Long-Term Care
Which carrier(s) offer CICA and what does it provide?
Securian
Ability to add CIA onto the permanent product at conversion without additional underwriting
When accumulation is the goal of the policy, do we use CVAT or GPT?
Bonus Points: Why?
GPT
GPT allows more premium into the policy since it's comparing premiums to the death benefit (instead of CVAT comparing cash value to death benefit)
What are the 4 Key Components of Success?
1) Accuracy
2) Availability
3) Partnership
4) Advice
What is an Endow solve?
Solving to get the Cash Value = Face Amount at a specified period of time (usually at Life)
What is the difference between reimbursement and indemnity
Reimbursement - Benefits up to qualified LTC expenses; receipts required; no informal care
Indemnity - Benefits up to full monthly benefit without receipts; informal care is allowed
Prudential Custom Premier II
Lincoln AssetEdge
What are the 4 elements of Life Insurance 10X?
1) Carrier Selection
2) Competitive Underwriting
3) Customized Design
4) Policy Management
What does it mean when a policy hits corridor?
The cash value has exceeded the face amount/death benefit and pushes the DB by the extra amount.
What are the benefits of Traditional LTC?
- Provides the most affordable coverage
- Significant customization
- Inflation protection available
- Offers Shared Care
What kind of solve is used in an accumulation design?
$1 at Life
Explain the purpose of the Choosing an Earnings Assumption piece.
Provides the rates of returns for 30 year rolling periods by product type and asset classes assumed, along with the reliability of those returns.
What 2 products are commonly used with cash value solves?
JH Protection UL
Prudential Essential UL
What is unique about each Hybrid LTC product below?
- Securian SecureCare
- Nationwide CareMatters II
- Lincoln MoneyGuard III
NW - Retroactive benefits paid for 90 day elimination period
Lincoln - 0 Day elimination period
Why is MEC status important for an accumulation design?
MEC will cause tax status to change from FIFO to LIFO (pay on gains first), plus a 10% penalty for withdrawals of gains before 59 1/2
What does PMC stand for and what do they offer?
Policy Management Company
Offers inforce policy management solutions for advisors for a fee per policy
Why would a client want to backdate a policy? What is the drawback?
Backdating will preserve the client's prior age - saving money in premium
Will cause the policy date to be earlier, so Year 2 premium will be due on the policy date (can be earlier than 1 year)
On Page 3 of the LTC Module: How is the red "Total Estimated Cost of Illustrated LTC Event" calculated?
Assuming 3% annual inflation, estimated costs are calculated for years 1-4 according to type of care assumption.
On graph: sum of each plus sign
Which death benefit is used for accumulation designs: level or increasing/variable? Why?
Increasing during premium/accumulation years, level during distributions
Clients can better max fund the policy with a variable DB, level DB reduces the net amount at risk/COI
How does Concierge Services assist advisors/clients?
Streamlining the application process by completing application paperwork, checking for accuracy/completion, scheduling exams, etc.
What drives the performance of the following products?
- Current Assumption UL
- GUL
- VUL
CAUL - Crediting rate in the carrier's general account
GUL - Premium payments that guarantee the death benefit
VUL - Investment performance in the separate account