During the last few weeks we have worked on dozens of life, long term care, disability and annuity cases working alongside our Advisors.
If you are not discussing these issues with your clients then who will?
Case 1
Couple ages 59 and 58 actually called with a request for long term care protection after thinking they have done pretty well, but that LTC was one hole in their plan they haven’t addressed yet. This goes to show, that if you are not mentioning LTC you may be missing the boat. Your clients are thinking about these risks.
Options presented:
State Life One America (A+) AssetCare I (joint life)
1) Deposit $100,000 will generate $6,375 monthly benefit each (3% option)
Second-to-die death benefit of $212,508
Lifetime benefit extension cost $1,729 annually
2) Deposit $100,000 will generate $8,443 monthly benefit each (4% option)
Second-to-die death benefit of $211,063
Lifetime benefit extension cost $2,927 annually
3) Deposit $150,000 will generate $6,509 monthly benefit each (2% option)
Second-to-die death benefit of $325,457
Lifetime benefit extension cost $1,091 annually
John Hancock (A+) Protection UL with LTC Rider (individual life)
1) Him $300,000 death benefit and LTC benefit of $6,000 monthly (50 months)
Cost is $5,614 annually Standard Plus Non-Smoker rate
2) Her $300,000 death benefit and LTC benefit of $6,000 monthly (50 months)
Cost is $4,085 annually Standard Plus non-Smoker rate
John Hancock (A+) Protection UL with LTC Rider (individual life)
1) Him Single deposit $75,000 provides $257,387 death benefit
Provides LTC benefit of $10,295 monthly (25 months – 4% option)
2) Her Single deposit $75,000 provides $313,823 death benefit
Provides LTC benefit of $12,553 monthly (25 months – 4% option)
Lincoln (A+) MoneyGuard – Single deposit $75,000 each 6 year benefit 3% inflation
1) Him – minimum death benefit of $99,344 at ages 70+
Provides LTC benefit of $8,927 and benefit pool of $692,910 at age 85
2) Her – minimum death benefit of $90,749 at ages 78+
Provides LTC benefit of $8,399 and benefit pool of $651,950 at age 85
Which of these is best?
Once explained:
Some clients are fearful of a long term dementia and lifetime benefits really resonate – recommend State Life.- Also has money back guarantee from day one.
Some clients like the higher death benefit offered by John Hancock should care not be needed.
Some clients are more concerned about having a higher LTC benefit in the future and an inflation option is the way to go -recommend Lincoln
Many other options can be considered in a case like this including traditional LTC with no death benefit or money back guarantees. If the funding source was another annuity or IRA, then State Life would be on top of the list. There are also LTC annuities to consider should there be health issues or large deferred annuity gains that can be used for long term care on a tax free basis.
Partner with Westland to help you figure this all out and be by your side if needed when presenting solutions to your clients.
Hopefully you are thinking of clients where you can add real additional significance and value to their family with protection and legacy strategies.
Call for your personalized case designs today. We are here at your service.