Year-End Opportunities To Engage Clients for Long-Term Care Planning!!
It's hard to believe we enter the 4th quarter of 2019 next week! If that means you're going to begin year-end planning discussions with clients, it may be a good idea to put Long-Term Care (LTC) Planning on the agenda.
Some of today's most popular LTC Planning solutions, known as "linked benefit" or "hybrid" products, are built on a life insurance chassis and this means those solutions must comply with new NAIC principle-based reserving (PBR) regulations effective January 1, 2020.
Based on some of the carriers' product "re-launches" or "updates", we have seen some significant negative impacts on premiums, cash accumulation, and policy performance relative to those carriers' older products. This means the 4th quarter could be a great opportunity to be proactive and provide your clients with today's most attractive LTC Planning solutions, which will give them current, preferential pricing.
Here's a recent sample case to see how this might look: An advisor discussed LTC Planning with Sally; a widowed, retired female client who would otherwise pay for LTC using funds she keeps at her local bank. Sally liked the idea of a single-premium solution so we provided the advisor a case design for Sally which included some of our most popular carriers. The illustrated for the preferred solution would provide a $7,500 per month LTC benefit, a 48-month benefit duration, with a full Return of Premium guarantee assuming a $134,529 single-premium.
Sally liked everything about the plan, but she planned to be traveling throughout the fall and wasn't sure if she wanted to take the time to complete the process in 2019. The advisor then explained that waiting until 2020 would increase the plan cost by nearly $155,000! Simply letting Sally know about that extra $15,000, was enough to motivate her to complete the process and implement the LTC planning solution she wanted anyway.
Please contact INERTIA to discuss LTC Planning cases you're working on and feel free to use the following resources to start the process or engage your clients: