We did it!
The LTCI Partnership Legislation that was proposed by Newman Long Term Care was signed into law by Governor Dayton last Tuesday. These amendments to our existing law will go into effect on July 1 and this will be an incredible opportunity for agents who are ready to capitalize on it!
What is changing?
Beginning July 1st, the minimum level of compounding inflation required for ages under 61 in the partnership program will drop from 3% to 1%. Click here for our full press release on the new law.
What is the actual price difference? Premiums for a 55 year old couple (male and female):
|
3% Compound |
1% Compound |
|
$4,941 combined |
$3,287 combined or $137/month each! |
That’s 1/3 less expensive!
This comparison shows a $170/day, 90 day EP, 3 year total benefit designed for today’s current HHC costs, quoted with Mutual of Omaha in May 2015.
Why is this important?
- The #1 reason people don’t buy LTCI is because the premiums are too high.
- Home care costs are increasing less than 1% annually in Minnesota over the past 5 years.
Which companies offer lower inflation levels that would qualify?
- Genworth offers 2% Compound Inflation
- Mutual of Omaha offers 1%-5% Compounding in .25% increments (allowing you to really dial-in the premiums)
Watch your email for upcoming training opportunities on the Genworth and Mutual of Omaha products in June!
Next steps?
Over the summer, consumers will learn about this change. NOW is the time to take a look at prospects who previously said NO to coverage, and offer them a new, more affordable option.
Contact us today to design a plan that meets these new partnership requirements! Don’t let your clients hear about this change from one of your competitors. Let us know what we can do to help you take advantage of this opportunity!
Sincerely,