LTC Replacement

[Itworks]

curious on what some of you would do..

female LTC from Transamerica when she was 59.
Unlimited,90 days elim, $110 daily, 5% compound, annual prem WAS $1635.

9 years later at 68 yrs old her prem is $2615.62 with 180 elim, and $90 daily, unlimited (she made some changes in 2002 to help with increase). With her 5% compound her daily benefit as of today is $133.

She is concerned about her rising premiums and is checking into replacement, etc. She did find out she can either stay unlimited or go 3 yrs 3 months with trans. But, the 3 yrs 3months has $135,000 cap...

I dont like the 180 days and the unlimited. Never flipped anyone and just wanting to know other experiences..

 

[Mr_Ed]

fyi...the policy probably has no elimination period for home healthcare.

 

[hardwork]

If you replace any insurance these days, you better make darn sure you leave them in a better place than where you found them!!

That being said, what would trans charge for the reduced benefit?
They will more than likely reduce the premium to the same level of any one of a number competing insurers,if she chooses to reduce her benefits.

The real question: Is it worth the potential liability of replacing a life time benefit? Also keep in mind, you would receive a reduced comp!

 

[Itworks]

If you replace any insurance these days, you better make darn sure you leave them in a better place than where you found them!!

That being said, what would trans charge for the reduced benefit?
They will more than likely reduce the premium to the same level of any one of a number competing insurers,if she chooses to reduce her benefits.

The real question: Is it worth the potential liability of replacing a life time benefit? Also keep in mind, you would receive a reduced comp!

She called them and her only options and premium cost were what I stated above... So, she doesnt have that many options. She has already changed from 90 to 180 and no charges that I could see... Obviously, by researching my goal is to leave them in a better place or I would of flipped her last week (and I not concerned about how much my comp is).

My goal is to make sure I give her all options and then decide what to do. Her old agent is no longer there and she feels like the guy on the phone doesnt give a crap about her. She is on her own and I will try help her and not make her feel abandoned... I am getting my manager involved as I would never replace without being 100% confident I am advising the best option. I am just looking for advice and maybe something I am overlooking.

 

[Mr_Ed]

She called them and her only options and premium cost were what I stated above... So, she doesnt have that many options. She has already changed from 90 to 180 and no charges that I could see... Obviously, by researching my goal is to leave them in a better place or I would of flipped her last week (and I not concerned about how much my comp is).

My goal is to make sure I give her all options and then decide what to do. Her old agent is no longer there and she feels like the guy on the phone doesnt give a crap about her. She is on her own and I will try help her and not make her feel abandoned... I am getting my manager involved as I would never replace without being 100% confident I am advising the best option. I am just looking for advice and maybe something I am overlooking.

If she is an Indiana resident, what would it cost to get a TAP ILTCIP policy for her?

 

[Itworks]

If she is an Indiana resident, what would it cost to get a TAP ILTCIP policy for her?

Okay, I have no idea what that is?? Plus, I am captive, so I dont have other options..

 

[Mr_Ed]

Okay, I have no idea what that is?? Plus, I am captive, so I dont have other options..

ILTCIP stands for the Indiana Long-Term Care Insurance Program.

TAP stands for Total Asset Protection.

ILTCP: Home

 

[Itworks]

ILTCIP stands for the Indiana Long-Term Care Insurance Program.

TAP stands for Total Asset Protection.

ILTCP: Home

okay, I am a dork lol. The reason she contacted me is because she is part of an association and will get a grp discount, so our rates are going to be competitive. I am just trying to figure out if she should just stay or go....

 

[Agentjane]

If she is an Indiana resident, what would it cost to get a TAP ILTCIP policy for her?

You should look to your MGR for these questions....all you can experience is trial and error for now, and you'll get it! LTC is all underwritten ya know...so how would you be able to even give a price w/o an application first? This is Sales as well as help/advise....just be careful not to let the potential client have the reigns...you let them know you are in no hurry, you have no idea what the costs are, and ask what they can pay. Just get the application signed is all for now.... keep it simple remember. Anytime as a co-agent friend of the forum, please ask away, I'm new to the forum but looking at it right off I see a LOT of Arrogance. Most with the NAMES of these folks...."Expert..." "THE SMARTEST AGENT"..."Iknowmorethanyou"....lol~ It's kinda scary...he he he
- - - - - - - - - - - - - - - - - -

curious on what some of you would do..

female LTC from Transamerica when she was 59.
Unlimited,90 days elim, $110 daily, 5% compound, annual prem WAS $1635.

9 years later at 68 yrs old her prem is $2615.62 with 180 elim, and $90 daily, unlimited (she made some changes in 2002 to help with increase). With her 5% compound her daily benefit as of today is $133.

She is concerned about her rising premiums and is checking into replacement, etc. She did find out she can either stay unlimited or go 3 yrs 3 months with trans. But, the 3 yrs 3months has $135,000 cap...

I dont like the 180 days and the unlimited. Never flipped anyone and just wanting to know other experiences..

Seems like she doesn't like the reality of getting older and paying more~ like most of us. I would flip and stay unlimited...because the chances of needing ltc are slim for her right now. I believe it's the money that's got her....and sometimes we have toSACRIFICE our benefits when we don't have the money~PEOPLE NEED MONEY FOR THIS TYPE OF COVERAGE~ Perhaps you can keep us posted on your solution.

 

[Mr_Ed]

Jane asks, "so how would you be able to even give a price w/o an application first?"


It's actually pretty simple with long-term care insurance.
Ask them about their health history, read the underwriting guide and then use the quoting software.

Voila! You have an accurate quote.
- - - - - - - - - - - - - - - - - -

okay, I am a dork lol. The reason she contacted me is because she is part of an association and will get a grp discount, so our rates are going to be competitive. I am just trying to figure out if she should just stay or go....

Just because there's an association discount doesn't mean the rates will be competitive.

I spoke with a couple recently who bought an LTCi policy through their association about 5 years ago. With the discount, their combined annual premiums were just under $4,000 per year.

I could replace the coverage NOW, 5 years later, with better benefits from a higher-rated company for about that same premium.

If they'd contacted me 5 years ago, they would have been able to get better benefits, from a higher-rated insurer, for about $2,400 per year.

And, here's the dig. They are getting a 2nd rate increase on that policy. The policy I would have sold them 5 years ago, for 40% less premium, has NOT had any rate increases.

An association discount is only good if the rates are competitive to begin with.