Blasts & News

There are many changes taking place in the Long Term Care and Disability Insurance industries these days. The information comes from many different sources, and it can be quite confusing at times to put all the pieces together and make sense of it all. At NJLTC we send out several email newsletters , "Blasts" as we call them, a month. We keep our clients, brokers, and producers informed of all the relevant news, topics, and product updates that take place in our industry. Feel free to browse our archive of Blasts and News articles.

State Life Annuities Sep 30, 2020

One of the often-overlooked solutions for Long Term Care is using an annuity to address the LTC need. These are positioned similarly to asset based LTC hybrids – just like how those hybrids are not meant to provide a meaningful life insurance return, the main goal of the annuity is to cover the cost of care, not provide income. These annuity options are not quite as robust as their Life hybrid counterparts, but still are a great solution and offer a meaningful ROI for the right client. Here are a few scenarios in which a LTC Annuity would be a great solution:

  1. Poor health – The underwriting process for Annuities is the most lenient, generally either just knockout questions and/or a phone interview depending on the product. The Annuity has the least strict underwriting of any LTC product.
  2. Older Applicants – while the product is available at an earlier age, this product is a perfect solution for clients age 70-85 that are either looking for coverage or have an “old” annuity.
  3. Clients with annuities – For clients that have annuities that no longer need the income, or want a way to fund LTC without having to tap into their investments, a LTC Annuity is a great answer. You can fund the LTC annuity with either a total or partial 1035 exchange, making the entire exchanged amount tax free when used to cover long term care. Additionally, the new LTC annuity can be structured to cover both spouses, even if the initial annuity was just on one of the spouses.
Attached are a few pieces on Annuity care from One America as well as two general pieces on their claims concierge, and a step by step guide to receiving care.

National Guardian Life Sep 30, 2020

NGL is a company that has been around for over 100 years with significant assets and an “excellent’ rating from A. M. Best. Attached find a consumer brochure, as well as rate comparison to Mutual of Omaha with rates effective 9/1/2020. Below are some key points to remember when marketing National Guardian -

  • Summary
    • Mutual company founded in 1909
    • A- (Excellent) rated by A.M. Best
    • Nearly $4.5 Billion in assets as of 12/31/18
  • Additional Information
    • NGL is based in Madison, Wisconsin, and was originally named “Guardian”. During WWI however Guardian became “National” Guardian after “The Guardian” (the company we now all know so well) was forced to change its name. “The Guardian” had previously been named Germania Life, which turned out not to be so great a name to have during World War I! So when Germania Life became “The Guardian”, that left a Guardian and a “The Guardian”, which just created too much confusion. Therefore, Guardian became “National Guardian Life”, which is the name is still uses to this day.