Your clients will never be as young or as healthy as they are today.
When insurance carriers underwrite a life insurance policy with a long term care rider, they must consider factors that impact both the mortality and also the morbidity risk. As a result, the list of impairments, medications and surgeries that would result in an automatic declination of coverage is considerable when compared to a life insurance policy without an LTC rider.
And if leveraged to secure permanent insurance at a younger age, could save him or her tens of thousands of dollars in premium expense over their lifetime. If your clients are considering permanent insurance while in their 30’s, 40’s or 50’s, you should encourage the addition of a LTC rider to their policy.
Many people do not recognize the importance of having long-term care protection until it is too late and they are either unable to qualify or the cost has become too prohibitive.
Do not wait to have a conversation with your clients about including a LTC Benefit Rider on their life policy. This is a great way to add value during a policy review, or to help distinguish yourself from your competition.
Remember, that more than two out of every three Americans over the age of 65 will require Long Term Care – this solution will help overcome the single biggest objection to purchasing standalone LTC coverage, “What happens if I am the one in three who does not need long term care?.” These policies will pay out during the client’s lifetime to provide an LTC benefit, or if the client is of the fortunate few that never need LTC, will still payout a tax-free death benefit to the beneficiary.
For roughly $300/month, a 40- year- old male can purchase $500K of UL protection guaranteed for life with a rider that would allow for up to $10K of LTC Benefit Coverage each month. The same exact policy will cost over $1,000/month for a 65-year- old at the same rate class.
Don’t wait for your clients to ask you about LTC coverage, or put off the conversation until they are approaching retirement and the premiums have become considerably more expensive. Call us today to learn more about how you can help your clients address two different needs with one product.