Long Term Care Insurance Solutions for Agents, Brokers, GA's & BGA's

Key Person LTCI

Problem

A broker of one of our BGA’s had a young client that had taken over the business from his father. The company had five salespeople that were valuable and necessary to the successful continuation of the business. They ranged in age from 52 to age 57. The client was looking for a way to create some sort of “golden handcuffs” that would be 1. affordable and 2. really appreciated by the salespeople. Non-qualified deferred comp was too expensive especially due to 2 salespeople having health issues.

Our Solution:

We recommended a Long Term Care Insurance multi-life plan with:

• Modified Guaranteed Issue underwriting
• 10-Pay option
• Spouses also issued with Modified Guaranteed Issue underwriting
• Provided $3,000 per month with option to buy-up
• Included Compound benefit Increase rider

How Plan was implemented:

• Broker obtained census for salespeople and spouses
• IA prepared multi-life quote options and emailed to broker and explained how they worked
• Mailed broker presentation kits for review with business owner
• Had him set a date for conference call
• Through use of GoToMeeting we made presentation and answered clients’ questions.
• Once owner agreed to a plan option we set a time for another GoToMeeting with salespeople and spouses;
  each logged in from their home computer so we could explain program to both employee and spouse at the same time.
  • We explained what a fantastic benefit this was for them
  • We explained how their retirement and other assets were protected under the Partnership Plan
    due to employer choice of plans
• Broker took applications; IA scrubbed apps, submitted and processed through underwriting. Broker delivered policies

Result & Benefits Provided:

• All health issues became non-issues due to MGI underwriting
• Both employee and spouse appreciated what company was doing for them
• All Plans were Partnership Qualified thus protecting retirement and other assets
• 10-pay option encouraged salespeople to stay with company till retirement
• Premium for all 10 policies was affordable