Jump to content

can someone help me?


Guest bufhal
 Share

Recommended Posts

Hello;

I hope someone can give me an answer (the LTCI companies will not give me a "ballpark" answer to my question). My question is: What is the difference(percentage) a premium goes up for each passing year a person puts off buying LTCI? For instance, at age 60 with a premium of $2000, how much more will it be at age 65? I know there are other factors and health may change but is there a safe "factor" percentage the premium goes up? (It does not have to be exact as there are many companies offering LTCI)

Thank you for any help.

Link to comment
Share on other sites

Something is very wrong here.

It is a standard part of the "toolkit" available to insurance agents that gives a "Cost of waiting" scenario and it is usually used to show why you should buy now instead of waiting. So I question your inability to get these figures.

However, your post stated that "the LTCI companies will not give me a "ballpark" answer to my question". Since I cannot think of even 1 situation where you would have been speaking to a insurance company, I question the accuracy of your statement.

Insurance quotations etc are done by insurance agents not by insurance companies. There are very few insurance companies that even have a consumer services or other section/dept that would have even spoken to you. They would rather have directed you to a licensed agent instead.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Link to comment
Share on other sites

I dont want to sound morbid or uncaring but here is some food for thought before deciding to get Long Term Care. Because of the costs you might be better off putting your money into savings or a safe investment and make sure you have a good will and if you have alot of assets a trust in place versus the LTCI reason for this opinion (and it is only an opinion) is unless your family has a history of problems developing that require long term care LTCI is a lottery ticket. The amount of money you spend is not recovered if you dont use it, and even if a person does find themself in a long term care scenerio the odds of them staying in the long term care facility long enough to recover the expense of the insurance with any type of return on the investment is about the same odds of winning a lotto ticket. This is a newer product that agents love to sell because the it is a product stacked in the favor of the insurance companies.

Link to comment
Share on other sites

Since agents do not get a cut of the insurance company's profits and do not even know much about the profit structure, it is illogical to think that " agents love to sell because the it is a product stacked in the favor of the insurance companies".

Agents probably try to sell LTCi because they are either afraid of discussing death benefits or are trying to sell something that has less competition. They also try to sell it as Long Term Care, leaving off the insurance in case there is a stigma or reluctance to sit down with an insurance agent. Some conjure images of Woody Allen.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Link to comment
Share on other sites

I agree with your theory that agents sell it because they are afraid to discuss death benifits or insurance in general but one thing you said is partially incorrect and that is unless LTCI is sold differently, the agents do see a part of the profitability of the products in the form of thier commission. As a Financial Advisor I am licensed in Life Insurance and the commissions are higher for products that have a higher profit to the company. I know a few financial planners that sell LTCI because it rewards them with a very juicy commission or so I have been told. I on the other hand in an effort to run my business based off of ethics rather than profit do not sell clients things based on what it will make me, I sell clients products that increase thier value and security. I know it would be easy to scare people into thinking they need the long term care insurance but because I have had access to the stats on LTCI I know that this is not something that my clients should focus on. My clients only have so many resources and the money can be better spent by making more realistic investments with thier money. I still think the benifits of LTCI is a pot shot at least with discussing life insurance I can guarentee that some day my clients will all die. The beauty of what it is that I do as a licensed LEAP agent is I show my clients how to bring the death benifit alive while they are still alive and use it like they would use any of thier other assets. And one thing that makes sense about talking about a death benifit is I ask my clients which would they rather have a 45 page will that can be contested in court and challenged by everyone including Uncle Sam or a check written out to a specific loved one for a million bucks tax-free?

Link to comment
Share on other sites

Why do you think that higher commission reflects higher profit?

Profit is net of commissions. Commissions are part of the pricing, not part of the profit.

Anyhow since you sell LTCi and use the LEAP system, Why not do bufhal the favor of answering his question about the costs of delaying purchasing by using your software to do the illustration?

What makes LEAP better than any other "Selling System"? Which ones have you compared it to?

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Link to comment
Share on other sites

I cannot help out by giving a quote because I do not sell this product, I do not believe in the product. I know a few agents that do but I only see them once or twice a year. As for the benifits of LEAP it comes down to this: LEAP is based off of economic principles and is the only financial system that has a model that can be used to scientifically annalyze each financial decision that is made. This model eliminates opinions, and sales hype and does what is right for the client. If you want more info on LEAP you can go to LEAP systems .com and look into it more but for me to go on really takes us away from the original issue. If you have any other comments or questions email me so we can cover the issues without filling up the message board.

Link to comment
Share on other sites

I am very familiar with the LEAP system and its private label versions. It is not the only system that does what you say there are others.

So since you do not sell LTCi you cannot give an explanatory quote, BUT you do sell Life Insurance, yet on the other thread you cannot give an example of LI for investment purposes in comparison to a Mutual Fund in a Roth IRA. Do you not think that this raises questions about the credibility of LEAP, LI in general and you as their advocate ?

Filling up the Message Board is not a problem. There are very many readers who do not ever post but who use what we post as guidance. As a result the more discussion and disclosure or rationale and reasoning, the better it serves the general community. The only reasons not to post are private issues, or fear of rebuttal, neither of which matter much to me.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Link to comment
Share on other sites

I have noticed that you have threads and input in just about every possible question or comment on this web site so I assume you are very intelligent probably head of a huge successful financial firm all of your clients are very rich and you have never given any of them anything but wonderful advise but when it comes to insurance which you also seem to be well versed in there are reasons why I dont give exact numbers or quotes on a public web site. The quotes I can generate need specific parimeters put in and then my clients sign them so they understand they are illustrations not exact figures. If I were to give some numbers on a public web site even generic numbers I could be held liable. Maybe you are not held to the same level of scrutiny that I am or maybe in your life of successful financial planning you are so wealthy you can afford the risks of everyone that visits this web site generating a lawsuit against you but I cant. As for the credibility of LEAP all I can say is my clients are happy with the results and I know that I treat each of them with ethical practices and do what is right for them. I am new to this web site and found it very valuable because as you said alot of valuable input and ideas are on the site, being new I thought I would put in 2 comments out of over 1000 nothing I said was derogatory yet you have attacked every word I have said. If you want specific numbers try logging on to any Insurance company's web site and ask for some numbers using your personal input maybe the web site will give you what you are looking for. Sorry I cant be more helpful.

Link to comment
Share on other sites

Who would hold you responsible and on what charge if you stated that XYZ Company for a male non-smoker age 28 with a premium of $3,000 per year illustrates $XXX Guaranteed $xxx -y Current at age 65 with Death Benefit of $YYYYYY and which is ZZ% rate of Return?

This would be no different from the numerous very compliant ads that you see in the media. It has everything that is needed under almost any state insurance advertising and solicitation laws that I can think of.

Can you give the names of a few companies whose website allow WL illustrations or quotes to be run by non agents?

I operate in the world of taxation and employee benefits, which is why I am able to cover a few other related areas.

Your clients will of course be satisfied with your results using LEAP. they know nothing else. But that is not the point, You were the person touting LEAP, I only questioned why you thought it was better and what else did you compare it to. This you have evaded answering. Nothing is wrong with LEAP. Only your opinion is being queried.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Link to comment
Share on other sites

  • 4 weeks later...

Hey folks;

thank you for the wonderful replys but BOY are you off the mark. Long Term Care holds a REAL risk - 50% of all people over the age of 65 are going to need it. Granted some for a short period, but many for a long. You really should do yourselves a favour and read up on "the real healthcare crisis" before you blab on a message board for all to read. The Feds even have a program for employees. Keep peddling the coffin plans- but I like to help people recieve the best possible care with a LTCI while they are here. Look at a plan that has 5% compunded inflation rider and tell me a retirement vehicle that can yield the same results. It is not for everybody, but many people do not want to medicaid plan and have set up split annuities to pay the premium with out ANY out of pocket expense.

There really is so much more to it.

And Leaper, just because YOU do not believe in a product, does not mean it is not good.

Thanks again for the replys,

cheers :D

Link to comment
Share on other sites

50% of all people over the age of 65 are going to need it.

Would you be kind enough to provide the source for your statistics?

A brief search on the internet leads me to believe that the 50% figure may be a misinterpretation. My assumption is based on the following:

1) According to information I read from Met Life, "at least 6.4 million people aged 65 or older need long-term care, with one in two over age 85 requiring care. At least half of the population who are 85+ will need help with Activities of Daily Living."

2) There are closer to 36 million people age 65 and older. (See here.) This leads to a result closer to 18% rather than the 50% you indicate.

3) Another website indicates that "most but not all persons in need of long-term care are elderly. Approximately 53% are persons aged 65 and older (6.4 million); 44% are working-age adults aged 18 to 64 (5.3 million); and 3% are children under age 18 (400,000)."

Is it possible that you mean that of the people needing long term care approximately 53% are aged 65 and older?

Thanks for clarifying and/or substantiating your position.

...but then again, What Do I Know?

Link to comment
Share on other sites

bufhal'

You posted "thank you for the wonderful replys but BOY are you off the mark."

How could we have been "off the mark"? The only person who had a comment regarding the use of LTCi was LEAPER and you do not even know his reasons why, as a person who was trained on the issue for his license, he does not believe in the product. He has more material at his disposal that you probably have found so far and he has more people to ask than you could possibly find.

That is not to say that LEAPER is correct, but to say that you very likely do not know enough to criticize him or anyone for that matter. It appears that most of what you have is sales material and sales hype.

Considering what WDIK posted about the statistics, it seems that you might not be getting the facts or you cannot understand the facts. If you cannot get this simple arithmetic correct, then chances are you did not understand much of the rest.

By the way, 100% of people over age 65 will die. Does that mean that they should buy Whole Life insurance instead of Term to 95? NO, it depends on many other factors. So the fact that any % over age 65 will need long term care, does not mean that they need LTCi, added to the fact that there are many forms of LTCi. Do they need Nursing Home only, or Assisted Living Facility coverage only , or Adult Day Care coverage etc etc or What? That they will need long term care without knowing much more leaves you in a position where a rational decision cannot be made.

So the Feds have a program for their employees, What is the participation rate? What sort of coverage is available? Having a program for employees does not mean anything by itself. The Feds have a Civil Service Commission for their employees, Does your employer have one? No, so it does not matter what someone else has. Not knowing anything about the Fed plan yet making reference to it makes it seem that you have been subjected to a lot of sales hype and have not been able to digest much relevant information.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...