Allow me to introduce you to an annuity with a Long Term Care Rider. There are a few companies with this fixed annuity/LTC rider product. There are also many on the drawing board. In its simplest terms, it is a product that first uses your client’s account value to handle LTC needs. It then offers to match or double the benefit through the use of a rider. The premium for this rider is deducted from the account value. Underwriting is less restrictive, premiums are usually lower and it is not a “use it or lose it” policy. The account value of the fixed annuity is available to your client should they desire to surrender. It provides your client with coverage in the event of disaster and it is easy to ‘talk about.’ It will also keep you out of hot water and litigation should your client need coverage and the heirs find out you never discussed the issue. Plus, it’s the right thing to do.
Some in our industry might see this situation as a problem to deal with. I view it as a tremendous opportunity. We have many retirees that can’t afford or refuse to pay long term care premiums. This solution gives them the necessary coverage, allows you to fill the gap in their financial plan and will allow both the client and you to sleep well at night. What’s the first step? A little education on your part, a modification to your marketing plan and a little conversation. Not sure where to start? I’ll give you a hint: Pick up the phone,
give us a call and let’s talk. Because if you don’t someone else will.