LTC insurance basic questions

[ValeRosso]

This is something I don't know much about, but increasingly I get asked about it and want to guide people in the right direction.

Is it "worth it" for your average 65 year old to get LTC insurance? With nursing home prices so high, does it make sense to get LTC insurance? How do you determine the best options for LTC?

What are good companies to use? How are the rate increases with these polices over time?

Thanks for your time

 

[Tahoe Ray]

This is something I don't know much about, but increasingly I get asked about it and want to guide people in the right direction.

Is it "worth it" for your average 65 year old to get LTC insurance? With nursing home prices so high, does it make sense to get LTC insurance? How do you determine the best options for LTC?

What are good companies to use? How are the rate increases with these polices over time?

Thanks for your time

Traditional LTC is still around but somewhat out of favor.

Work with an IMO who specializes on this stuff. They can give you a lot of guidance.

Almost everyone (that I know) sells life and/or annuity hybrids (which are a combination of self-insuring and buying insurance to protect beyond that).

It's definitely worth it. You can write people well into their 70s with annuity hybrids and give incredible (3-1) leverage on assets that they're willing to commit.

They have to have assets to protect though...

 

[yankee466]

Well...I sell lots of traditonal LTC policies with carriers like Mutual of Omaha, NGL, etc...as well as hybrids with One America, Nationwide, etc. There is also life insurance with LTC riders...there are annuity products that double/triple in value for LTC needs. Lots of good short term plans that do way more than advertised too.

The challenge is by waiting to age 65 (too late for most BTW) is it gets pricey and health conditions often get in the way.

If you are working the 65 market, its going to be folk who would get Medicare Supplements...not MAPD. This is a middle class, upper middle class product in general.

If this is something you only plan to dabble in, it may be best to partner with someone who does what I do...which is focus on the topic, and either split commission or get referral fees.

Else, lots of good FMO's you can work with if you plan to truly focus on it.

 

[Tahoe Ray]

Mutual of Omaha, NGL, etc

The "etc." part is the hard part. There just aren't a ton of carriers left in the space and the pricing gets so high for 65+ that hybrids look more attractive in a lot of cases.

 

[yankee466]

The "etc." part is the hard part. There just aren't a ton of carriers left in the space and the pricing gets so high for 65+ that hybrids look more attractive in a lot of cases.

The more loose change the client has under their sofa cushions, the more attractive hybrids become . Else, hybrids translate into a loss of investment potential for some…and a monkey can get a 6% return under Bidenomics

 

[Tahoe Ray]

The more loose change the client has under their sofa cushions, the more attractive hybrids become . Else, hybrids translate into a loss of investment potential for some…and a monkey can get a 6% return under Bidenomics

Then buy a GUL w/ a true LTC rider. They're normally north of 6% tax-free IRR to life expectancy.

I find the opposite. The more money a client has, the more likely they are to choose a hybrid with their "dead money".

It doesn't really matter though. Having LTC (as long as you have assets) is still a good thing.

 

[ltcadviser]

Hi Vale, when you work with your clients, review their income and assets, and the cost of care where they live. Determine if they are comfortable paying the cost of care out of their own pocket or wish to have some insurance to cover some or all of the cost of care. Once you have discussed these issues with your clients and they tell you how much coverage they will like to have, you may share the available options with them to solve their concerns. Good companies for you to work with are Mutual of Omaha, Securian, OneAmerica, Nationwide, NGL and Lincoln. All of your long term care insurance information is here.