During the last week we have worked on dozens of life, long term care, disability and annuity cases working alongside our Advisers.
If you are not discussing these issues with your clients, then who will?
Westland is here to help you protect your clients, their, families, their businesses and their portfolio.
I know we keep harping on the don’t procrastinate theme, especially when discussing protection strategies, but these cases keep coming.
Advisor & Client (Widow, Female Age 58) wanted to reposition up to $200,000 to address LTC risk. Many options were researched for consideration and the recommendation came down to Nationwide CareMatters with 5% inflation or John Hancock Life with LTC Option. When comparing these options, CareMatters would provide a larger pool of potential benefits paid over a 6 year period in her mid 80’s and John Hancock would give her a much higher death benefit and monthly LTC benefit. In short, CareMatters would be better should she need care over an extended 5-6 year period and John Hancock would be much better for a shorter expensive need or if no care was needed.
When presented, the Client did not want to commit. The agreed to discuss again at a future meeting.
We let the advisor know that the likelihood of things getting less expensive is almost nil. Products like this are priced based on nearest age, current rates and current health. You can lock these in now.
Sometimes it may be a good process to suggest…
First, let your client know that you fully understand them and respect their wishes to wait. However, let them know that it is your job to make recommendations in their best interest. Suggest… How about this? Let’s go ahead and see if you can qualify as expected. The underwriting process may take 4-6 weeks or longer and then we still don’t have to commit funds for an additional 30-60 days. You are in control to move forward or not. If you wait 60-90 days to start the process, then the insurance company remains in control or your health and pricing could change.
Just a thought.
Advisor and Client have been discussing LTC protection options for a couple of years and other priorities got in the way of making this happen. Now at age 76, it’s a priority again and we got the call to see what was available. Client is a Female age 76 with a few health issues. Because of Covid-19, most of our go to carriers were out, primarily because of age, though the health issues would have made any offers rated or a decline. The good news is we still had an alternative through StateLife/One America with AnnuityCare. Client could commit $125,000 as deposit into AnnuityCare. The deposit is made into an annuity that grows over time with a 36 month LTC benefit. In this case the initial monthly benefit was $3,290 monthly. This client was also eligible for a 36 month Continuation of Benefit (COB) Rider. The COB could be purchase in a single payment of $11,498 or annually at a cost of $1,130.
Client at age 55 got laid off and was very ill. He was beginning the process of applying for Social Security Disability Benefits. However, the eligibility criteria for these benefits are somewhat tough to overcome. In the meantime, client needed to supplement income from his savings and 401(k). Advisor requested assistance to roll over 401(k) of $325,000 into a solid fixed indexed annuity with the priority being potential accumulation. In addition, we wanted to offer a carrier and product that would allow for 72(t) distributions if needed since the client was younger than age 59 1/2.
We settled on the Athene Performance Plus annuity that offers several quality uncapped index options. This annuity has two sets of indexes, those with fees and those with no fees. We shared these two flyers that will help determine the mix of indexes selected.
Call for assistance with a case today.