LTC or Annuity for Texas Resident

Discussion in 'Long Term Care Insurance Forum' started by mtgman, May 22, 2015.

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  1. mtgman
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    Hello
    I have a client interested in LTC age 60 female to protect assets.
    Has been looking at single premium payment with return of premium.

    Would annuity with LTC rider be a better route?

    What carrier would be best for either.
    Thanks
     
  2. Mr_Ed
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    if she's healthy, she would be better off getting a traditional LTCi policy.
    if she's not healthy, the only product she may be able to get is an annuity with an LTC rider.
     
  3. Tahoe Ray
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    At 60 and healthy, you'll be much better off with the life/ltc combo than the annuity/ltc combo.

    Annuity/ltc (Statelife, Forethought, Lincoln, etc.) Can be good for older folks (70s), less healthy people, and existing non-qual annuity 1035s.
     
  4. Mr_Ed
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    at 60 and healthy she'd be much better off NOT buying a single premium product. She should keep the single premium invested in her own portfolio, then use part of her earnings each year to pay the premium on a traditional LTCi policy.
     
  5. Tahoe Ray
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    I don't necessarily disagree but that wasn't the question.....
     
  6. ltcadviser
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    I do not necessarily agree, Scott. Outside of a handful of strong underwriters that still have unisex pricing (Mass Mutual, NY Life) female LTCi rates are fairly high.

    A hybrid LTC policy such as Lincoln Moneyguard is a reasonable option for a 60 year old female.

    Even with great priced stand alone products, the non guaranteed lifepay premium is still 3%-4% of principal.

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    Annuity would be awful option. Show her Lincoln Moneyguard II, 6 years, 3% compound; either the vested or basic model depending upon her preferences. Policy has 0 day waiting period in all settings and care coordination services.

    Review of Lincoln Moneyguard II Long Term Care Insurance - LTC Partner
     
    Last edited: May 22, 2015
  7. Mr_Ed
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    Exactly.

    If she can earn 3% on her money (which is reasonable), she's better off keeping her principal herself.
     
  8. ltcadviser
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    Well, actually you have to account for a 0 day waiting period in all settings so it might be 4-5% at best if you push a traditional policy ep down to 30 days AND buy a waiver of HC EP rider. And this will be with just a handful of companies today that many agents do not even write (NY Life, Mass Mutual), Single female applicant rates with Transamerica, Genworth, John Hancock, Northwestern, Mutual of Omaha....might need 7% return or more. So, Moneyguard is reasonable approach when faced with some companies' pricing. And Moneyguard is fixed and guaranteed. I know Scott you feel a traditional policy will never have a rate increase today but consumers and agents sometimes feel otherwise.
     
  9. CALTCAgent
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    What is her health ?

    Where is the money coming from ?

    How much was she wanting to put in ?

    Any particular assets or as much as possible ?
     
  10. ltcadviser
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    Anyway mtgman, your best option will be either a traditional ltc policy through Mass Mutual or NY Life; or a single premium policy through Lincoln.

    Pass on the annuity combos.

    If your client happens to be funding the policy with NTQ annuity contract with significant gain, you will want to opt for the traditional Ltc policy and 1035 exchange the annual premium.

    This answer presupposes insurable health.
     
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