Software for Long-term Care

Discussion in 'Long Term Care Insurance Forum' started by Mshunt, Mar 21, 2017.

  1. Mshunt
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    Mshunt Member

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    Do you have any recommendations for an online or even a downloadable software that will help me in computing long-term care situations? I am an independent broker with access to MoOmaha LTC and LFG MoneyGuard and I would like to be able to explain those two side by side. Also, it would be great if I had a program where I can input their information and then it spit out data regarding building LTC need. Not even sure if my question makes sense....thanks in advance.
     
  2. ltcadviser
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    ltcadviser Well-Known Member

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    Send the illustrations to your clients and explain it like this:

    Lincoln: Fixed guaranteed premium, you can write one check, or spread premiums out over 10 years or to age 65; Return of your premium through life insurance. Your risk is lost opportunity cost of your principal, as well as asset offset risk of principal loss should a long term claim occur.

    Omaha: for annual premium equal to ~3% of the principal required to fund Lincoln Moneyguard you can buy the Omaha traditional policy and pay as you go. Your risk is that your premiums may increase. However, should your invested principal generate greater than 3% rate of return you can offset your rate increase risk.

    Both policies allow you to buy the amount of LTC coverage you want to obtain. The only difference is the funding options and the assumed risks (asset offset risk/opportunity cost risk vs. premium increase risk)
     
  3. DHK
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    DHK Well-Known Member

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    If you're simply trying to illustrate the problem and the potential solution, I believe the software link in my signature file will help you do just that.



    You can illustrate the need, then the costs and model both and let the client choose which they'd prefer.
     
    Last edited by a moderator: Oct 10, 2017
  4. ltcadviser
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    ltcadviser Well-Known Member

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    And you will write 0 LTC business.
     
  5. Mr_Ed
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    Mr_Ed Well-Known Member

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    so true.
    so true.

    :biggrin::biggrin::biggrin:
     
  6. CALTCAgent
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    CALTCAgent Well-Known Member

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    That software seems to present the "problem" ok. I assume the red is running out of money.

    I don't think it presents the LTC solution very well. Just my opinion.
     
  7. DHK
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    DHK Well-Known Member

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    I don't have an axe to grind so I'm not here to defend my post or anything. Yes, the software certainly WILL help illustrate the problem and how a LTC event can and will decimate a retirement portfolio. This is purely a numbers conversation about preserving retirement assets and/or estate planning (if talking about partnership policies), not about the emotional impact that a LTC event would have on spouses and/or adult children.

    If you're incorporating LTC planning with retirement planning, then knowing how to integrate the two in the planning discussion is beneficial, but I think the retirement planning aspect comes first, if you're going to use something like this.

    Illustrating the solution... I agree that it won't look as pretty or as simple. You can only show the daily benefit expressed in an annual figure based on the pool of LTC dollars purchased, to help offset the need that you originally show.

    As far as illustrating traditional LTC vs asset-based LTC... you really can't show that, unless you're showing the premiums paid every year (that it won't impact retirement income by much) through the "special expenses" tab or a $50,000 withdrawal (for example) from non-qualified funds (ideally) to transfer into an asset-based LTC solution. You could later show the life insurance proceeds from that solution if death were to occur at age 85 or whatever, just to show that the $50,000 wasn't "wasted".

    You might not want to give a choice if you're using this software. Just illustrate the one solution you think is the best fit for the client and make sure that the numbers fit the overall situation, and present one - versus two choices.

    Just my thoughts.
     
  8. ltcadviser
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    ltcadviser Well-Known Member

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    Your post was fine, and was helpful.

    My comment was just an observation that all of the financial planning software and excel spreadsheets in the world will never move anyone forward with an LTC application.
     
  9. DHK
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    DHK Well-Known Member

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    Very true. Most planning software won't do anything.

    I suppose the difference with this software, is that it's designed to be used in front of the client, rather than as a "back office" tool to come back with a 150-page report.

    When you can show the numbers and the graphs as they adjust 'in real time', and people can see what the problems are, it gets them more involved in the decision making process.
     
  10. Mshunt
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    Mshunt Member

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    Thanks everyone for the input. I agree that if they can see things in real time it will help. I primarly focus on Medicare stuff but because these people are seeing it happen to family members, parents, they are inquiring about LTC. I think I have lost a few to financial planners and so I am trying to position myself to be prepared when those conversations start. This week I have focused on getting a one-page fact finder together so I can get a good idea of health bc we can talk all day about need but if they can't qualify then its just chatting. I have debated for a while which direction to go into another product line off the Medicare stuff and LTC has presented itself. I also toyed with going into a niche like disability policies w/ Ohio National or special needs planning using life to fund. Thoughts on that?
     
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