My intention this year is to deliver valuable content more frequently that you can use to your advantage when helping families plan for long-term care.
What a 2013 we have had! The LTCi industry saw many more changes that ultimately will lead to our industry becoming more stable for everyone in its function and its product offerings. At the same time, it's imperative that we continue to look for alternate ways to manage the LTC risk, and that's how I've been spending much of my time.
For example, I'm looking at a number of annuities that provide long-term care benefits. Why annuities? Because underwriting has become rather challenging, and many of you would say that is an understatement! So I am looking at annuities with limited or no health questions with some exciting results. Some in particular allow the annuitant to enjoy extraordinary market growth with no risk of loss. After I've sold a few more of these, I'll share that information with you.
In the meantime, here is an example of how the OneAmerica Annuity Care II product works, courtesy of Patrick Bryan at OneAmerica (Patrick.Bryan@OneAmerica.com) for a person who is able to self-fund about half of her LTC needs:
- Female age 70.
- $100,000 deposit in Annuity Care II which provides a total Initial benefit of $353,359
- Initial long-term care monthly benefit $3,681 for 24 months – this is the base annuity.
- Benefits will continue at least 72 months after the base is exhausted
- This provides a total of at least 96 months with 5% compound inflation on the benefit extension.
- I'm saying "a minimum of" because this is a reimbursement policy...any monthly amount not used remains in the pool.
15 Years later she has a claim.
At age 85, first 24 Months Benefit on base is still $3,681
Next 72 months at age 87 the monthly benefit is: $8,172
Total combined benefit at age 85: $621,601
In a nutshell, the 70 year old prospect leveraged her $100,000 3 to 1 immediately and 6 to 1 in 15 years.
Now, as good as this sounds, obviously you would want to look at other resources and make sure she can truly afford to self-insure the difference between her benefit and the cost of care in 15 years, which in most parts of the country will be about $13,500 a month. There are limited health questions on this product.
My little book The ABCs of Long-Term Care Insurance addresses combo products like this one. It has had nearly 50,000 copies printed in just a few years and helped agents sell hundreds of thousands in premium for agents all across the country is on sale at a 5% discount until February 7th!
Would you spend a few dollars to get a $1000+ commission? In preparation for 2014, one company just purchased 20,000 customized copies for their agents! Don't miss your chance to make an impact with all of your clients' families that will be hit by the caregiving tidal wave that's coming.
Let's work together so we can help the industry become more stable by spreading the risk and getting hard-working Americans the valuable coverage they deserve and make 2014 a breakthrough year!