Meeting the needs of the middle market with combination products

January 13, 2017

Disruptive forces are causing carriers to focus on product innovation

Dec 28, 2016 | By Linda Chow

The US life, annuity and long-term care (LTC) industries are facing a number of disruptive forces, from macroeconomic changes and demographic shifts to rising consumer expectations. Carriers are responding by changing their business models, modifying sales distribution practices, digitizing core processes and functions, and upgrading their risk management capabilities.

In addition, there is an effort to stimulate revenue growth with innovative products that address industry issues and meet the enormous consumer need for LTC services and support. Among the products that have gained significant traction in the insurance industry are combination products, which combine base life or annuity policies with LTC riders.

This article will examine the rise of combination products, why they have enjoyed considerable growth in recent years and possible future developments in this increasingly important market.

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Bad long-term care cost potato

January 11, 2017

We have to cure more, insure more, save more, tax more, borrow more or ration more

Jan 10, 2017 | By Allison Bell

The current fight over what happens to people with health problems if the Affordable Care Act ban on medical underwriting goes away may be a baby version of the coming battle over how we pay for baby boomers who need long-term care.

The root of the ACA medical underwriting problem is the same as the root of the future long-term care funding problem: We have soft hearts and thin wallets. We want all nice people to have the care they need, but we don’t want to make tough decisions about how we pay for the care.

So, we keep rolling that bad funding hot potato around society.

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Many people really want long-term care insurance

December 15, 2016

Dec 01, 2016 | By Allison Bell

This is a challenging time for insurers to write stand-alone long-term care insurance, and a challenging time for agents to sell it.

No matter why some issuers may be getting out of part or all of the market, or how different the remaining players might be from the ones that have gotten out, the announcements about the players getting out are stressful.

Designing a complicated long-term care insurance program is difficult.

The bond interest rates that could smooth over that difficulty, by increasing earnings on long-term care insurance issuers’ huge reserves, hover near zero and, in effect, turn the reserves into the abstract financial equivalent of binge-watching bums on a sofa.

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Advanced tax time planning: 15 life insurance considerations

December 7, 2016

Dec 07, 2016 | By Stephan R. Leimberg

Life insurance can be a superb savings asset, but it does carry distinct tax issues.

All conventional saving vehicles serve the same purpose, but the unique feature of life insurance is that it assures a desired accumulation at a specific, but uncertain time; namely at the time of the insured’s death. No other savings or investment tool makes such a guarantee.

Here are 15 life insurance tax issues to anticipate in advance of filing time, from “The Tools & Techniques of Life Insurance Planning” (6th Edition).

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A long-term care plan for clients who have failed to plan

December 5, 2016

Nov 29, 2016 | By Chris Orestis

Settling life insurance policy death benefits into a structured vehicle can pay for the costs of senior retirement living and long-term care.

Most people believe they will never need long-term care. Or if they do, they believe they’ll be able to cover the expense. So what can be done if you did not plan for the possibility, and you or your loved one is confronted with an unexpected need for long-term care?

Fortunately, solutions are available to help those who failed to plan. A fast-growing area of long-term care planning is “crisis management.”

Strategies are available for financial and legal advisors to help families pay for the costs of long-term care. Among them: settling life insurance policy death benefits into a structured vehicle that will pay for the costs of senior retirement living and long-term care.

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Super-charge clients’ protection: Life insurance with DI

December 2, 2016

Nov 28, 2016 | By Richard M. Weber, M.B.A., CLU, AEP

When DI is combined with appropriate life insurance, a “double-duty” synergy is achieved, resulting in complete protection for the portion of human life value for which insurance exists.

A typical affluent family owns a variety of assets, including real estate, cars, retirement accounts, investments, cash and life insurance. But some assets may be vulnerable to possible loss, through economic downturns, mismanagement or natural disaster.

Fortunately, some of those losses can be offset by transferring the risk of loss to an insurance company. Still, there are other risks, such as job loss or experiencing a business failure, which cannot be so readily transferred.

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Long-Term Care Sales Ideas

November 30, 2016

This booklet gives the broker tips and ideas to start the process of turning your clients LTC needs and concerns into sales.

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