Thought for the day:

Don’t buy a putter until you’ve had a chance to throw it.

Does it really matter who said this first?

If you will read no further:

There is important news at the bottom about LTCi.  And now all you have to do is call us with your client’s info, we will design the best product strategy for the situation then help you with the presentation if you like, and then we will take the application, underwrite the case and send you a policy ready to deliver.  See attached and call us.

Thought for the week:

My radio woke me this Sunday morning to another financial show.  I don’t need to get up that early, but I never want to miss the investment advisors promoting their service.  This weekend I was on a local show promoting MoneyGuard and a series of seminars on long-term care, so I understand the process.*  As I lay there listening to these guys discussing index annuities (FIAs), it occurred to me that I should mention it to you because it is such a good story and they are almost outselling variable annuities.

You see, people are OK with giving up some of the “upside” in exchange for “no losses”.  Certainly, the past 10-15 years proves that avoiding losses trumps occasional big gains.

Currently though, it’s all about the Guaranteed Income Riders in VAs and FIAs.  That’s what folks want….to know what their future income will look like…at least some of it.

This is not an either/or discussion.  I know it’s difficult for some advisors to see the value in FIAs that limit the upside.  So they use VAs that require a conservative investment mix in order to  provide the costly GIR that most attracts the client in the first place.

Here is a thought.  Present a combination of the two to your clients.  The FIA will give the client the certainty of a growing retirement income base (at half the cost of the VA) while guaranteeing their principal. The rest invested in the VA without all the riders allows for the potential gains from a well-managed investment portfolio.

I just can’t help but believe the upside potential of the FIA (with the downside protection) is a lot better for the client then any bond at this point.  Cheaper too!

*If you would like me to do a radio show, or a client seminar for you, just let me know.  When folks hear the story, they all want the product.  Remember, “Everyone will buy long-term care insurance if they don’t have to pay for it.”

News you can use:

The leading LTC insurers have all filed (or will soon be filing) for sex distinct rates.  Those that have not will likely face some anti-selection (assuming their rates are lower) that will certainly cause concern; prompting them to follow suit. Since women account for 65 percent of all new claims, the anticipated increase in female rates is from 20% to 40% for widows and singles.  It stands to reason that you should bring this up to your clients who have not yet addressed this issue or have been “thinking about it”.  There is still some time to acquire insurance at the current non-sex distinct rates.