New LTC Insurance e-Apps make sales easier for advisors

Posted by LTCI Partners on May 25, 2017 11:16:55 AM


The promise of simple e-applications that an advisor can use to sign people up for LTC coverage has been something insurance carriers and distributors have been working on for many, many years. Now, there are encouraging signs that the latest round of products may finally get more producers to adopt them.

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Topics: For financial professionals, Sales Tips

Six things behavioral economics teaches us about LTC insurance

Posted by Tom Riekse Jr on Apr 15, 2016 12:42:11 PM

As a college student I was taught about the wonders of a classical market economy comprised of competing companies selling to rational consumers.  My economics professors focused on things such as supply and demand graphs and price elasticity.  After college, I spent my early years in LTC Insurance assuming most people made smart decisions about buying coverage.

I was wrong in my assumption. Only about 8% of people fit a classic "planner" profile and have the ability to plan for the future and take action - and not surprisingly,  8% is about the percentage of people who own policies! For the other 92% of us, the traditional ways to talking about planning for LTC aren't working.

The answer might be in the evolving area of behavioral economics.  Although I never took college courses on the subject,  I'm trying to catch up on the subject because I believe the implications for the future long-term care insurance planning are huge.

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Topics: Sales Tips

Are you sabotaging your long-term care insurance sales?

Posted by Lauren Jiles-Johnson on Feb 18, 2016 11:26:50 AM

What causes a long-term care insurance sale to fizzle?  It might be something out of your control. Or it could be you. Read on for some of the ways advisors sabotage their LTCI sales.

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Topics: For financial professionals, Advice articles about planning, Sales Tips

The biggest reason for the slump in LTC sales - and the key to a turnaround

Posted by Tom Riekse Jr on Jan 15, 2016 4:42:55 PM

Standalone long-term care insurance sales are in a slump. According to most industry estimates, new policy sales are about a third of what they were just 10 years ago. The primary reason for the decline - a crisis of confidence of both buyers and sellers of the product. Like most slumps, the reasons have their roots back to the days when sales were booming.

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Topics: For financial professionals, Advice articles about planning, Current affairs, Sales Tips, Financial Wellness, John Hancock

Here are four ways non-business owners can still benefit from LTC Insurance tax incentives

Posted by Tom Riekse Jr on Dec 10, 2015 8:08:43 PM

As a business owner of a C-Corporation, I've greatly benefited by being able to pay the long-term care insurance premiums for myself and my spouse through the business.  

We've been able to deduct 100% of the premium as a business expense.[IRC 162(a)]  Since LTC Insurance is treated like health insurance, the premium paid by the corporation is excluded from my Adjusted Gross Income.  Finally, any benefits we may receive for long-term care will be non-taxable as well [IRC 7702B].  

Any C-Corporation can treat select employees similarly, and standalone LTC Insurance is a popular executive benefit because of this truly unique tax benefit.

However, not all of us have this corporate advantage for LTC coverage. For individuals, LTCI premiums are considered medical expenses and deductible to the extent they exceed 10% of an individuals adjusted gross income (AGI).  They are also limited to the eligible premiums below [IRC 213(d)(10)] based on the age of the insured individual.  

Taxpayer's Age At End of Tax Year - 2016  Deductible Limit
40 or less   $  390
More than 40 but not more than 50  $  730
More than 50 but not more than 60 $1,460
More than 60 but not more than 70 $3,900
More than 70 $4,870

The benefits are received tax-free up to the actual expenses of daily care.  In cases where someone has a cash plan that pays a benefit in excess of actual expenses, the tax-free amount is $340 per day.

Now it get's interesting

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Topics: For financial professionals, Sales Tips