Hybrid LTC Insurance Is Popular, But Be Careful

June 6, 2019

By: Ben Mattlin

Roughly 260,000 hybrid policies were sold while only 66,000 traditional L TC plans were, says Catherine Theroux, a spokesperson for industry data cruncher LIMRA.  Experts caution, however, that hybrid L TC isn’t right for every­one.

There are potential downsides, and not all hybrids are alike.

The reasons for the popularity of hybrids are manifold. First, while stand-alone LTC premiums have risen precipi­tously in recent years, hybrid premiums tend to remain stable, since most are paid up front. Second, it’s usually easier for clients to qualify for hybrid L TC coverage because the under­writing standards tend to be less restrictive.

But perhaps most important, hybrid policies solve for the “use it or lose it” problem. That is, clients will receive benefit one way or the other-either through a long-term-care need or as a death benefit, or both. Traditional L TC policies, on the other hand, only pay out if the client experiences a qualifying need. If that doesn’t happen, the years of premium payments are wasted.

Yet these combination plans have a downside. “Hybrids lack some of the customization of stand-alone L TC insurance,” says Suk Pau, vice president and managing partner at the Wealth Consulting Group in Cupertino, Calif. “A stand-alone product can let you set the benefit period or amount, whereas these are less flexible in hybrid policies.”

In advising clients about their LTC insurance options, Pau says it’s a good idea to ask what’s important to them. “What is your big­gest concern?”‘ she says. This helps you find the product that best fits each client’s particular circumstances.

Full Article

Marketing Plan: Grow Your Business

June 5, 2019

Introducing – The Business Development Institute

The Business Development Institute provides a roadmap for producers to strengthen their relationships and sales in the business market. They have done this by providing concrete action steps agents may follow that will lead to sales. Resource Brokerage has been sending out recorded modules, but we invite you to dial in live for the final two parts in the series.


  • 7 topics: a “must have” conversation with every business owner
  • How business owners can create intentional success
  • Thought provoking questions to illuminate sales opportunities
  • Action steps to help small businesses with their challenges, that will lead to opportunities for you, their agent

Thursday, June 27, 2019     10:00am to 11:00am

Full Details

Why Am I No Good at Prospecting?

May 31, 2019

By Bryce Sanders | May 30, 2019 at 04:48 PM

The good news: Many prospecting problems are easily fixable.

Ever think, “My pipeline has run dry. What am I going to do?” Successful financial advisors and insurance agents are always adding new clients. They look for business because they know it won’t just come to them. What am I doing wrong? How can I fix this problem?

12 Reasons the Well Has Run Dry

Let’s examine the problem together and find a solution.

1. You’re looking for the silver bullet. Over the years, advisors have looked for the magic strategy that will get prospects lining up at their door, without much effort on their part. In the ‘90s, it was the internet. In the 2000s, maybe you felt an email campaign was the answer. Today, it’s social media.

Solution: Technology helps, but you must sit yourself opposite your prospect and look them in the eyes. Technology should be a tool that helps you talk live with a prospect and schedule an appointment.

2. You don’t have a formal procedure. You’ve heard trainers explain an A to Z process. Your prospect is at point A. Signing the paperwork and handing over a check is point Z. What has to happen in the middle? Do you have a series of steps or do you just keep talking to them, as they put you off?

Solution: You need a series of steps you can move people through. Talking, getting an appointment, doing a plan, presenting the plan with recommendations, follow-up.

3. It’s not a daily activity. Many established producers prospect every day. In the past, they shut the door for an hour and get on the phone. They would chase away people who interrupt them. They get it out of the way early in the day.

Strategy: Does your daughter take violin lessons? Is your son on the basketball team? Do you tell them “Practice when you feel like it?” No. You hold their feet to the fire. Follow the advice you would give your children.

Full Article


Who’s Responsible for Your Parents’ Nursing Home Cost? It’s Not Who You Think

May 14, 2019

You better find out what your state’s laws are, but regardless, start looking into LTC plans.

By William H. Byrnes and Robert Bloink                         

Long-term care planning often carries significant negative associations. Most clients don’t want to plan for a time when they are incapacitated and require constant care, and the dramatic increases in the cost of long-term care insurance have made this type of planning shockingly expensive for many clients.

Regardless of these factors, clients have to be reminded about the importance of LTC planning—and that this is not always an issue that’s only relevant for those clients nearing retirement.

As clients’ parents age, we should remember that children may, in some cases, be held financially responsible for their parents’ nursing home costs—and that this is no longer an outlandish idea, but one that has actually been legally enforced in the courts within the last five years. Providing clients with viable LTC insurance alternatives can help them avoid the shock of unexpectedly facing the financial burden of paying for parents’ nursing home costs—whether they are legally obligated to do so, or simply want to help their parents receive the best care possible.

Recent Cases Upholding ‘Filial Responsibility’ Laws

Filial responsibility laws are state laws that can essentially hold adult children liable for their parent’s long-term care costs. While these laws rarely make the news, they are on the books in 28 states and can provide a powerful motivation to encourage clients to plan for their future LTC costs, and to take steps to develop a plan for paying for parents’ long-term care needs.

One of the important modern cases enforcing filial responsibility laws was a Pennsylvania case in which an adult son was held liable for $93,000 in nursing home costs required to care for his mother after she was involved in an accident. The court in this case found the son liable despite the fact that his mother’s Medicaid application remained pending at the time, and without regard to whether other potential sources of payment (including two other siblings) existed.

Full Article


Webinar – NEW Spin on LTCi

May 2, 2019

Live, Die or ROP on a Traditional LTCi Product!

Join Resource Brokerage’s Ron Cohen, LTCP and National Guardian Life to introduce EssentialLTC as we introduce the newest super hero in traditional LTCi. If you thought traditional LTCi was dead because of the new Linked Benefit plans have infiltrated the marketplace, we are going to show you new concepts in NGL’s innovative LTCi designs that give Linked Benefit plans a run for the money. Don’t miss this opportunity to learn about the newest super hero of LTCi.


  • Show you how NGL’s program provides clients comprehensive coverage for LTCi that pays a benefit if your client: lives and needs care, dies and never needs care or subsequently changes their mind and wants their money back!
  • Learn how 1035 exchanges can be used to fund traditional LTCi using a client’s existing Annuity or Life insurance policy
  • See how your clients can benefit from a plan design that features “a third bucket of money” that allows your clients extra benefits without impacting/depleting their spouses’ LTCi benefits!
  • Innovative riders like Full Return of Premium and 10 Pays
  • Show how tax deductions can save your clients money with worksite plans
  • How NGL pricing can be shown to BOGO
  • Generous commissions and renewals included

Thursday, May 23, 2019     10:00am to 11:00am

Full Details

Medicaid Squeeze Hurts Nursing Home Quality: Witnesses

April 29, 2019

By Maria Wood

Low Medicaid reimbursement rates for nursing homes are hurting the quality of care, by keeping operators from offering high enough wages to attract and keep good workers, long-term care (LTC) experts told lawmakers at a recent Senate hearing.

The squeeze can lead to pressure on the quality of care even for private-pay patients, witnesses said at the hearing, which was organized by the Senate Finance Committee.

Sen. Chuck Grassley, R-Iowa, the chairman of the committee, kicked off the hearing by noting that about one-third of residents in federally funded nursing facilities suffer harm.

That roughly the same percentage as suffered harm in federally funded nursing facilities two decades ago, Grassley said.

Dr. David Grabowski, a professor at Harvard Medical School, testified that the facilities highly dependent on Medicaid are the ones most often cited for neglect and poor quality of care, especially in rural areas.

Full Article


LTCI Panel

April 11, 2019
What is your outlook for the stand-alone LTCI market? In what market segments are you seeing sales activity and/or optimism?
The stand-alone LTCI market will continue to be a major part of the LTCI solution, with over 50 percent of the present value of the long term care premiums on new policies being generated by stand-alone policies, and almost all of the rest being generated by the hybrids where most of the premium is actually life insurance premium. With the stand-alone LTCI new business premiums now quite stable and the future rate increase risk on those new policies minimal, I expect the new business volume for stand-alone LTCI to start increasing, especially among those carriers involved in offering tax advantaged, benefit advantaged, or worksite solutions.
Full Article