June 8 Self-Directed Power Lunch Recap

The relaunch of our Self-Directed Power Lunch (SDPL) meetings are off to a fast start. At our SDPL meeting on Thursday, June 8 2017, co-host Isaac Deutsch Account Executive, Brokers Central LLC did a fine job addressing the hot topic of Traditional LTC vs Hybrid LTC and Linked LTC products. Following is a list of topics discussed along with links to handouts:
Do you have a speaker you would like to recommend? Better yet, ask us how you can be the co-host and present at one of our upcoming SDPL meetings! To be put on a priority SDPL invite list, make sure to drop us a note with the topics you would like to learn more about at future meetings.
Brief introduction to the recent history of traditional LTC products: We started the meeting with a brief introduction of the recent history of the traditional LTC marketplace. We discussed some of the main factors driving the exodus of carriers from this space and the trend of increasing premiums on both new and in-force LTC policies. Some of the driving factors include: 1) Modern LTC policies have only been around for 25-30 years, giving actuaries and underwriters a relatively short duration to establish best risk decision making and claims experience 2) Carriers have been surprised by the extremely low lapse ratio with LTC products 3) The persistent low interest rate environment is having a direct impact on LTC products as it is on the rest of the world of finance and insurance. These are some of underlying reasons for what some see as an almost collapse of the traditional LTC product space. Still, as discussed the need for LTC planning is as critical for our clients as it has ever been. We also touched on the history of individual DI products; back in the 1980’s there were 80+ carriers in the IDI space, in today’s market place there are now fewer than 10 well known players in this space. Still, the IDI space has proven to be  profitable for the carriers who have figured out how to underwrite and properly price IDI products. We made reference to an article published by yours truly on this topic back in 2012; LTC or Bust My Thoughts. I would also reference a good article on the topic from my friend Marc Glickman VP of Business Development at LifeCare entitled IDI Déjà Vu. To sum it up, this has in part given rise to broad market offerings from a range of quality carriers in the Hybrid LTC products, LTC riders, Chronic Illness riders space and more. Availability of traditional LTC products: Traditional LTC products are still very much available from mainstay carriers such as; Genworth, Mutual of Omaha, TransAmerica in the brokerage marketplace and from MassMutual, Northwestern Mutual and New York Life in the career agent space. One of the most new and exciting products in the space is from National Guardian Life developed with LifeCare. This new LTC Essential product offers a range of highly attractive features, such as Lifetime Benefits, Single Pay or 10 Pay design options. Here is our NGL LTC product launch announcement. Note: this product is not available in NY at this time. Opportunities with individual DI sales: We notice often that our brokers will do a fine job at discussing their clients Life Insurance needs, yet, similarly to LTC, brokers often overlook the need for Disability Insurance planning. We touched on multi-life DI opportunities which offer your clients a 10-15% effective discount and an incentive for your client to happily refer you to their colleagues. We also discussed how the renewal commission on IDI products can result in some serious income as they can reach 15% annual comp for the life of the product. At Brokers Central we are DI experts! If you are a New York Life agent, ask us about a special promo exclusively for NYL agents during the months of June and July. Traditional LTC vs Hybrid LTC and Linked LTC products: Hybrid products and LTC riders are a very hot topic with clients… consider asking your client one of the following questions: Do you have the old or new life insurance? or Have you thought about being the beneficiary of your own life insurance policy? These questions can help you open the important conversation about planning for Long-Term Care needs by utilizing one of these options. Here is a sneak preview to our own comparison charts: LTC Rider Comparison Chart and Hybrid LTC Product Comparison Chart These charts are still in draft format, we will notify our brokers when these are complete. Please let us know what you think of the chart (format and list items shown). To be notified of chart updates and the launch of our updated LTC webpage, be sure to sign up for our newsletter. Traditional LTC tax incentives: (coming soon)