The money sorts itself out later.
     
    patch36, Aug 26, 2008
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  9. thewold
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    thewold Expert

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    There's a little more to them than that. For instance, the oneamerica is a fixed annuity that grows somewhere around 3.2% with some kind of floor, but it also has a virtual account that grows at over 5%. So if you need LTC, you can draw out of the virtual account, if not, you get the other account.

    With the MOO, it too is a fixed annuity that grows at a rate around 3%, but then you buy a rider that will give you a virtual account of 3x your account balance after being in the policy for two years. Basically, if you set aside 100K for LTC and went into a facility at a rate of 50K a year, you would get two years. With the MOO, you would go through your money in the first two years and MOO's money for the next four years. Either method you go, and I don't know about GA but I'm sure it is similar, you are basically better leveraging your money to self insure for LTC.

    One of the other benefits of these products is how they qualify for tax treatments under the pension protection act. normally, any gains are taxed when taken out as ordinary income, but with these products, if you take the money out for qualified LTC, everything is tax free.

    That's my take on these products. Great for those people who think they can self insure or don't want to pay the LTC premiums every month.
     
    thewold, Aug 26, 2008
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  10. patch36
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    patch36 Guru

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    Thanks for the explanation. I have a basic understanding of the GA product and it is similar. It didn't pencil out with the folks I presented it to (two different couples). It isn't a bad deal for the right people with the right money.

    The annuity world is going rider crazy with the income, accelerated benefit, ltc, and so on... They work for some people.
     
    patch36, Aug 26, 2008
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