LTCI Partners Monthly Poll - January 2012

BACKGROUND: On our January 19 Conference Call, carrier experts will discuss the LTCi claims process.

Comments

[Carol Murin]

I believe the best way to help clients have appropriate AND affordable LTCI plans, is to use a daily/monthly benefit that represents approximately 80% of the average cost of a nursing home with the inflation protection option best suited to their application age. i.e. Younger applicants (ages below 60 years) should consider a 5% compound inflation protection option, those between the ages of 60 and 70 should consider 5% equal, and over age 70, 3% compound or a higher daily/monthly benefit may be more appropriate. Obviously, these are not hard and fast rules--only the guidelines that I use in my approach to plan design. Many factors need to be considered when suggesting inflation protection and policy benefit options. Is there a spouse who may need additional lifestyle resources? Does a shared plan option make sense for the couple. Is there a significant age difference between the spouses, or is this a second marriage situation? Do the clients have specific legacy issues that need to be considered in their plan design, or any children/grandchildren with special needs that will require use of existing assets. Are there sufficient assets/income to cover the difference between what the cost of care will most likely be and what the policy will pay at the time of claim. Having experienced 120 claims from my book of business, this philosophy has served my clients well. Also, having been through two rate actions, this plan design practice has provided more options to help the client determine whether or not to accept the increase in premium, or choose a lesser benefit in order to keep premiums at a more affordable level, while at the same time providing meaningful benefits. It would be wonderful to have the "crystal ball" in order to know what is exactly right for each client, but we will never have that luxury. Asking probing questions, taking time to understand client concerns, and keeping premiums affordable are all important, and where the knowlddge and expertice of the agent add value to the client experience. The most important role of the agent is to evaluate all these issues, and then make appropriate, affordable recommendations to the client.