New long-term care insurance product to offer unlimited benefit option

Posted by Tom Riekse Jr on Jun 3, 2016 11:48:19 AM

 

*Product will be available July 18th in 38 states with more to come - download the presentation below to learn more.

As most people know, LTC Insurance used to be a lot less expensive due to a variety of factors.  Because of the lower premiums, a popular option on plans was the unlimited or lifetime benefit period.

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Topics: New LTCi financing products, Advice articles about planning

What type of inflation protection are LTCI policyholders buying today?

Posted by Tom Riekse Jr on May 5, 2016 11:05:07 AM

Source of Photo:  USInflationcalculator.com

Long-term care insurance is bought when someone is "young" (50's) and healthy and is typically used when "old" (80's and 90's). Since an initial benefit is chosen to cover the current costs of long-term care, policy riders that increase coverage over time have always been a LTC option.

Deciding which inflation rider to add to a long-term care insurance policy is an inexact science.  If you overestimate the inflation rate you'll end up with too much benefit - and you can't do much with excess LTC coverage.    On the other hand, not having enough coverage to pay for meaningful benefits because inflation wasn't accounted at the time someone bought a policy is also a problem.

We recently analyzed over 25,000 LTC insurance policies that our business participated in since 2011 to get a idea of trends in inflation coverage.  We included individual, group, and linked life/ltc plans from a variety of carriers including John Hancock, Genworth, Transamerica, Mutual of Omaha, and others.

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Topics: New LTCi financing products, For financial professionals, Advice articles about planning

Is the waiver of premium feature for long-term care insurance a crucial benefit?

Posted by Nate Brisher on Jul 16, 2015 3:13:57 PM

The waiver of premium feature has been part of long-term care insurance almost as long as the product has been available.

The concept is easy - once a client is claim eligible and receiving benefits they no longer need to pay premiums. Waiver of premium means no stress about future premiums while on claim, and if a rate increase occurs during claim time it will not affect the policyholder.

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Topics: New LTCi financing products, Advice articles about planning, Current affairs

John Hancock Performance Long-term Care Insurance - First Look

Posted by Scott Williams on Mar 17, 2015 11:51:12 AM

 

As a former home office insurance long-term care insurance veteran, I've been involved with the launch (and retirement) of many different long-term care products.  I've seen products that were overpriced and never sold and products that were underpriced and sold well only to suffer big rate increases later.  But what if carriers could introduce a LTC product that removed some of the initial pricing guesswork?

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Topics: New LTCi financing products