- 1,459
Does this product still exist? Had a client bring it up, I've seen it sold in the past, but not heard anything about it in a while.
LTC with ROP
- Thread starter Full Throttle
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- long term care
There are a lot of companies that sell LTC with the ROP rider.
There are lots of variations of the ROP rider.
Some refund if you die before a certain age.
Some refund a portion of the premium, depending upon what age you are when you die.
Others refund the full premium regardless of when you die.
Others refund the full premium MINUS claims paid, regardless of when you die.
Lots of choices.
- 1,118
ROP at death? I believe MoO (Mutual Care My Way), John Hancock (Custom Care II Enhanced), and Allianz (Generation Protector II) have it, among others.
If you want a product where you can trigger a ROP while still alive, check out Lincoln's Money Guard Reserve product.
If you want a product where you can trigger a ROP while still alive, check out Lincoln's Money Guard Reserve product.
ALZ stopped selling LTCi about a year ago.
Other companies that offer the ROP rider in its various forms are:
Assurity, Genworth, Medamerica, Met Life, Prudential, Transamerica, and others.
For about half the cost of the Money Guard policy, they can usually get a single pay LTCi policy, with much better LTC benefits AND a refund of premium rider.
- 15,319
Since Money Guard is a single premium life plan with a LTC rider, how is it that a plan with an annual premium is half the price?
I'm not a LTC expert so sorry if this is a very basic question.
Rick
Why not throw out all sorts of options.....how about 80% RoP (Surrender) if you are still alive with really good traditional LTC coverage from someone like Assurity or Guardian? At least then you could have really good LTC coverage, unlike a linked benefit plan...without having to fork over huge sums of money to get started.
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Rick,
I'm referring to a single-pay LTCi policy.
Depending upon the state of residence, there are a few companies that offer "single pay" LTCi policies. They make one premium payment and they never have to pay again.
The single-pay LTCi policies with ROP rider are oftentimes about half the cost of the MG policy, for comparable LTC benefits (especially for married couples.) And, if they never need it, the premium is fully refunded to their heirs.
- 15,319
Can they get their money back in 5 years if they wish or do they need to die so their heirs get it?
Rick
No, Rick.
They have to die.
I know that's a positive part of the MG product. They can always get their money back at anytime.
But, I'm not so sure the "get your money back at anytime" feature is worth the additional premium.
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- 15,319
If you look at it as a transfer of assets from a 1-2% CD into a life insurance policy, then it's not really an expense. Being treated as a life insurance policy means the heirs receive a death benefit which is more than the premium itself.
I see both sides to this, but find it hard to do an apples to apples comparison since they are different products.
I wish I was more of an LTC expert and might find myself moving in this direction once health and Medicare sales become ancient history.
Rick
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