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2. Background. Strategic Benefits Group is a life and long term care brokerage company representing several different insurance carriers13 years of experience on LTCPrimary area of work is Estate Planning. 3. The Basics of Life Insurance. Primarily two different typesTerm InsuranceRenting tempo
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1. 1 Life Insurance and Long Term Care Presented by Mike Ferrell, CEO
Strategic Benefits Group, Inc.
Bloomington, MN
2. 2 Background Strategic Benefits Group is a life and long term care brokerage company representing several different insurance carriers
13 years of experience on LTC
Primary area of work is Estate Planning
3. 3 The Basics of Life Insurance Primarily two different types
Term Insurance
Renting temporary coverage
Permanent Insurance
Has Equity
Cash Value has many uses
4. 4 Other Options Most insurance policies have options that an individual can add on to a policy such as:
Children’s riders
Disability waiver riders
Family and spouse riders
Terminal Illness riders
Accelerated Death Benefit Riders
5. 5 Long Term Care Funding Options Permanent Life Insurance can be used to fund long term care costs
Withdrawals can be used from cash value
Loans against the policy
Transferring the cash value into an annuity that pays out an income stream to pay the LTC costs
6. 6 The Newest Type Of Life Policy Linked Benefit Policies
A Life Insurance policy that has a specific benefit for Long Term Care
Some use an accelerated death benefit, some have an actual long term care benefit
7. 7 Linked Benefit Policies Pro’s
Give clients flexibility
Clients get death benefit, LTC benefit and can access cash value if needed
Guarantees the premiums
Get a benefit if they never use it for LTC
Con’s
Funding is typically done on a single premium basis
Death benefit can be reduced by LTC claims
Underwriting
8. 8 Industry Trends As insurers continue to struggle with pricing for long term care insurance, linked benefit policies will be a cost effective way for them to go
As clients continue to see LTC premiums increase, life insurance and linked benefit products will become an attractive alternative