Industry Articles

October 3, 2018
  • What You Think About the Value of Life Is All Wrong
    Researchers show why your clients like high-tech cures better than they like exercising and eating right. Read more.
  • How to Help Retirees Pick the Right Life Insurance: Hidden Value
    For something different: Here’s an article by a planner who thinks some clients should refrain from buying life insurance. Read more.
  • Covering the Bases With Life Insurance and College Funding
    For families that understand how FIUL works, it can be a great college funding tool. Read more.
  • What Policymakers Don’t Get About Couples Who Retire Together
    Sometimes, economists point out, husbands and wives have different needs and ideas. Read more.
  • 4 Ways Wellness Can Cost Annuity Clients a Fortune
    People who control their health risks need to plan for extra years of life. Read more.
  • Making Sense of Long-Term Care Planning
    If you’re new to this, here’s a place to start. Read more.
  • Top 10 Most Puzzling Financial Terms for Americans
    It may be shocking that only 16% of Americans have a high level of financial literacy. Read more.

Buyers of new LTCI policies face little risk of

September 26, 2018

Individuals who purchase a new long-term care insurance policy face little if any chance of a future
rate increase according to a study of pricing experts released Sept. 17 by the American Association for Long-Term Care Insurance (AALTCI).

“Policies priced years ago using different assumptions have seen rate increases so consumers today assume they face the same risk,” says Jesse Slome, director of AALTCI. “That’s simply not the case.”
The Los Angeles-based national organization just released results of a poll of actuaries across the long-term care insurance industry.

Full Article


Industry Articles

August 27, 2018
  • Sorry, No Room for Your Mom
    There’s one little problem with your clients’ LTC plans: LTC services providers are in decline. Read more.
  • 529 Plans vs. Roth IRAs: Which Is Better for College Savings?
    Mark Kantrowitz, publisher of Savingforcollege.com, explains the differences, but in most cases the winner is clear. Read more.
  • New Tax Deduction Might Favor Life Agents Over Retirement Advisors
    The IRS is definitely leaning toward lumping actuaries together with actors, doctors and other fancy professionals. Read more.

Long-Term-Care Insurance Isn’t Dead. It’s Now an Estate-Planning Tool

July 24, 2018

By Leslie Scism

Last year, after finishing with college tuition for their three children, Jessica Galligan Goldsmith and her husband, James, treated themselves to something she had long wanted: long-term-care insurance.

It hasn’t been cheap. The couple, both lawyers in their mid-50s, will shell out more than $320,000 between them over a decade. For that, they will be able to tap into benefits topping $1 million apiece by the time they are in their 80s, the age when many Americans suffer from dementia or other illnesses that require full-time care.

Plus, the policies pay out death benefits if long-term care isn’t ultimately needed, and most provide 10% to 20% of the original death benefit even if the long-term-care proceeds are fully tapped.

Such policies that combine long-term-care coverage with a potential life-insurance benefit are called “hybrids,” and they are reshaping the long-term-care niche of the U.S. insurance industry.

Full Article


Millennials May Care About Long-Term Care Benefits

July 11, 2018

By Allison Bell | June 27, 2018

Carriers may be afraid to sell it, but workers seem to like it almost as much as life insurance.

Workers in the “Millennial” generation — those born from 1979 to 2000 — may like seeing long-term care insurance (LTCI) options on the benefits menu even more than older workers do.
All workers combined say they like LTCI benefits almost as much as they say they like life disability insurance.

Workers seem to be much more interested in LTCI benefits than in benefits sometimes seen as LTCI substitutes, such as critical illness insurance and cancer insurance.

Full Article


Industry Articles

July 5, 2018
  • 5 Benefits Trends on Prudential’s Radar Now
    Financial wellness is a thing. But…how do you measure that? Read more.
  • Hannover Re Backs OneAmerica Life-Based LTC Product
    A Hannover Re executive says his company likes OneAmerica’s experience in the LTC hybrid market. Read more.
  • Some Advisors Call for Early Long-Term Care Planning
    Half of a large bank’s high-net-worth advisors start LTC talks when the client relationship starts. Read more.

Life-LTC combo products on rise; now represent 25% of total new U.S. life insurance premium

June 28, 2018

Total new premium for life combination products (which combine life insurance with long-term care or chronic illness coverage) increased 18% to $4.1 billion in 2017, according to LIMRA’s 2017 Individual Life Combination Products Annual Review, released June 21. This is the third consecutive year of premium growth.

Life combination product market share of individual life insurance premium has increased 10 percentage points over the last two years and represents 25% of total new U.S. life insurance premium in 2017.

“Life combination product premium has increased by double-digits in four of the last five years. Much of this growth may be attributed to the attractive value proposition these product offer to consumers,” said Elaine Tumicki, corporate vice president and director LIMRA Product Research. “Our consumer research finds more than a third of U.S. consumers said they would consider a combination product because no matter the circumstances they or their beneficiaries would benefit.”

LIMRA’s study finds there were 260,000 policies sold in 2017, 5% higher than 2016 results.

Full Article