Comments on: Beware of the Amazing Vanishing Insurance Benefit http://www.bjfim.com/2008/blog/case-studies/beware-of-the-amazing-vanishing-insurance-benefit/ The Go-To Team for Long Term Care Insurance Brokerage Sat, 05 Jun 2010 21:40:32 -0700 http://wordpress.org/?v=2.9.1 hourly 1 By: Barry J. Fisher http://www.bjfim.com/2008/blog/case-studies/beware-of-the-amazing-vanishing-insurance-benefit/comment-page-1/#comment-15 Barry J. Fisher Fri, 22 Feb 2008 06:54:35 +0000 http://bjfim.in-the-works.net/?p=130#comment-15 Thanks for your thoughts Monte. I can tell you that in most surveys consumers who purchase LTCi perceive it as protecton for their retirement income stream. So while it is for unexpected costs perception trumps reality. Again, let me reiterate that I'm not suggesting any sort of wholesale replacement. I just find that many agents who have sold DI successfully continue to struggle with the LTCi sale. It is one of those mysteries of life! BJF Thanks for your thoughts Monte. I can tell you that in most surveys consumers who purchase LTCi perceive it as protecton for their retirement income stream. So while it is for unexpected costs perception trumps reality. Again, let me reiterate that I’m not suggesting any sort of wholesale replacement. I just find that many agents who have sold DI successfully continue to struggle with the LTCi sale. It is one of those mysteries of life! BJF

]]> By: Monte Merken http://www.bjfim.com/2008/blog/case-studies/beware-of-the-amazing-vanishing-insurance-benefit/comment-page-1/#comment-14 Monte Merken Thu, 21 Feb 2008 23:51:44 +0000 http://bjfim.in-the-works.net/?p=130#comment-14 You're only partly correct. LTC pays for new potential costs while DI replaces existing income that is needed to fund LTC, Life,Health & all other forms of insurance ...hence current income replacement. Also, most DI COLA benefits increase annually as do the premiums (slightly) for the policy while exercising them. Finally, most of the better DI policies offer multiple levels of COLA, ie. 3 to 7%. With Di vs LTC we're talking apples and oranges here. Finally, two other points, people are working longer and certain companies ae offering DI to older ages (ie. up to 75 in some cases). Lastly, you better have great E & O if you recommend that someone discontinue DI in favor of LTC. It would be better to offer both or modify the LTC proposal to reflect a "less than lifetime" solution(Where have I heard that?)with a longer elimination for facility care (as I do) with a shorter elimination period for home care. MM You’re only partly correct. LTC pays for new potential costs while DI replaces existing income that is needed to fund LTC, Life,Health & all other forms of insurance …hence current income replacement. Also, most DI COLA benefits increase annually as do the premiums (slightly) for the policy while exercising them. Finally, most of the better DI policies offer multiple levels of COLA, ie. 3 to 7%. With Di vs LTC we’re talking apples and oranges here. Finally, two other points, people are working longer and certain companies ae offering DI to older ages (ie. up to 75 in some cases). Lastly, you better have great E & O if you recommend that someone discontinue DI in favor of LTC. It would be better to offer both or modify the LTC proposal to reflect a “less than lifetime”
solution(Where have I heard that?)with a longer elimination for facility care (as I do) with a shorter elimination period for home care.

MM

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