During the last few weeks 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?
Case 1
Single Female age 70 in good health. Her son has a thriving business and wanted to make sure mom had a solid long term care protection strategy in place. He wanted to commit $100,000 to take care of mom, make sure she had quality of life should a need present itself and to make sure that he and his wife remained care coordinators and not care providers.
We looked at several alternatives – the top 4 were.
1) MoneyGuard with an inflation rider (7 year benefit period)
2) MoneyGuard with a level benefit (6 year benefit period)
3) ForeCare Annuity (6 year benefit period)
4) John Hancock with the LTC Rider (25 month benefit period at max monthly available)
Monthly Benefits:
1) $2,478 at start rising at 3% – max LTC benefit pool $354,929 at age 85
2) $3,879 at start and level – max LTC benefit pool $279,288
3) $4,167 at start and level – max LTC benefit pool just over $300,000
4) $10,623 at start and level – max LTC benefit pool $265,585
In our analysis and after discussions with the client we recommended the John Hancock option.
If mom died in her sleep with no LTC event – $100,000 becomes $265,585
If mom has a typical LTC event at age 85 with a hypothetical cost of $8,000 per month, the John Hancock benefit would last 33 months with no other out of pocket expense. The exposure is for a longer LTC event.
With the other choices, this same hypothetical LTC event at $8,000 monthly, would require about $4,000 per month out of his portfolio to supplement the LTC benefit payments. Over the first 33 months, he would have had to spend about $132,000 additional. This same $132,000 would extend the John Hancock benefit by another 16 months or so.
All in all, choices 1-3 were beneficial only when there was a longer duration event of over 4 years. A shorter duration or no LTC event and John Hancock was clearly more advantageous.
Call Westland to help you research options and make a recommendation for you. We won’t just send you illustration after illustration.
Call Westland about a case today and let us go to work for you.
Call or E-mail Nancy Woo to discuss a life or LTC case today.
E-Mail: Nancy Woo
(800)238-8144 x103
Call or E-mail Sean Sahin to discuss an annuity or LTC case today.
E-Mail: Sean Sahin
(800)238-8144 x120
Tim Morton, CEO, anytime about any case or marketing program
E-Mail: Tim Morton
(800)238-8144 x127
Your Westland Team