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Linked Benefits Overview

Life or Annuity Based

Linked Benefit Products can be life or annuity based:

Life-based:  This has a life insurance chassis where the client has a death benefit like a traditional life insurance policy. The client also has an LTC benefit that is accessible when needed, which may reduce the death benefit.  This is typically simplified underwriting, or could be fully underwritten, just like life insurance.

Annuity-based:  This is a true annuity with an LTC benefit.  There is a surrender charge schedule and the client is quoted a first year fixed annuity rate with a guaranteed minimum renewal rate.  The annuity value will grow over time, and guarantees a minimum LTC benefit.  This is typically simplified underwriting and will result in a decline or approved status after the underwriting process.  Benefits used for LTC are non-taxable, but benefits covered could be more limited than that of a traditional LTCi policy.

Underwriting Requirements

Underwriting requirements will differ between various insurance companies.  On life-based Linked Benefit products, simplified and full underwriting is available.  On annuity-based Linked Benefit products, simplified underwriting is used to determine an approval.  Many of the insurance companies will have guidelines to assist advisors with the underwriting process.

Contact IPG directly for specific questions about your clients.  We will help you pre-qualify your clients so that you are equipped with all the options available.

Alternative Solutions

In addition to linked benefit products, IPG also offers alternative solutions to solve the long term care needs for our advisors’ clients.

We have many top-notch insurance companies that offer life with long term care riders.  These riders oftentimes do not cost much more to add on to the base life insurance policy.  If your clients need long term care, be sure to ask for a life insurance quote that includes an added LTC rider.  To sell the LTC rider, an advisor must have completed the required LTC training for the state the business is being written.  Click HERE for training requirements.

In addition to life with LTC riders, IPG also has annuity solutions that are provided using an income rider with an index annuity.  Many income riders include an income doubler for confinement or will increase the client’s lifetime income for added benefits.  Keep in mind that these riders are currently only available on index annuity income riders and that the benefit does not fall under the Pension Protection Act.  Income will be taxed, even if it is being used for confinement purposes.  These income riders are triggered in the event of confinement, not ADL triggered.

Call IPG today to talk to one of our specialists about these additional solutions for LTC needs.