1. Asset Based Long-Term Care
Producers Choice offers 3 life insurance based long term care products: Lincoln Financial Group – MoneyGuard II, Genworth – Total Living Coverage (TLC), and OneAmerica – Asset Care.

2. The Big Question
If over 70% of people age 65* and older will require LTC, why do less than 10% of consumers own LTC insurance?**
The first thing that we want to take into consideration is the need for solutions. Most consumers are not protecting themselves from the costs of LTC expenses for a number of reasons. They may believe that they are healthy and will not incur LTC costs, they are going to self-insure, or they know they may need coverage but are not willing to commit to paying more insurance premiums. Many clients feel that they are already over insured and that they do not get benefits from their current insurance policies.
*Source: U.S. General Accounting Office, Long Term Care: Aging Baby Boomer Generation will increase financial burden on state and federal budgets,” March 21, 2002.
**Source: U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, September 2008.

3. Objections to Traditional LTC Insurance
Traditional LTC Insurance is often considered very expensive
Traditional LTC Insurance does not have guaranteed premiums
Client may never use the LTC Insurance

4. Carriers and Products
Producers Choice offers 3 life insurance based long term care products: Lincoln Financial Group – MoneyGuard II, Genworth – Total Living Coverage (TLC), and OneAmerica – Asset Care.

5. LFG – MoneyGuard II “Live, Quit, or Die”
Someone will always benefit from a MoneyGuard policy, hence the “Live, Quit, or Die” slogan.
If the client would like to “quit,” an 80% return of premium is available. Or, if they die, a death benefit will pay out to the client’s beneficiaries. Finally, if they live, the client can usually spend between 4 and 5 times their single premium on long term care.
Quit
Die
Live
65 year old male - $100,000 deposit - Couples Discount

6. This is the summary of benefits that will most likely be used in a client presentation (explain line-by-line).

7. All of the benefits with MoneyGuard II are fully guaranteed
All of the benefits with MoneyGuard II are fully guaranteed. Even though MoneyGuard II is primarily a long term care product, the IRR on death benefit is also respectable at life expectancy (1.8% tax free).

8. A Smarter Alternative to Self Insuring
Sales idea: use one quarter of the money you have set aside to self-insure against long term care as a deposit for MoneyGuard, and you will immediately free up the remaining assets to use as you please.

9. Underwriting Simplified Issue 45 minute Personal History Interview
Only 2 classes: male and female
Incorporates smoker and non-smoker
Incorporates preferred best through table 4
Compensation
Policy issue is more transactional than most life insurance products because the simplified underwriting requires only a 45 minute personal history interview. Additionally, there are only 2 risk classes, male and female, which incorporate both smokers and non-smokers, and all risk classes from preferred best through table 4 non-tobacco. Smokers and clients in the table 2-4 range can benefit from this.
6%, or $6,000 in example

10. Nationwide – CareMatters
Total Long-Term Care Benefit Limit
$389,159
“Live, quit, or die” also holds true with Genworth – TLC. The predominant difference between TLC and MoneyGuard II is that TLC is fully underwritten, and clients in great health can benefit from a 15% preferred discount.
Initial Specified Amount
$129,720 or or
ROP Benefit
$100,000 year 6
Quit
Die
Live
65 year old male - $100,000 deposit - Couples Discount

11. Nationwide – CareMatters: Benefit Overview
Single Premium - $100,000
Long Term Care Benefits –
Initial Monthly: $5,405
Initial Annual: $64,860
Initial Total: $389,159
Inflation Option – N/A
Minimum Long-Term Care Benefit Duration – 6 years
Deductible Period – 90 days
Specified Amount - $129,720
Guaranteed Minimum Death Benefit - $25,944
Return of Premium: $100,000 beginning year 6

12. Key Differences
Benefits are indemnity based – no submission of receipts
90 day elimination period
Return of premium follows vesting schedule:
85% year 1, 88% year 2, 91% year 3, 94% year 4, 97% year 5, 100% year 6
20% guaranteed minimum death benefit if Initial Specified Amount is exhausted
1, 5, and 10-pay options only
3% simple and 5% compound inflation options

13. Underwriting Simplified Issue 45 minute Tele-Interview Compensation
5.5% or $5,500 in example
As previously mentioned, Genworth – TLC is fully underwritten, but the silver lining in the clouds is that healthy clients can qualify for a preferred underwriting class and a 15% preferred discount.

14. OneAmerica – Asset Care Survivorship with Lifetime Continuation of Benefits
For a husband and wife who both desire protection from long term care expenditures, OneAmerica – Asset Care typically offers greater benefits than purchasing 2 separate MoneyGuard II or TLC policies. Another proprietary feature of Asset Care is that the Continuation of Benefits Rider can provide coverage for life, whereas MoneyGuard II and TLC only offer finite benefit periods.

15. Asset Care I features a Return of Premium benefit, however money used to pay for the Continuation of Benefits rider is not available for a return of premium. Even so, the product features cash accumulation that rivals other fixed savings vehicles (4% guaranteed interest rate).

16. Underwriting Simplified Issue
45 minute Personal History Interview (similar to MoneyGuard II)
May require full underwriting if:
Client has not seen a doctor within past 12 months
There is a history of major medical concerns
The net amount at risk is greater than $250,000
Compensation
Underwriting is generally simplified and simply requires a 30 minute Personal History Interview. In certain situations, Asset Care can move to full underwriting (see above for criteria).
Asset Care I: 8%, or $12,000 in example

17. Lincoln Financial Group
Summary
Lincoln Financial Group
Nationwide
OneAmerica
MoneyGuard II
CareMatters
Asset Care
Funding
Non-Qualified
AC I - NQ 1-pay
1-10 pay
1, 5, and 10-pay
AC II - Annuity 1035
AC III - IRA Transfer
AC IV pay, Life-pay
Underwriting
Simplified
Depends
Compensation 6%
5.5%
AC I - 8%
 When to Use
Individual Life 
Individual Life
Joint policy/Survivorship
Couples Discount,
Average or below average health, Smokers
Indemnity Style Benefits
Variety of funding options
Lifetime COB