If someone were to tell you that long-term care insurance was less expensive than dental coverage you might have responded ‘when pigs can fly!’ Now, you may need to eat your hat on this one!
As I mentioned last week our new Loyal American long-term care insurance product will be released for sale on September 15th. One of the product’s strong suits is guaranteed issue at 25 employer-paid lives. We have begun preparing proposals for our brokers and frankly we are amazed at how low-cost the premiums are particularly in relationship to other employee benefits that are commonly provided. We’ve come to the conclusion that if you can sell group dental insurance and other ancillary employee benefits you can now certainly sell multi-life long-term care insurance; cost is no longer an issue.
One example, a small college, is interested in providing a core benefit buy-up plan for their 250 employees. The base plan illustrated provides $50/day for three years ($54,750 benefit pool), 90-day elimination period with a guaranteed purchase options (which allows the insured to increase the benefit by 15% every three years on a guaranteed issue basis); average cost per employee’ The price per employee; under $13 per month! A two year benefit plan (initial benefit pool of $36,500) but with an automatic 5% simple inflation rider would cost the employer about $23 per month per employee. These premiums do not include a 25% discount if the employee’s spouse qualifies (on a modified issue basis) for coverage as well.
Let’s put these premiums and benefits into perspective. What does a dental insurance plan cost an employer today’ $15 to $20 per month per employee’ Maybe more’ And after all of the deductibles, co-insurance and annual maximums how much does the plan really pay-out in benefits’ Additionally, can employees buy-up benefits if they want more’ No. Can they keep the plan if they change employers or retire’ Maybe, maybe not. Regardless of the fact that this employer’s core long-term care insurance plan provides seemingly small initial benefits the fact remains that (1) the benefit in relationship to the cost is high and (2) the long-term care program is something the employee can keep and build on. It gives you an opportunity to create a vested Multiple Stream of Income and a perpetual referred lead machine because the employer sponsored plan discounts are also available to family members!
You may be surprised to know that employer provided long-term care insurance has become the most frequently requested benefit by employees. A core benefit buy-up plan provides employees with a start towards fulfilling their LTCi needs and it is a low cost benefit that employers can provide with confidence.
Contact your BJFIM/Paradigm marketing representative for details on all of our exciting multi-life programs where we can provide you with significant underwriting concessions on groups down to three lives!
Time is running short for you to register for our upcoming Multiple Streams of Income continuing education and sales seminars on September 25th and 26th. Click on the link above for more details. REGISTER TODAY!
Tomorrow’s Blog: Why Multi-Life long term care insurance is better than True Group.