One America Inflation

Jan 26, 2018

  1. ltcadviser
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    How bout calling my Mom every Thanksgiving at renewal instead and making her payment for her.
     
  2. Mr_Ed
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    I told you it was b.s.

    If she had taken the landing spot and decreased her IB to 3-ish% she would have had little or no increase.
     
    Mr_Ed, Jan 27, 2018
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  3. ltcadviser
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    ltcadviser Guru

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    You are so full of crap lol. She bought 5% compound. Not 3% compound. So with your way of logic its ok for John Hancock to change my mom’s plan to 3% growth. Not what she bought Scott. 3% is 50% co-insurance. Landing spot is LTC insurance speak for “stick em up!”
     
  4. bluemarlin08
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    bluemarlin08 Guru

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    The more I review the one america product, the more questions. Have a client that is considering putting 150,000 in Hybrid life product, 4% inflation 4500 monthly benefit age 56 and 55. If they buy a NGL lifetime plan annual premium is 5600. Using the earnings on the 150,000 to pay the premium, if one goes on claim in 25 years and claim lasts 3years, costs - 0. One America cost is 300,000. Why choose the One America plan?
     
  5. ltcadviser
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    NGL has 4% compound inflation?

    What do you project premium increases to be over 30 years with NGL?

    What is the single premium number with NGL if you actually equalize the LTC benefits?
     
  6. bluemarlin08
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    bluemarlin08 Guru

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    The illustration was run at 3%, premium will be some higher using 5%. Still, that is over a 300,000 swing, that certainly could cover a ton of rate increases. The hybrid plans are practical for some folks it appears, but very healthy folks, especially younger ones will pay an awful lot for these policies.
     
  7. ltcadviser
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    I just ran both an NGL and OA single pay for a couple $4500 month, Lifetime BP, 3 % growth; NGL was $145,000 OneAmerica was $122000
     
  8. bluemarlin08
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    Why wouldn't someone chose the NG policy and avoid those potential additional care costs?
     
  9. ltcadviser
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    People might want to pay $23000 less and receive $112,500 back if care is not needed.
     
  10. bluemarlin08
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    So I suppose the decision is do you want to save 23,000 upfront assuming no claims. Or pay an extra 23,000 to avoid a potential additional cost of 100,000 plus additional charge if one has a claim exceeding 2 years in 25 plus years. I would choose to pay annually and use the earnings on the proposed lumps sum. Do you think most agents inform a client of all their options? How much commission does NG pay on lumps sum above the annual premium?
     
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