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A Solution For The Client Who Wants It All

Client’s today are looking for solutions with complete flexibility that solve multiple needs, for a number of different situations. Often times, the client is searching for a “perfect” solution that guarantees a winning scenario in all circumstances.

For those exceptionally competitive clients, who are looking for a successful outcome in all scenarios, a Linked Benefit solution is the perfect fit.

While the future can never be predicted, one thing you can guarantee your client is that one of the following three scenarios will happen every time:
  • They will pass away without an LTC claim and their beneficiaries will receive a tax free death benefit
  • They will have an extended health care event and gain access to leveraged LTC benefits
  • They will later decide they want to surrender the policy and the carrier will provide a full refund of premium
With a Linked Benefit solution, you can provide a solution for not just one or two scenarios, but all three.
 
A Linked Benefit Policy covers both Long-Term Care (LTC) coverage and life insurance, and at the same time offers a Return of Premium Rider.
 
Linked Benefit policies attract people who:
  • Are retired, or approaching retirement
  • Are more affluent with higher net worth
  • Want to protect against potential LTC expenses AND leave a legacy to their loved ones
These policies help prepare your client simultaneously for a potential long term care event, an unexpected death, or immediate access to cash. Your clients’ needs may change with time, so the more options and flexibility, the better.
 
To show your clients how to position themselves in a winning hand, no matter the scenario, contact your LTC Sales Department today.
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Expand Your Business By Pursuing This Key Target Market

The “younger” segment of the LTC Insurance market (people age 45-55) represents a great opportunity to expand your business.

But to be successful, it’s critical to understand their unique needs and concerns around buying coverage.

Doing so can help you to anticipate and overcome objections, present solutions more effectively, and ultimately, create more positive outcomes. Here’s a helpful strategy to follow:
 
Know Your Audience
 
Individuals in the 45-55 age bracket often understand the need for LTC planning, but have not purchased a policy because of perceived affordability issues and/or competing priorities such as future college expenses, retirement planning, or caring for aging parents.
 
The majority of LTCi sales are to people under 55. Your biggest challenge is creating the sense of urgency for them to take action sooner rather than later.
 
Anticipate Objections
 
When discussing LTC planning with younger prospects, you may hear:
  • “I’m too young to deal with this right now.”
  • “Currently, I’ve got other priorities to deal with.”
  • “I can’t afford to add another bill to my monthly expenses.”
Respond Effectively: Before you can overcome an objection,it’s important to acknowledge a client’s concern and show empathy. This demonstrates that you are actively listening to their needs and concerns, which will help to build trust, and ultimately, enable the client to feel comfortable about moving forward.
 
Move Toward A Decision
 
Buying LTC Insurance is not an all-or-nothing proposition. You can take advantage of the flexibility you have to adjust the policy design. Show plan options with a premium that fits their budget. Here are two sample responses that address common objections:
 
Why Now Versus Later: “I hear what you are saying about your competing financial obligations and priorities. Since coverage is often much more affordable when you are relatively young and healthy, delaying this decision can make buying coverage even more challenging later. Let’s explore a few alternatives that might help us take advantage of your current age and health.”
 
Too Expensive: “I hear what you are saying about the monthly premium and your current budget. The most important thing is to have some level of coverage, so that you don’t ignore the risk altogether. Let’s look at some plan designs that still provide a strong level of protection, but better fit your current budget.”
 
Did You Know?
 
The average length of an LTC Insurance claim is 2.85 years. So when the premium cost is the biggest concern, look at different policy designs with a 3-year Benefit Period, which can provide ample and very affordable coverage for the majority of clients.
 
Contact your LTCi Associates for more resources and materials to help expand your LTCi business.
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How To Turn Idle Assets into LTC Protection

Do your clients have “idle money” you don’t know about? Perhaps they have some emergency funds sitting in savings, money market or a CD, and it’s just not working as hard for your clients as it could.

Do your clients have money that could be better used to help them plan ahead for the risk of a future extended health care need?

Consider reallocating a portion of these assets into a linked benefit solution.
 
Here are some potential benefits. If your clients:
 
  • Change their mind. With the Return of Premium Provision, clients can get at least their initial premium back.
  • Do not use the LTCi benefits. Beneficiaries get a tax free death benefit.
  • Like the idea of instant leverage. Instantly provide your clients approximately 2x their initial premium for a death benefit, and depending on the product, nearly 2x to 6x their initial premium in covered long-term care benefits (amounts will vary due to age and gender).
  • Need LTCi. The benefits are tax free.
  • Want a tax break. Covered LTCi benefits and life insurance death benefits are income tax free.
A linked benefit solution is a win-win proposition. Let’s get your clients’ money working harder. Contact your LTCi Specialists for more information.
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LTC Benefits – Won’t Lose It If You Don’t Use It

One challenge with presenting the need for long-term care is that it is viewed as a risk, not a certainty.
 
It’s not that your clients don’t want the coverage, but convincing someone to allocate funds towards something they may never use can be a difficult objection to overcome.

Good news – Asset Based Long-Term Care (LTC) with Guaranteed Premiums paid for life is here.

It allows your clients to use the LTC benefit if needed – and if they don’t, they can leave the death benefit or accumulated value to their estate.
 
Clients receive a guaranteed amount of life insurance. All of which may be used for qualifying long-term care expenses – also, the premium is credited with a guaranteed interest rate, raising the cash value each month.
 
With the use of the OneAmerica Care Solutions® Rate Calculator, financial advisors can run a quote for key Asset-Care individuals anywhere, anytime. Plus, get an easy to understand take-home guide for your clients.
 
Access the OneAmerica® Care Solutions Calculator and run a quote today
 
Contact your LTC Sales & Marketing Team to learn more.
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A Game-Changer for Agents: The Power of Hybrid LTC Annuities

Have clients over 70 sitting on nonqualified assets but can’t qualify — or don’t want to pay — for traditional LTC insurance? You’ve got a powerful option: Hybrid Long-Term Care Annuities.

The LTC Catch-22

The fastest-growing population segment is adults 85+, yet most aren’t financially prepared for a long-term care event. Traditional LTC insurance is often too expensive, too hard to qualify for, or simply rejected by clients who assume they’ll never need it.

But here’s the win: many of these same clients do have nonqualified assets they don’t plan to touch. That’s where you come in.

Turn Idle Assets into Tax-Free LTC Benefits

Nonqualified annuities offer tax-deferred growth—great for retirement, but painful if liquidated for care expenses due to taxes and fees.

Thanks to the Pension Protection Act, hybrid LTC annuities funded with nonqualified dollars allow clients to access LTC benefits tax-free. No penalties. No income tax hit. And if LTC isn’t needed? The remaining value goes to their beneficiaries.

Why Agents Should Act Now
  • Simplified underwriting – ideal for clients who can’t qualify for traditional LTC.
  • No “use it or lose it” – funds not used for care pass to heirs.
  • Urgency matters – the older the client, the more difficult approval becomes.

Don’t let these opportunities sit idle. Contact your LTC Specialists today to help your clients turn dormant assets into living benefits.

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When Asset Based LTC Is A Fit

Most people will need long-term care services at some point during their lives, and the costs can be staggering.
 
Asset Based Long-Term Care offers your clients an efficient way to plan for these potential expenses with LTC coverage plus as well as a death benefit for cost recovery.
 
Four potential client profiles for Asset Based LTCi.
 
1 | Clients ages 40-80 with “sleeping assets” or cash, such as:
  • Cash, CDs or bonds that are maturing
  • Proceeds from selling a business
  • Funds from downsizing/ selling a home
  • A recent inheritance
CONCERN: Impact a LTC event could have on their spouse, family and finances
PAYMENT: Single Premium
 
2 | Clients ages 55-67 closing in on retirement who are:
  • In the peak of earning capacity with excess income for premiums
  • Preferably age 59.5 or older so they can access qualified money not needed for retirement income
CONCERN: The financial and lifestyle risks LTC expenses could have on their spouse
PAYMENT: 5, 10, 20-pay or pay for life
 
3 | Retirees with IRAs, annuities or income sources to reposition:
  • Required minimum distributions from IRAs not needed for income purposes
  • Annuities not needed for retirement income purposes
  • Social Security benefits not needed for living expenses
CONCERN: Protecting assets/ income and reducing LTC dependence on family
PAYMENT: 5, 10, 20-pay
 
4 | High earners not rich yet (HENRYs) ages 40-55 who:
  • Have excess annual liquidity
  • May have experienced providing care for a parent or grandparent
  • See the value of buying earlier rather than later
  • Would like to insure their parents for LTC to protect their own savings and retirement assets
CONCERN: Protecting assets/ income and reducing LTC dependence across generations
PAYMENT: 5, 10, 20-pay
 
Contact your LTC Sales & Marketing Associate today for more information.
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Protecting Those Who Care For Others

Women often try to find the right balance between juggling careers, spending time with family, and caring for loved ones.

With women living longer, and providing more caregiver services, they become more vulnerable to long-term care issues.

Now is the perfect time to increase your focus on existing and potential female prospects to expand your LTC Insurance business.
 
How You Can Help
 
Women may spend their entire lives taking care of other people. You can help them create strategies to plan for their future and help protect their retirement assets. An LTC Insurance policy can help protect their assets and help them maintain independence in the future.
 
To increase your reach and help your female clients take the first step to long-term care planning, consider these scenarios:
  • Married Couples: Husbands often need care first, leaving less assets for the wife to use for her own care. Review your clients’ long-term goals to ensure both parties have a care plan for the future.
  • Same-Sex Couples: Current financial planning rules can make it tricky to access a partner’s assets when care is needed. Help your clients design a plan to share each other’s benefit dollars.
  • Widowed/Divorced: When a woman becomes divorced or widowed and has no children, there may be no one to take care of her. Almost 70% of women age 75 or older are widowed, divorced, or never married, compared to only about 30% of men. Explain to your female prospects the value of Long-Term Care planning and how a policy can help them protect their future.
  • Adult Children of Aging Parents: In helping adult children with their own LTC planning, they can purchase coverage and have access to our Caregiver Support Services Benefit, which is a great source for advice and helpful information should a long-term care event arise for an uninsured family member, especially Mom.
Reasons to Plan
  • Nearly 60% of LTC Insurance policies are issued to women, indicating that women are acknowledging the need for care.
  • 79.1 years is the current life expectancy for women. The current life expectancy is 73.2 years for men.
  • For every 100 men in U.S. nursing homes, there are approximately 178 women. 
Expand Your Target Market
 
Look for local women’s organizations in your area and consider hosting an LTC planning seminar to educate women on the risk of not having a plan and the comfort of having one.
 
Contact Us
 
Our expert team can offer advice on discussing Long-Term Care with women and how to approach their concerns. Contact us today to learn more.
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Are You Asking The Right Questions?

Bringing up the subject of Long-Term Care (LTC) Insurance is not always easy, but changes may have happened in your clients’ lives that make this the year to talk about LTC.

The annual financial review is a great time to discuss changes that may have occurred over the past year, and proactively plan in anticipation of events that may impact the success of meeting set goals.

Here are six easy questions you can ask to help get the conversation started:
  • Have you incurred additional expenses because a family member or friend needed care?
  • Have you needed to adjust your work schedule due to a family member or friend requiring supervision or assistance with activities of daily living?
  • Have you recently moved a parent or loved one into an assisted living facility or nursing home?
  • Have you recently become an empty nester?
  • Are you preparing for retirement?
  • Are you concerned with the government changes in healthcare and its inability to deliver a long-term care plan?
A ‘yes’ answer to one or more of those questions should help your clients realize that planning for an extended health care event with a long-term care policy makes sense. In fact, long-term care is not getting old or living in a nursing home – it’s about receiving the care you want, when you need it.
 
Proper planning will ensure your clients won’t have to depend solely on family or friends for unpaid care, or spend down most of their assets to qualify for government assistance. The benefits of a long-term care policy will help cover the costs of the care.
 
Long-Term Care Insurance provides security to families in the event of an untimely health event. Get the conversation started by asking your clients the right questions at their annual review. As a result, you may discover changes in health or planning opportunities based on anticipated needs.
 
Make certain your clients have the right LTC plan in place to meet their needs. Contact your LTC Sales Rep for more information.
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Home Care – A Compelling Story

There is a growing movement among health care providers that underscores something we in the Long-Term Care industry have known for years: helping chronically ill people receive the care they need while remaining in their homes is not only what people prefer, but can also be more cost effective than facility care.
 
Compassionate Care
 
According to an article in The Atlantic magazine, home based care is gaining traction as “a more humane, effective, and affordable health care system” than traditional nursing home care.
 
We understand that your clients want to maintain their independence. They want the freedom to make decisions about how and where they receive care.

While health and long-term care insurance differ in services that they provide, we believe that home care benefits are very important.

Today’s LTCi policies contain many benefits that will help your clients remain at home: access to a care coordinator, respite care to give volunteer caregivers a break, homemaker services, caregiver training, as well as extra funds to help pay for home modifications, medical alert systems or durable medical equipment.
 
These built in benefits are a compelling reason to purchase an LTCi policy, especially for high net worth clients, as they provide added peace of mind for family members.
 
Start focusing on the benefits instead of the premiums – call your LTC Sales Reps today for further discussion.
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Why You Need To Talk About LTCI

Most people envision themselves living a long life, investing and planning throughout their working years to create a financially secure future where they can enjoy spending time doing their favorite things.
 
As part of your client’s financial planning process, it’s important to understand the potential impact that needing long-term care may have on their assets, their family, and their future.

The reality is, as people start to live longer, the greater the likelihood is that your clients will require long-term care.

The costs associated with long-term care are significant.
 
While it can take decades to accumulate the assets they’ll need to retire comfortably, just a few years of paying for long-term care may threaten a lifetime of savings.
 
If you’ve ever been in a care-giving situation, you understand the physical and emotional toll it can take. While providing care to loved ones is an act of compassion, placing these burdens on spouses, children and other family members can create a significant emotional and physical strain, and is something that many people would like to avoid.
 
Don’t wait to address your client’s long-term care needs.
 
Incorporating Long-Term Care Insurance into financial plans today can help protect assets, reduce the burden of care that would otherwise fall on family members, and enable clients to receive care in the setting they most prefer, including their home.
 
Perhaps the greatest benefit: Long-Term Care Insurance allows loved ones to care about, rather than care for, each other.
 
We’re here to help you design a plan that is both affordable and the best solution for your clients’ needs – contact your LTCi Sales Reps for guidance.

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