Case of the Week: Life w/LTC

Congratulations to John Baumgart for the Case of the Week!

This is a great example of solving a long-term care need for a client who also needed life insurance.

The client is a 59-year-old male, and the product sold was AIG’s Secure Lifetime GUL3 with Accelerated Access Solution rider.

Here are some of the highlights from this new gem of a product:

  • This policy is written with a GUL (a guaranteed benefit; premium to age 105).
  • The premium is waived when on claim. (I haven’t seen any other product like this.)
  • There is a 90-day elimination period.
  • You can choose between three monthly payout options: 2%, 4%, or per diem.

Before I go on, it’s important to note that this is not a “use it or lose it” type of policy. You can give your clients some faith in the product by letting them know that benefits will be paid. Those benefits will be via the rider acceleration or the beneficiaries at death (or both).

  • This is an indemnity model, so you can control how the funds are used, which is huge!
  • There is no additional agent licensing needed.
  • The issue ages are 18-80.
  • This is available through Table D.

For this particular case, the face amount was $250,000, and the monthly LTC was $10,000. Keep in mind that this is an indemnity model, so the client has control of the money.

The annual premium ended up being $4,258, and the client is also putting in a $15,000 lump for year one.

This is a huge sale, and it filled a real need for this client. We encourage you all to use our Life w/LTC warm up letter to see similar success with your clients!

Life w/LTC Warmup Letter

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