I threw together a basic schedule of the type of clientele that would be more appropriate for which of the abovementioned LTC options based on my knowledge. I'm a licensed P&C agent but am learning everything I can about life and LTC, so feel free to tear this apart if I have some apparent gross misunderstandings
WL w/ LTC Rider
- In good health and/or planning very far ahead
- Not much cash surplus currently; still building and saving
- No other (or very little) legacy to leave to heirs. The DB of this policy would be the largest by far
- No immediate or likely need for LTC but wants protection just in case
- Interested in cash value component as part of a larger investment portfolio. May need to access it before retirement stage hits
- Currently more concerned over legacy left to heirs than additional retirement income
- Generally speaking, the lower or middle income type of client
Traditional Deferred/Fixed Annuity
- A little later in life but years from retirement, potentially some health concerns
- Has a chunk of cash available now -or-
- Has excess income to put into deferred and wants it tax-deferred
- Doesn't need access to cash until at least retirement
- Medium-term planning ahead
- Has other assets for legacy, has other investment contributions for legacy
- Wants additional retirement income stream if no ultimate need for LTC
- Generally speaking, the middle or higher income type of client
Immediate, Medically-Underwritten Annuity
- Has health problems already
- Large cash chunk saved and allocated to be used for LTC or similar expenses, but is concerned over longevity risk
- Very likely to need LTC, very aware of this
- Crisis planning
- Plenty of other assets to leave as legacy
- Generally speaking, the high or very high income type of client