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
Couple ages 61 and 56 doing well living in the bay area. As part of their annual review their Advisor had an agenda item to review and present options to address LTC risk. In the past, they had deferred the discussion to a future meeting, but the time was now. Their Advisor was more determined to have the discussion and put a plan in place to fulfill his planning obligation to this couple who were “A” Clients.
We explored “asset based” options with a budget of $150,000.
MoneyGuard $78,000 for him and $83,000 for her created a $4,500 monthly benefit with 3% inflation growth. The pool of benefits started out at $350,000. By age 85 the monthly benefits would be over $10,000 monthly with a pool available over $820,000 for her – 10X leverage on her initial deposit. Death benefit never less than $108,000 each (more than their initial deposit).
Asset Care $154,000 deposit for joint life protection would provide monthly benefit of $9,000. The lifetime Continuation of Benefits (COB) rider was an additional $2,441 annual creating an unlimited pool of benefits. Over 30 years that rider expense would be over $73,000. Joint life Death Benefit of $300,000 if care not needed.
John Hancock – Life with LTC Rider. $80,000 for him and $70,000 for her would create death benefits (DB) of $257,000 for him and $302,000 for her. The DB is liquid for LTC at $10,000 monthly for him and $12,000 monthly for her. All unused DB goes to heirs.
Traditional LTCi – For $4,879 monthly they would each have a LTC policy that would provide a $4,500 monthly benefit for 4 years growing at 3% annually. With no rate changes, they would spend about $146,000 over 30 years. No Death Benefit if care was not needed.
Tough decision since each option has its benefits and you could make a good case recommendation. The eventual decision for this case was to go with MoneyGuard. Mainly because of reputation, guarantees, application process and individual benefits with a DB available to survivor if care not needed.
Call Westland about a case today and let us go to work for you.
Call or E-mail Nancy Woo to discuss a life case today.
E-Mail: Nancy Woo
(800)238-8144 x103
Your Westland Team