Life Insurance w/LTC & HHC Benefits!

Life Insurance riders that offer benefits to our clientele for Long Term Care & Home Health Care is the latest cutting edge guarantee in our industry. Allianz Life has products designed to offer the insured the ability to tap into their death benefit, prior to death, receive tax free income, to pay for LTC /HHC expenses. As a producer, you have to be well schooled on this new concept in LTC and Life Insurance Planning.

Most long-term care insurance is purchased as a stand-alone policy, but some companies that sell life insurance now offer riders that provide benefits if your client were to need long-term care. The rider lets your client take "an advance" on their death benefit if long-term care or Home Health Care becomes necessary. The rider makes it possible to accelerate payment of the death benefit in this situation. The death benefit for your client's life insurance policy is reduced by the amount used for LTC expenses, along with a small service charge. If your clients need long-term care for a lengthy period of time, the death benefit will eventually be depleted.

These riders differ from company to company. With some, the policyholder collects a percentage of the death benefit each month. For instance if you sell a $500,000 death benefit and the percentage is 1%. The monthly payout for LTC/HHC is $5,000 per month. The 5K would be deducted dollar for dollar of of the death benefit . With others, long-term care expenses are reimbursed as they are incurred , up to the limit set by the rider.

All Global Insurance Agents should get familar with this concept.