LAKEVILLE, CT — Recently Pacific Life improved their product (Choice 100), which now, at claim time, gives the insured the flexibility to choose between reimbursement or indemnity benefits. The indemnity model results in a 20% reduction of benefits, but for many people this (indemnity) provides an opportunity. From an actuarial perspective, the 20% reduction is “cheap”.

In addition Minnesota Life (Securian) is moving aggressively into this space with their indemnity model. Preliminary benchmarking shows they are competitive across a broad spectrum. They now allow a 15 pay model, and 5% compounding is available at near every premium/age point. With all carriers in this space, the 5% compounding does not pick up steam until the older ages at claim, but for those with longevity it is the way to go.

But many people do not perceive they will live into their 90”s. Which product, with what permutation, is best? It depends….

And this is why comparisons can be confusing.

I constantly have to test virtually all carriers for my clients, and I need to explain how some perform better at older claim ages, and others are superior when a claim is in initiated before age 85. At times, in an effort to serve the client, I may go overboard and risk confusing them. But it is my personal belief that this insurance can cost a lot of money, and the client deserves a very thorough education. It happens, rarely, but now and then I may lose the client by trying to do what is best for them. There may always be an education gap. I certainly believe most of my clients appreciate my thoroughness.

So at the end of the day, for a 65 year old female living alone, which product is best? I told you, it depends. You must go through the positives and negatives of any product, and guide the client to the proper decision- for them.

Call me toll free at 1-888-793-6111
OR e-mail me at
helpme@retirementguard.com

Craig Davis, President, RetirementGuard
Craig Davis
www.hybrid-ltc.com