The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc...
Transcript of The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc...
![Page 1: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/1.jpg)
Spring Conference Iselin, NJ
May 3, 2018
The Ever EvolvingLong Term Care Marketplace
Presented by: Mark D. Milbrod, CLU
PROPERTY OF AGENT SUPPORT GROUP
![Page 2: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/2.jpg)
What we’ll be covering…
Myths about Long Term Care
The Long Term Care Dilemma
Portfolio Invasion Planning
The Long Term Care Quandry
The New Long Term Care Marketplace
Product Designs
Types of Benefit Payouts
Utilizing Policy Audits
Planning Opportunities
PROPERTY OF AGENT SUPPORT GROUP
![Page 3: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/3.jpg)
Qualifying BenefitsCognitive Impairment
Indemnity Benefits
Section 101(g)
LONG TERM CARE
Plan of Care
Informal Care
Blended Life Products
Section 7702
ADL’s
Stand Alone
Nursing Home Care
Facility Care
Chronic Illness
Reimbursement Method
Home Health Care
PROPERTY OF AGENT SUPPORT GROUP
![Page 4: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/4.jpg)
Health Insurance or Government Programs Will Pay For It
COMMON CONSUMER RESPONSE REGARDING LTC
PROPERTY OF AGENT SUPPORT GROUP
![Page 5: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/5.jpg)
PROPERTY OF AGENT SUPPORT GROUP
![Page 6: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/6.jpg)
Health Insurance will cover Doctor and Hospital bills
Medicare covers Short-Term Nursing Home Care
Medicaid only pays if assets are limited
THE REALITY…
PROPERTY OF AGENT SUPPORT GROUP
![Page 7: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/7.jpg)
SO, IF THERE WAS A LONG TERM CARE EVENT, WHERE WOULD YOU GO
TO WRITE THE CHECK?
PROPERTY OF AGENT SUPPORT GROUP
![Page 8: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/8.jpg)
SO, IF THERE WAS A LONG TERM CARE EVENT, WHERE WOULD YOU GO
TO WRITE THE CHECK?
PROPERTY OF AGENT SUPPORT GROUP
![Page 9: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/9.jpg)
70% OF PEOPLE OVER 65 WILL NEED AN AVERAGE
OF $250,000 FOR LTC EXPENSES
![Page 10: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/10.jpg)
ALMOST 50% OF CHILDREN OF RETIREES EXPECT TO
EVENTUALLY TAKE CARE OF THEIR PARENTS
![Page 11: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/11.jpg)
BY 2030, THERE WILL BE OVER 72 MILLION OLDER AMERICANS.70% OF WHICH WILL REQUIRE SOME TYPE OF LONG TERM CARE &
OVER 40% WILL NEED A NURSING HOME AT SOME PERIOD IN TIME.
Are you ready for
The Silver Tsunami?
![Page 12: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/12.jpg)
72 MILLION BOOMERS
• WHERE WIL THE MONEY COME FROM ?• WHAT ABOUT RETIREMENT ASSETS ?• WHAT ABOUT THE CAREGIVERS ?• WILL THIS TEAR FAMILIES APART ?
![Page 13: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/13.jpg)
Portfolio Invasion Planning
PROPERTY OF AGENT SUPPORT GROUP
![Page 14: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/14.jpg)
PROPERTY OF AGENT SUPPORT GROUP
![Page 15: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/15.jpg)
LONG TERM CARE QUANDRY
95% Sticker Shock
No Action
PROPERTY OF AGENT SUPPORT GROUP
![Page 16: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/16.jpg)
ONE LTC EVENT CAN BE CATOSTROPHIC !
ONE EVENT CAN WIPE OUT 95% OR MORE OF YOUR ASSETS
PROPERTY OF AGENT SUPPORT GROUP
![Page 17: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/17.jpg)
BEFORE YOU KNOW IT…
THE MONEY CAN BE GONE !!!
PROPERTY OF AGENT SUPPORT GROUP
![Page 18: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/18.jpg)
THE GOAL IS TOO STRETCHOUT THE DOLLAR
AS FAR AS WE CAN ANDGIVE THE MOST FLEXIBILITY !!!
PROPERTY OF AGENT SUPPORT GROUP
![Page 19: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/19.jpg)
AVERAGE NATIONAL COSTS OF LTC/CHRONIC CARE COSTS IN THE UNITED STATES:
$223/DAY FOR A SEMI-PRIVATE ROOM IN A NURSING HOME ($80,300/YEAR)
$253/DAY FOR A PRIVATE ROOM IN A NURSING HOME ($91,250/YEAR)
$3,600/MONTH FOR ONE BEDROOM UNIT IN AN ASSISTED LIVING FACILITY ($43,200/YEAR)
$30/HOUR FOR A LICENSED HOME HEALTH AIDE SERVICES ($43,200/YEAR AT 4 HOURS/DAY)
![Page 20: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/20.jpg)
78 MILLION BABY BOOMERS WILL RETIRE OVER THE NEXT TWO DECADES
ABOUT 70% OF AMERICANS OVER AGE 65 WILL REQUIRE SOME TYPE OF CHRONIC CARE SERVICES DURING THEIR LIFETIME
15 MILLION AMERICANS CURRENTLY PROVIDE UNPAID CARE TO ADULTS WITH ALZHEIMER’S OR ANOTHER DEMENTIA (22 HOURS PER WEEK ON AVERAGE)
80% OF CARE PROVIDED AT HOME IS DELIVERED BY FAMILY CAREGIVERS
LESS THAN 10% OF OLDER ADULTS RECEIVE ALL THEIR CARE FROM PAID WORKERS
PROPERTY OF AGENT SUPPORT GROUP
![Page 21: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/21.jpg)
TRADITIONAL STANDALONE
LIFE INS.WITH LTCR/CIR
(IND. or SUR.)
BLENDED LIFE SINGLE OR MULTI PAY
ANNUITYBASED
PRODUCTS
THE LTC MARKETPLACE
PROPERTY OF AGENT SUPPORT GROUP
SELF INSURE
![Page 22: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/22.jpg)
CLAIM TRIGGERS(REGARDLESS OF PLAN)
PROPERTY OF AGENT SUPPORT GROUP
2 OF 6 ADL DEFINITION BATHING EATING CONTINENCE
TOILETING DRESSING TRANSFERRING
OR COGNITIVE
![Page 23: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/23.jpg)
TWO TYPES OF CLIENTS
PROPERTY OF AGENT SUPPORT GROUP
WEALTH PRESERVATION
WEALTH CREATION
RISK MANAGEMENT
![Page 24: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/24.jpg)
LTC PRODUCT BREAKDOWN
PROPERTY OF AGENT SUPPORT GROUP
TRADITIONAL STANDALONE
CARRIER CONTRACTION
ABOVE EXPECTED CLAIMS EXPERIENCE
LARGE PREMIUM INCREASES
CONSTANT REVIEW
NON‐GUARANTEED
USE IT OR LOSE IT
![Page 25: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/25.jpg)
LTC Policy LTC Rider
Very Costly
Not Guaranteed
“Use it or lose it”
No Residual Benefit
Reimbursement
Limited Benefit
![Page 26: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/26.jpg)
LTC PRODUCT BREAKDOWN
PROPERTY OF AGENT SUPPORT GROUP
LIFE INS.WITH
LTCR/CIR(IND. or SUR.)
MORE USER FRIENDLY
GUARANTEED PREMIUM
EASY MAINTENANCE
NO LONGER USE IT OR LOSE IT
BENEFIT LEVERAGING
EASIER ACCESS TO BENEFITS
![Page 27: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/27.jpg)
Modernize LTC Solutions Hybrid uses for retirement needs Full circle – Self completing Adds extra dimension 2 of 6 ADL Definition
(Bathing,Eating,Continence,Toileting,Dressing,Transferring or Cognitive)
Sub-standard LTC??? Survivorship Options
Long Term Care & Chronic Illness Riders…
PROPERTY OF AGENT SUPPORT GROUP
![Page 28: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/28.jpg)
LTC Policy LTC Rider
Very Costly
Not Guaranteed
“Use it or lose it”
No Residual Benefit
Reimbursement
Limited Benefit
Affordable
Guaranteed
Death Benefit
Indemnity Style Benefit
Multi‐use
Flexibility
PROPERTY OF AGENT SUPPORT GROUP
![Page 29: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/29.jpg)
LTC Rider ADB for CIR
§ 7702(b)
Pays on Temp or Perm claims
State CE usually required
Residual Death Benefit
Indemnity or Reimbursement
§ 101(g)
Typically only Perm claims
No State CE to sell
Residual Death Benefit
Indemnity only since reimbursement not possible
![Page 30: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/30.jpg)
PROPERTY OF AGENT SUPPORT GROUP
REIMBURSEMENTv.
INDEMNITYBENEFITS
![Page 31: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/31.jpg)
LESS THAN 10% OF OLDER ADULTS RECEIVE ALL THEIR CARE FROM PAID WORKERS
PROPERTY OF AGENT SUPPORT GROUP
![Page 32: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/32.jpg)
PROPERTY OF AGENT SUPPORT GROUP
INDEMNITYBENEFITS
AND INFORMAL CARE
![Page 33: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/33.jpg)
PROPERTY OF AGENT SUPPORT GROUP
In 2016, there were 15.9
Million Informal Caregivers
Providing 18.2 Billion Hours of
Unpaid Care
The equivalent cost of this care was
$230.1Billion
The Emotional, Physical &
Financial Cost of This is Staggering
ALZHEIMER’S & DEMENTIA
![Page 34: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/34.jpg)
PROPERTY OF AGENT SUPPORT GROUP
ALZHEIMER’S & DEMENTIA
THAT AMOUNTS TO 1,145 HOURS/CAREGIVER OR SIMPLIFIED EVEN FURTHER, 22 HOURS/WEEK
POST DIAGNOSIS, THE AVERAGE ALTHEIMER’S/DEMENTIA PATIENT HAS A LIFE EXPECTANCY OF 8 ‐ 10 YEARS
![Page 35: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/35.jpg)
PROPERTY OF AGENT SUPPORT GROUP
ADDITIONAL FACTS ASSOCIATED WITH ALZHEIMERS AND OTHER TYPES OF DEMENTIA
MORE THAN 5 MILLION AMERICANS ARE LIVING WITH ALZHEIMER‘S AND BY 2050 THAT NUMBER COULD RISE AS HIGH AS 16 MILLION.
TWO THIRDS OF CAREGIVERS ARE WOMEN, OF WHICH 34% ARE AGE 65 OR OVER.
ONE QUARTER OF CAREGIVERS ARE PART OF THE “SANDWICH GENERATION.”
35% OF CAREGIVERS HAVE DIMINISHING HEALTH DUE TO THE STRAIN PUT ON THEM.
![Page 36: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/36.jpg)
PROPERTY OF AGENT SUPPORT GROUP
REIMBURSEMENT v. INDEMNITY BENEFITS
![Page 37: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/37.jpg)
PROPERTY OF AGENT SUPPORT GROUP
REIMBURSEMENT v. INDEMNITY BENEFITS
+ =2YR
6YR
4YR
Company X = $5,000/mo. INDEMNITY ($360k Pool)Company Y = $6,000/mo. REIMBURSEMENT ($432k Pool)$3,500/mo. HHC Claim (40hrs. x $20/hr.)Average Claim = 4‐5 Years
$
$120k$84k
$240k$168k
$360k$252k
![Page 38: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/38.jpg)
PROPERTY OF AGENT SUPPORT GROUP
Total Total
Annual DB/LTC Max Mo. ISSUE Annual DB/LTC Max Mo.
Premium Pool LTC Ben. AGE Premium Pool LTC Ben.
3,468 360,000 7,200 45 4,284 500,000 10,000
4,173 360,000 7,200 50 5,307 500,000 10,000
5,339 360,000 7,200 55 7,062 500,000 10,000
7,120 360,000 7,200 60 9,075 500,000 10,000
Total Total
Annual DB/LTC Max Mo. ISSUE Annual DB/LTC Max Mo.
Premium Pool LTC Ben. AGE Premium Pool LTC Ben.
2,842 360,000 7,200 45 3,724 500,000 10,000
3,693 360,000 7,200 50 4,766 500,000 10,000
4,543 360,000 7,200 55 6,218 500,000 10,000
6,059 360,000 7,200 60 7,949 500,000 10,000
MALE ‐ PNT SAMPLE RATES ‐ GUAR. TO AGE 100
FEMALE ‐ PNT SAMPLE RATES ‐ GUAR. TO AGE 100
Sample Rates: Life Insurance w/LTCR’s
![Page 39: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/39.jpg)
MAJOR DISTINCTION BETWEEN LTC RIDER &
ADB FOR CIR ?
![Page 40: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/40.jpg)
Selling additional L.I.Wealth PreservationWealth Creation Business Insurance Planning Disability Protection Reopened “Cold-Cases”Matrimonial Cases Domestic Partners Protecting what you have built
Sales Opportunities w/LTCR & CIR
PROPERTY OF AGENT SUPPORT GROUP
![Page 41: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/41.jpg)
LTC PRODUCT BREAKDOWN
PROPERTY OF AGENT SUPPORT GROUP
BLENDED LIFE SINGLE OR MULTI PAY
SINGLE PREMIUM OPTIONS
TRIPLE PLAY (DB/LTC/ROP)
UNDER IRC §7702
BENEFIT POOL LEVERAGING
GREAT FOR §1035 EXCHANGES
RETIREMENT PLANNING COMPLIMENT
SIMPLIFIED U/W PROCESS
![Page 42: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/42.jpg)
BLENDED LIFE VALUE PROPOSITION
$100,000(Earning 1% or $1,000 Annually)
Option ATraditional LTC
Option BBlended Life
• No On-Going Premium• Tax-Free Death Benefit• Tax-Free LTC Benefit
(3 -5x leverage)• Guaranteed ROP
• Premium of $5 – 7k/Year• No Death Benefit• No Control• Forfeiture of Premium
COST = $5,000 - $7,000/Yr. v. $1,000/Yr.
PROPERTY OF AGENT SUPPORT GROUP
![Page 43: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/43.jpg)
BLENDED LIFE ROP LTC OPTIONS
PROPERTY OF AGENT SUPPORT GROUP
NON‐NYYear 1………. 80%
Years 2 ‐5…. Vesting up
Years 6 +….. 100%
NEW YORKYear 1 + ..……. 100%
ORYears 1‐ 10 .…. 80% Years 11+ ……. Greater of 95% Prem. or 90% CSV
![Page 44: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/44.jpg)
PROPERTY OF AGENT SUPPORT GROUP
REIMBURSEMENT v. INDEMNITY BENEFITS
+ =2YR
6YR
4YR
Company X = $5,000/mo. INDEMNITY ($360k Pool)Company Y = $6,000/mo. REIMBURSEMENT ($432k Pool)$3,500/mo. HHC Claim (40hrs. x $20/hr.)Average Claim = 4‐5 Years
$
$120k$84k
$240k$168k
$360k$252k
![Page 45: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/45.jpg)
Modest Death Benefit
Joint/Dual Life Pricing Husband & Wife Domestic Partners Parent/Child
LTC Pool Options Limited Year (25,33,50 Mo. or 2x Multiple) Uncapped Lifetime Benefit Available for both Waiver available on extension Individual Option Available
UNIQUE SURVIVORSHIP LTC OPTION
PROPERTY OF AGENT SUPPORT GROUP
![Page 46: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/46.jpg)
LTC PRODUCT BREAKDOWN
PROPERTY OF AGENT SUPPORT GROUP
ANNUITYBASED
PRODUCTS
WHEN CLIENTS CANNOT QUAILIFY FOR LIFE INSURANCE BASED PRODUCTS
TAX‐FAVORED ACCESS TO FUNDS
SOME LEVEL OF PROTECTION
ASSETS WILL ACCUMULATE LIKE OTHER ANNUITY PRODUCTS
![Page 47: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/47.jpg)
LTC PRODUCT BREAKDOWN
PROPERTY OF AGENT SUPPORT GROUP
ANNUITYBASED
PRODUCTS
RMD OPPORTUNITIES SPIA/LIFE COMBO SPREAD TAX OVER 20 YEARS LEVERAGE $
NON‐QUALIFIED ROLLOVERS
PENSION PROTECTION ACT HIPAA QUALIFIED NEGATE LIFO TAXATION ON GAIN ANALOGOUS TO GIRs STILL EARNS CURRENT INTEREST
![Page 48: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/48.jpg)
TRADITIONAL STANDALONE
LIFE INS.WITH LTCR/CIR
(IND. or SUR.)
BLENDED LIFE SINGLE OR MULTI PAY
ANNUITYBASED
PRODUCTS
THE LTC MARKETPLACE
PROPERTY OF AGENT SUPPORT GROUP
SELF INSURE
![Page 49: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/49.jpg)
SELF INSURINGLTC BENEFITS
PROPERTY OF AGENT SUPPORT GROUP
![Page 50: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/50.jpg)
POWER OF LEVERAGING
PROPERTY OF AGENT SUPPORT GROUP
AGE: 50 55 60 65
Total Pool 383,949 331,454 289,190 258,970
Mo. Benefit 7,999 6,905 6,025 5,395
Total Pool 442,360 362,546 321,808 275,754
Mo. Benefit 9,216 7,553 6,704 5,745
PER $100,000 ONE-TIME DEPOSIT4 YEAR BENEFIT w/RETURN OF PREMIUM – STANDARD RATES
MALE
FEMALE
![Page 51: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/51.jpg)
POWER OF LEVERAGING
PROPERTY OF AGENT SUPPORT GROUP
AGE: 50 55 60 65
Total Pool 418,890 328,110 230,750 176,190
Mo. Benefit 8,380 6,562 4,615 3,524
Total Pool 462,810 371,090 283,850 198,610
Mo. Benefit 9,256 7,422 5,677 3,972
PER $5,000 ANNUAL ON-GOING PREMIUM50 MO. BENEFIT & GUARANTED DEATH BENEFIT– PREFERRED RATES
MALE
FEMALE
![Page 52: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/52.jpg)
Life Policy Audits
Life Insurance
Purpose
Product Health
PROPERTY OF AGENT SUPPORT GROUP
![Page 53: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/53.jpg)
Health Changes Rescue underwater contracts Increase Guarantees Needs Change Ownership Issues “Downsizing” Assist Fiduciaries Introduce product innovations LTC OPPORTUNITIES
Life Policy Audit Opportunities
PROPERTY OF AGENT SUPPORT GROUP
![Page 54: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/54.jpg)
LIFE POLICY AUDITS
Life Insurance
Purpose
Product Health
PROPERTY OF AGENT SUPPORT GROUP
![Page 55: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/55.jpg)
Life Policy Audit Case Study #1IN-FORCE SOLUTION
Clients: F43 F62Issued: 1997 2017
Face Amt: $186,000 $251,472
Plan Type: SPWL Blended Life
Rate Class: Standard Standard
CSV: $101,000 DB = $169,748LTC = $339,496ROP= $101,000
Additional Case Notes: Client was looking for LTCI but cost was too high. MG provides for a max mo. LTC benefit of $7,073. Since writing policy, agent has received 5 referrals and client is Comptroller for 100+ EE firm and broker is currently taking over the EE benefits plan.
PROPERTY OF AGENT SUPPORT GROUP
![Page 56: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/56.jpg)
PROPERTY OF AGENT SUPPORT GROUP
Life Policy Audit Case Study # 1
Life Insurance
Purpose
Product Health
![Page 57: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/57.jpg)
Life Policy Audit Case Study # 2IN-FORCE SOLUTION
Clients: M51 M52
Issued: 2017 2018
Face Amt: $500,000 $500,000
Plan Type: GUL GUL w/LTCR
Rate Class: Preferred NT Preferred NT
Premium: 6,211 $6,491
Additional Case Notes: Policy issued last year as GUL guaranteed to age 121.Presented GUL with LTC Rider. Same virtual premium. Client had LTC need. Solution: Multi-Use product creating guaranteed LTC pool, if needed.
PROPERTY OF AGENT SUPPORT GROUP
![Page 58: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/58.jpg)
PROPERTY OF AGENT SUPPORT GROUP
Life Policy Audit Case Study # 2
Life Insurance
Purpose
Product Health
![Page 59: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/59.jpg)
Closing Comments…
Discussed the LTC Marketplace
Went over the many available product designs
Modernization of LTC planning
Introduced some new ideas
Hopefully helped make you better at what you do
and let us not forget…
PROPERTY OF AGENT SUPPORT GROUP
![Page 60: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/60.jpg)
PROPERTY OF AGENT SUPPORT GROUP
![Page 61: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/61.jpg)
PROPERTY OF AGENT SUPPORT GROUP
QUESTIONS ??
![Page 62: The Ever Evolving Long Term Care Marketplace€¦ · common consumer response regarding ltc property of agent support group. property of agent support group health insurance will](https://reader034.fdocuments.net/reader034/viewer/2022050418/5f8e0b26c50cf34c0875b9ff/html5/thumbnails/62.jpg)
Mark D. Milbrod, [email protected]
(732) 917-6081WWW.ASGLIFE.COM
PROPERTY OF AGENT SUPPORT GROUP
THANK YOU !!!