LTC Funding: How To Compare Standalone LTCI, Hybrid Policies, LTC Riders, and LTC-Enhanced Life Income, Class 2

Standalone long-term care insurance sales have plummeted, as people have moved to other insurance solutions to manage the risk of long-term care expenses. How can you make sense of these alternatives? This class shows practitioners how to extend the valuation process for standalone long-term care insurance to other insurance solutions. Before attending this class, it is recommended that participants first complete the class titled, “LTCI: Your Client Got a Premium Increase Notice. What’s Your Advice?”.

●  Review of LTCI valuation process (5 minutes)
      - Overview of multi-state modeling
      - Valuation of LTCI benefits and premiums

●  The case for standalone LTCI (10 minutes)

      - Past price increases are not likely to be repeated

      - After-tax benefit/cost ratios can be compelling

      - "Use it or lose it" is a strange criticism of insurance

      - New designs are possible

●  Analysis of hybrid policies (15 minutes)

      - Breaking the policy into LTCI and non-LTCI components
      - Moving from before-tax to after-tax results
      - Limitations on the analysis of hybrid policies

●  Analysis of LTC riders (5 minutes)

      - Breaking the policy into LTCI and non-LTCI components
      - Limitations on the analysis of LTC riders

●  Analysis of LTC-enhanced life income (5 minutes)

      - Breaking LTC-enhanced life income into LTCI and non-LTCI components
      - Three ways to get LTC-enhanced life income:
        ◌  Commercial annuities
        ◌  Redesigned defined-benefit pension plans
        ◌  Redesigned Social Security

●  Looking at the bigger picture (10 minutes)

      - Insured population versus general population
      - LTCI claim triggers versus total LTC expenses

      - Care receiver versus caregiver

      - U.S. versus other countries

●  Q&A (10 minutes)

Glenn S. Daily is a fee-only insurance consultant and the co-founder of Tell Us The Odds, LLC, an online platform for analyzing LTCI policy options.
 

This webinar is eligible for one hour of CE credit towards the CIMA® and CPWA® certifications. CFP® CE, PACE credit toward the CLU® and ChFC® designations, and live CPA CPE credit.