As an advisor, you help guide your clients on a responsible path toward protecting their families, businesses, assets and estates. Unfortunately, an unexpected health crisis can disrupt even the best-laid plans, forcing clients to deploy assets they had hoped to save for other purposes. At least 70% of people over age 65 will require some long-term care services at some point in their lives.* So despite the uncertainty of the long term care industry as a whole, insuring the risk is still the most cost-effective way to protect oneself from the potentially devastating expense of long-term care. As an alternative to the traditional long term care insurance plan, several carriers have introduced Life/LTCi and Annuity/LTCi combinations that DO provide some long-term care guarantees.
MoneyGuard® is a linked benefits policy from Lincoln National Life Insurance Company; it combines universal life insurance and long-term-care in one policy. The MoneyGuard® policies provide benefits no matter what the future brings — a death benefit, long-term-care benefits or both. One version of the MoneyGuard product has various funding options and Return of Premium is provided automatically with every policy. Compare MoneyGuard Reserve Plus to MoneyGuard Reserve.
John Hancock has a Long Term Care Rider that can be added to their permanent life insurance policies. This optional LTC Rider allows policy owners to accelerate their death benefit to help pay for long term care expenses, should that need ever arise. Any portion of the death benefit not used to cover LTC expenses remains in the policy, and is later paid as a death benefit. They also have LifeCare which is a single-premium whole life plan with long term care benefits that addresses the need for guaranteed life insurance protection and LTC coverage.
Genworth Financial's Total Living Coverage (TLC) links universal life and long term care insurance into one product. It provides a pool of benefits to cover long term care expenses and a death benefit for beneficiaries. Even the entire death benefit amount is used to pay for long term care expenses, a Residual Death Benefit is available. The Return of Premium (ROP) rider is an optional rider that is available for purchase at the time of application. If the client decides not to keep the TLC policy before the end of the 15th year, the owner will get back at least their initial premium (less any LTC benefits already received). The ROP rider automatically terminates on any Partial Withdrawal or Loan from the policy.
United of Omaha has a single-premium deferred annuity with long term care benefits that is guaranteed to pay up to three times the annuity value at time of first claim for long-term care benefits. The Living Care Annuity provides a guaranteed rate of interest and tax-deferred growth and pays clients if they need long-term care and if they don't, the annuity value will pass to beneficiaries without probate of funds.
MVP Financial Services has the LTC solutions your clients need. Give us a call.
*Statistics taken from www.longtermcare.gov. Administration on Aging: 202 619-0724.
Thursday, March 22, 2012
Thursday, March 8, 2012
Prudential is out -- Who is still in?
A financial services leader, Prudential Financial has announced that they are pulling out of the individual long term care business, citing "the challenging economics of the individual market" and their "desire to focus...where we see the greatest opportunity." This announcement has no effect on their group long-term care insurance business and they expect to continue as a leader in the group market.
Just 39 carriers sell LTC insurance Nationwide. Of these, just 2 have paid more than $2.2 billion in LTC insurance claims. Only one carrier has paid over $5.4 billion in claims. Only one carrier has provided long-term care insurance for over 35 years*. So where does that leave us as advisors helping people plan to protect themselves when they are most vulnerable?
According to Pat Foley, President of Genworth Distribution and Marketing, "Genworth is unwavering in our commitment to the long term care industry, our policyholders and our distribution partners." Genworth Financial is the largest seller of LTC insurance in the U.S. and a leader in the industry since 1974. Their premier plan, Privileged Choice Flex combines innovation with rich, flexible benefits, making it one of the most comprehensive long term care insurance products available.
Transamerica LTC is celebrating just 25 years in the industry. They had pulled out of the individual LTC market several years ago and are now back in it; recently introducing their new TransCare II product.
John Hancock LTC has been in the business since 1987 and touts their 150 years of experience and stability in the insurance industry. Their signature Custom Care III product provides comprehensive coverage and a variety of valuable support services.
United of Omaha and American General are two more carriers that have individual LTC products available. United's Cash-First addresses the progression of care by paying cash on day one. American's LTC Plan is simple to understand and flexible enough to fit almost any budget.
Another industry giant, MetLife pulled out of the individual and group long-term-care insurance sales last year but continues to service existing policies. Allianz Life Insurance issued their last stand-alone LTC policies in 2010. They have re-directed their focus to combination products.
Almost every LTC insurance carrier has raised their rates at least once on their inforce blocks of business. In 2008 and 2010 John Hancock LTC announced rate actions seeking premium increases for inforce blocks of business on individual LTC policies. Genworth's first rate increase in 2010 was nearly 33 years after their first policy was placed. Transamerica raised their rates as much as 70% on one block of their business. United of Omaha raised rates in 2010 and American General, the newcomer to the LTC business, has not had a rate increase yet.
We have been taught that insurance is only as good as the company behind it so if the company is highly rated, financially strong and profitable...Well maybe there just aren't any traditional types of guarantees when it comes to long term care.
However, despite rate hikes and the uncertainty of the long term care industry as a whole, insuring the risk is still the most cost-effective way to protect oneself from the potentially devastating expense of long-term care. And, several of our carriers have introduced Life/LTCi and Annuity/LTCi combinations that DO provide some long-term guarantees.
MVP Financial Services still has LTC solutions for your clients. Give us a call.
*Genworth Financial long term care insurance website.
Just 39 carriers sell LTC insurance Nationwide. Of these, just 2 have paid more than $2.2 billion in LTC insurance claims. Only one carrier has paid over $5.4 billion in claims. Only one carrier has provided long-term care insurance for over 35 years*. So where does that leave us as advisors helping people plan to protect themselves when they are most vulnerable?
According to Pat Foley, President of Genworth Distribution and Marketing, "Genworth is unwavering in our commitment to the long term care industry, our policyholders and our distribution partners." Genworth Financial is the largest seller of LTC insurance in the U.S. and a leader in the industry since 1974. Their premier plan, Privileged Choice Flex combines innovation with rich, flexible benefits, making it one of the most comprehensive long term care insurance products available.
Transamerica LTC is celebrating just 25 years in the industry. They had pulled out of the individual LTC market several years ago and are now back in it; recently introducing their new TransCare II product.
John Hancock LTC has been in the business since 1987 and touts their 150 years of experience and stability in the insurance industry. Their signature Custom Care III product provides comprehensive coverage and a variety of valuable support services.
United of Omaha and American General are two more carriers that have individual LTC products available. United's Cash-First addresses the progression of care by paying cash on day one. American's LTC Plan is simple to understand and flexible enough to fit almost any budget.
Another industry giant, MetLife pulled out of the individual and group long-term-care insurance sales last year but continues to service existing policies. Allianz Life Insurance issued their last stand-alone LTC policies in 2010. They have re-directed their focus to combination products.
Almost every LTC insurance carrier has raised their rates at least once on their inforce blocks of business. In 2008 and 2010 John Hancock LTC announced rate actions seeking premium increases for inforce blocks of business on individual LTC policies. Genworth's first rate increase in 2010 was nearly 33 years after their first policy was placed. Transamerica raised their rates as much as 70% on one block of their business. United of Omaha raised rates in 2010 and American General, the newcomer to the LTC business, has not had a rate increase yet.
We have been taught that insurance is only as good as the company behind it so if the company is highly rated, financially strong and profitable...Well maybe there just aren't any traditional types of guarantees when it comes to long term care.
However, despite rate hikes and the uncertainty of the long term care industry as a whole, insuring the risk is still the most cost-effective way to protect oneself from the potentially devastating expense of long-term care. And, several of our carriers have introduced Life/LTCi and Annuity/LTCi combinations that DO provide some long-term guarantees.
MVP Financial Services still has LTC solutions for your clients. Give us a call.
*Genworth Financial long term care insurance website.
Tuesday, February 28, 2012
Bankrate.com: Just Another Solution
If you have never seen this website, it is a great informational tool to have handy as a link on your iPad or your website. This will give you current, local mortgage rates as well as the highest current rates for CD’s, treasury bonds, etc.If you have clients thinking about re-financing or purchasing a home this is a good website to be aware of if you want to offer "value added" service by directing them to this site.
If you are in the annuity market, the bank interest rates on this site may help convince your clients that annuities are excellent alternatives.
Check it out: http://www.bankrate.com/
Contact MVP about this blog or anything else that is on your mind... mvpinfo@mvp4me.com.
Wednesday, February 22, 2012
Life Insurance is the Solution
Americans are facing new economic realities. Today’s safety nets are disappearing. Older generations are realizing that their children and grandchildren may not have nearly the same opportunities that we have today.The industry is in a unique position to help families protect the long-term security of their loved ones using life insurance.
View this video from Transamerica to find out why it matters and what insurance agents need to know.
Thursday, February 16, 2012
Increase Your Sales by Making This One Small Change
There's a tool many of us have forgoten about that has been around for decades and it's time to start using it again. The life insurance needs analysis is becoming the new trend because it's relevent and a recent LIMRA survey says they are incredibley useful.*
In fact, the LIMRA survey found that clients who receive a needs analysis at the time of sale purchased an average of $423,000 in face amount—almost twice the $215,000 average purchase by clients that did not receive a needs analysis! Not only will helping your clients define their need for an appropriate amount of life insurance increase your sales, but it is also the professional thing to do.
If you are ready to give this a try with your next client, MVP recommends these tools to help you get started:
In fact, the LIMRA survey found that clients who receive a needs analysis at the time of sale purchased an average of $423,000 in face amount—almost twice the $215,000 average purchase by clients that did not receive a needs analysis! Not only will helping your clients define their need for an appropriate amount of life insurance increase your sales, but it is also the professional thing to do.
If you are ready to give this a try with your next client, MVP recommends these tools to help you get started:
- For a printable worksheet, go here
- For an electronic calculator that can be used on your computer, iPhone or iPad, go here
Thursday, February 9, 2012
February is Insure Your Love Month
February is when we do special things for the ones we love, which makes it the perfect time to remind clients and prospects of their need to protect their loved ones with proper life insurance planning.
Check out the Producers Tool Kit from the LIFE foundation at http://www.lifehappens.org/insure-your-love-producer-kit/ to put together your own Love Marketing program during this campaign.
LIFE offers numerous online and digital resources from which to choose, and two ways to incorporate them into your online marketing outreach: embeddable or linkable. You can provide links to activities such as the romance-o-meter.
Romance-O-Meter
Romance-O-Meter
Wednesday, February 8, 2012
Bendable Buy-Sell Arrangements
Because it is difficult to know what type of buy-sell structure will produce the best results when a triggering event occurs, it often makes sense to have some flexibility in the arrangement.
This new producer presentation discusses two flexible buy-sell arrangements and why there may be a need for flexibility.
View presentation....
This new producer presentation discusses two flexible buy-sell arrangements and why there may be a need for flexibility.
View presentation....
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