---
title: How to easily explain linked benefit LTC insurance products
description: To be successful in discussing single premium life/ltc insurance plans with consumers  keep it simple
---

<https://www.ltcipartners.com/blog>

# [How to easily explain linked benefit LTC insurance products](https://www.ltcipartners.com/blog/how-to-easily-explain-linked-benefit-ltc-insurance-products)

 Written by [Tom Riekse Jr](https://www.ltcipartners.com/blog/author/tom-riekse-jr) | Aug 20, 2015 6:30:00 PM

 

Most Americans are not long-term care insurance experts. This shouldn't surprise anyone who has the challenging task of convincing people to plan for long-term care when they would rather be doing just about anything else.  

Because talking about long-term care is so challenging, it's critical to take the time to explain the [different options for planning](https://www.ltcipartners.com/blog/3-ways-to-fund-a-long-term-care-event), including linked life/ltc plans.  Since linked plans combine both life insurance and LTC insurance there can be a perception they are complicated.  However, that's not the case.  

Consider this example from Nationwide:

 

 

You'll notice that by working from the upper left hand corner of the image and discussing the single premium first there is simple flow to the story.  

First, the $100,000 deposit creates a $180,419 life insurance policy that will pay upon death, unless LTC is needed.  If long-term care *is* needed the money will first come from the acceleration of the death benefit, than from an extension of benefits rider.  Finally, if the policy holder changes their mind prior to a LTC need  they can get their money back.

LTCI Partners hosted a webinar with two leading linked product experts, Gary Munz from OneAmerica and Jason Combs from Nationwide.  They gave some great tips on simplifying the linked-product conversation and explained what attracted clients to the products.  [The entire webinar can be found here](http://www.screencast.com/t/tiqBxy8eq), but here are some ideas they shared:

1. **Stay away from statistics - **In Jason's experience "discussing the odds of needing care will lead to the client thinking they will be one of the lucky ones".  Instead, get agreement that if a care event did happen the impact on the family would be severe.
2. **Guarantees - **Consumers like the guarantees and certainty found in linked products.  A complaint of people who bought standalone coverage has been in-force premium increases due to under priced products.  
3. **Reallocation of money - **Gary from OneAmerica likes to ask "in the absence of long-term care insurance, which asset would you liquidate first to pay for care?".  That asset, such as a bank CD, can end up being a great funding source for single premium life/ltc plans.
4. **Stick with popular options.  **Don't get fancy with plan designs.  According to Jason, "the majority of sales are single premiums,  an average initial deposit of $80,000, and a six year benefit with no inflation".  See the example above.

Are there any risks with life/ltc plans?  [The main dowside is interest rate risk](https://www.ltcipartners.com/blog/what-is-the-implication-of-rising-interest-rates-on-tra).  If interest rates increase the opportunity cost of having a lot of money tied up in a single premium can be high.  The single premium shouldn't represent a larger percentage of the policyholders total net worth. 

Once the basic concept of single premium is explained and understood by a potential buyer more options can be explored.  First, however, keep it simple!

[View full post](https://www.ltcipartners.com/blog/how-to-easily-explain-linked-benefit-ltc-insurance-products)

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