Whole Life Policy with LTC Rider

[ltcadviser]

I received an inquiry today from an individual looking to buy a Whole Life policy, max fund it for cash value accumulation and retirement income; and include a LTC rider for just in case. Main focus is on cash and retirement income though. He is planning to fund it $100,000 year for at least 7 years until it is self sustaining. I really just focus on LTC benefits, not whole life. So, anyone want to take a look at his Mass Mutual Whole Life illustration and see if we can beat it? Client is in California, Age 59. (DHK, you want to take a look) Mass Mutual approved him at Standard NT. Please call me at (800) 891-5824 or email me at [email protected]. Not sure who the other players for whole life with LTC rider would be? Guardian, Penn Mutual??

 

[scagnt83]

You wont beat Mass for the combo of Cash Value and LTC benefits. Guardian tries but last I compared the two it didnt beat Mass.

 

[DHK]

Broker Insight: Products

You're probably looking at the LTC Access rider, compared to CareChoiceOne (a moneyguard-type single-premium policy) or traditional LTC (SignatureCare 500).

Of course, the rider is a 101(g) vs 7702(b).

Sounds like he's doing a 10-pay but for only 7 years. Not a bad plan for both performance and insurance coverage.

I concur with scagnt83 - I'd probably stick with MassMutual for that case.

 

[ltcadviser]

Yes, LTC Access Rider on WL. I do not write WL ever. Very familiar with MM LTC centric products (Signature Care is great. CareChoice One is awful). Word on the street is that Guardian might win this race though.

 

[Lloyds of Lubbock]

Mass LTC rider is not an indemnity rider as Guardian's is.
Guardian's rider also is tax qualified.
If you elect the full full benefit and go on claim Guardian will waive the full premium.
Mass illustrates better, Guardian has better contractual benefits.

 

[Justin Bilyj]

If you elect the full full benefit and go on claim Guardian will waive the full premium.

Mass' waiver of premium covers the LTCAccess rider costs - and since most agents sell wp for permanent products, I would venture that's a moot point...

 

[Lloyds of Lubbock]

Really?
As waiver of premium expires at age 65 and most LTC claims happen after this how is it a moot point?
If I am 70 years old and have an LTC claim, the fact that the premium is waived is an important point to me.

 

[Justin Bilyj]

Really?
As waiver of premium expires at age 65 and most LTC claims happen after this how is it a moot point?
If I am 70 years old and have an LTC claim, the fact that the premium is waived is an important point to me.

Good point - thanks for adding some value being a new forum member!

 

[Lloyds of Lubbock]

Thank you
I think open forums are a great way to share information.