Your Client Received An LTCI Premium Increase Notice. What's Your Advice? LTCI Class 1

Before Taking Class 1  

Below is a one-minute video about the LTCI evaluation report advisors can output for their clients. The sample report provides crucial analysis informing how to evaluate LTCI policies. 

Class Description: Your Client Received An LTCI Premium Increase Notice. What's Your Advice? 

LTCI Class 1 in a two-part series.

 Long-Term Care Insurance (LTCI) has been available to consumers for less than 50 years. With little historical data to draw from in pricing policies, insurers over the last several decades often made overly optimistic assumptions. As a result, today's LTCI policy owners often are receiving premium increase notices. They are forced to accept lower benefits or to pay more to keep their current benefits.

The learning objective of this class is to show practitioners how to give the best advice when a client gets a premium increase notice for an existing LTCI policy.

Participants learn about key concepts in valuing LTCI policies. Case studies demonstrate how to move from before-tax to after-tax results, how to move from benefit-cost ratios to scenarios, and how to incorporate additional information.  

●  Introduction (5 minutes)
●  Valuation of LTCI policies (30 minutes)
  -  Overview of multi-state modeling
  -  What are the states?
  -  What are the transition probabilities?
  -  Discounting for probability of occurrence and time value of money
●  From valuation to advice: Case studies (45 minutes) 
 -   Moving from before-tax to after-tax results: Adjusting the numerator and denominator of the benefit/cost ratio
  -  Moving from benefit/cost ratios to scenarios: What is the plan for each path from good health to death?
  -  Incorporating additional information: Health, policy features, other resources, personal experience
●  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 1.5 hours of CFP® CE, PACE credit toward the CLU® and ChFC® designations, 1.5 hours of CE credit towards the CIMA® and CPWA® certifications, and 1.5 hours of live CPA CPE credit.