Hybrid/LTC Products & LTC Rider Options: The First in a Series of ONE Ideas
By now, you have probably heard that our AgencyONE Annual Advisor Conference starts in a little under a week on April 28th-30th in Washington, DC. We’ve put together a great Agenda full of excellent speakers who will talk about sales ideas and topics that will elevate your practice and benefit your clients throughout 2024 and beyond. If you haven’t registered yet, you still can through our meeting website. We hope to see you there!
I will be presenting a breakout session on Sunday, April 28 at 4:00pm that focuses on Hybrid / LTC products and LTC rider options. This ONE Idea will give you some advance information on that topic and explore the current Hybrid / LTC products in the marketplace. I will also discuss this subject in more detail in the next few ONE Ideas and explain their specific product benefits, competitive cells, and the sales ideas that have been successful for our AgencyONE 100 advisors.
The following information summarizes basic product specs and features which will help you identify the products that may be right for your client(s).
Lincoln Moneyguard
- Reimbursement LTC contract
- Issue ages: 40-80 years old (age last)
- Individual and Couple discounts are available; both clients do not need to apply to obtain the couples discount
- Premiums: Single pay up to 10 yrs based on client age
- Benefit years: 3 to 6 years
- Minimum / Maximum Death benefit: $50,000 / $500,000
- Inflation Options: 3% or 5% compound increase
- Return of Premium Options: 70% of premiums paid for Basic; 100% of premiums paid after year 10 for Vested
Contact our Case Design team to discuss the interesting additional features that come with the contract such as Terminal Illness Rider, Flex Care Cash, and the Benefit Transfer Rider.
Nationwide Carematters II
- Indemnity LTC contract
- Issue ages: 30-70 years old (age last)
- Underwriting class: Non-Tobacco Single, Tobacco Single, Nontobacco Couple, Tobacco Couple. Both clients do not need to apply to obtain the couples discount
- Premiums: Single pay, 5-pay, 10-pay, Pay to 65 (ages 30-54) Pay to 100 (ages 30-65)
- Benefit years: 2-7 years
- Minimum/Maximum Death benefit: $60,000 / $500,000
- Inflation Options: 3% simple, 3% and 5% compound increase, LTC Indexed Rate Inflation Protection Rider
- Return of Premium Options: Minimum refund with Max LTC benefits, Vested option
Contact our Case Design team to discuss the available designs for clients using compound benefits to show additional value in the future. Also, ask about using the product with our split 1035 sales idea.
Nationwide Carematters Together
- Indemnity LTC contract
- Issue ages: 30-70 years old (age last)
- Maximum age difference between insureds is 25 years with a Preferred rating, 10 years with a Standard rating
- Underwriting class: Each Insured can have a separate class – Non-Tobacco Preferred, Tobacco Preferred, Non-Tobacco Standard, Tobacco Standard
- Premiums: Single pay, 5-pay, 10-pay, 20-pay, Pay to 100 (options available are based on oldest insured’s age)
- Minimum / Maximum Monthly Benefit: $1,500 / $20,833
- Benefit Months: This product allows the clients to purchase a specified number of benefit months – 48, 72 or 96 payments
- Inflation Options: 3% compound for life, 3% compound for 20 years, 5% compound for life
- Return of Premium Options: Minimum refund with Max LTC benefits, Vested option
Contact our Case Design team to see how this product compares when purchasing a set number of benefit months. It also offers a great way to insure two lives.
OneAmerica
- Reimbursement LTC contract
- Asset Care: Single and Joint; Single Premium and Recurring Premium are available
- Issue Ages: 35-80 years old with a maximum 25-year age difference between joint insureds
- Underwriting class: Non-Tobacco, Tobacco, Table Ratings Available – TBL 5, TBL 6 or TBL 8
- Premiums: Single Pay, 5-pay, 10-pay, 20-pay or Pay to 95
- Benefit Periods: 25 months with COB extension of 25 or 50 months, 33 months with COB extension of 33 months, 50 months with COB extension of 50 months, and Lifetime
- Minimum Face Amount: $50,000
- Inflation Options: 3% and 5% compound
This product offers the most pay period options. Contact our Case Design team to discuss client rating options and OneAmerica’s pre-packaged product offering that uses qualified funds to pay for both individual and joint policies.
Securian SecureCare III
- Indemnity LTC contract
- Issue ages: 40-75 years old (age last)
- Underwriting class: Non-Tobacco Single, Tobacco Single, Non-Tobacco Couples, Tobacco Couples; both clients do not need to apply to obtain the couples discount
- Premiums: Single pay, 5-pay, 7-pay, 10-pay, 15-pay (options available are based on insured’s age)
- Benefit years: 4-8 years
- Minimum / Maximum Death benefit: $50,000 / $500,000
- Inflation Options: 3% and 5% simple. 3% and 5% compound increase
- Return of Premium Options: Vesting (100% refund), 75% (75% refund of premium) and LTC boost (smaller surrender value but max LTC benefit)
Contact our Case Design team to discuss this very competitive product, its applications for clients looking to utilize the compound feature, and its three options for reimbursement.
To help make this information more accessible, we are compiling a list of all the carrier product details into a quick reference spreadsheet which will be housed on our website and available to our AgencyONE 100 advisors. Remember, the next few ONE Ideas will highlight these products in more detail along with some of the important sales niches for each product.
If you are already registered for our conference, we look forward to seeing you. If you haven’t, you can still register on our event website HERE!
Please contact the AgencyONE Case Design Team at 301.803.7500 for more information or to discuss a case. If you have any questions about our Annual Conference or need help getting registered, please contact Lisa Mitchell at 301.803.7504.
