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I wanted to see what if some of you who are specialist in the LTC market operate this way.
Most of my insurance production is on the life side, and my average new client is a referral who is going through our financial-planning process, bringing their investments over to us and looking for overall guidance. As called for I utilize Life insurance as part of the estate planning/legacy for the kids while also being a small portion of their conservative asset allocation.
Over the past two years I have been utilizing more and more JH's UL/IUL's with the LTC rider. Unlike some other carriers who offer "chronic illness riders" I feel JH's permanent life products combined with their LTC rider is a unique concept as the client can exhaust 100% of the death benefit during their life for qualified long-term care needs.
I wonder how much you folks who specialize in LTC are using this concept/product?
JH is not one of my top 2 bread and butter carriers but they serve as a niche product/concept within our overall offerings.
From the clients perspective, it essentially is a guaranteed return of premium LTC contract.......if they don't need LTC, the death benefit goes to their heirs tax free. During their life they also have access to the cash-value.
From a premium perspective obviously the client has to "pay" a good bit more for a Life/LTC contract, however unlike LTC annuities or Lincoln's MoneyGuard single pay product, JH's life w/ltc rider product does not require a large upfront premium.....it is an annual or monthly premium like any other life policy. Further, my thoughts are that a traditional LTC premium is a "premium cost" while the life/ltc product, although higher premium, is more of savings moving as if the policy is held full term they are guaranteed to have a larger payout (through ltc need or death) than what they've put in.....traditional LTC in comparison is more of a pure insurance risk play.
I realize, and also explain to clients, that the risk we are exposed to with a life/ltc product is that the cost of long-term care could potentially exceed the amount of death benefit/ltc benefit we have....in comparison to a life-time benefit traditional ltc product.
Again, I'm just curious to hear the ltc specialists view on how/if they are using this product or similiar one's to JH's.....to my knowledge Genworth is the only other carrier who offers a true LTC rider on a traditional life contract.
Thanks
Most of my insurance production is on the life side, and my average new client is a referral who is going through our financial-planning process, bringing their investments over to us and looking for overall guidance. As called for I utilize Life insurance as part of the estate planning/legacy for the kids while also being a small portion of their conservative asset allocation.
Over the past two years I have been utilizing more and more JH's UL/IUL's with the LTC rider. Unlike some other carriers who offer "chronic illness riders" I feel JH's permanent life products combined with their LTC rider is a unique concept as the client can exhaust 100% of the death benefit during their life for qualified long-term care needs.
I wonder how much you folks who specialize in LTC are using this concept/product?
JH is not one of my top 2 bread and butter carriers but they serve as a niche product/concept within our overall offerings.
From the clients perspective, it essentially is a guaranteed return of premium LTC contract.......if they don't need LTC, the death benefit goes to their heirs tax free. During their life they also have access to the cash-value.
From a premium perspective obviously the client has to "pay" a good bit more for a Life/LTC contract, however unlike LTC annuities or Lincoln's MoneyGuard single pay product, JH's life w/ltc rider product does not require a large upfront premium.....it is an annual or monthly premium like any other life policy. Further, my thoughts are that a traditional LTC premium is a "premium cost" while the life/ltc product, although higher premium, is more of savings moving as if the policy is held full term they are guaranteed to have a larger payout (through ltc need or death) than what they've put in.....traditional LTC in comparison is more of a pure insurance risk play.
I realize, and also explain to clients, that the risk we are exposed to with a life/ltc product is that the cost of long-term care could potentially exceed the amount of death benefit/ltc benefit we have....in comparison to a life-time benefit traditional ltc product.
Again, I'm just curious to hear the ltc specialists view on how/if they are using this product or similiar one's to JH's.....to my knowledge Genworth is the only other carrier who offers a true LTC rider on a traditional life contract.
Thanks
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