Long Term Care, Critical Care, Life, & Annuity Solutions for Brokers, GA's & BGA's


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Traditional LTCI, Combo LTCI, Hybrid LTCI

Traditional vs. Combo LTCI


A broker had a client age 70 in average health that had been shown an annuity product with a long term care rider. The client was ready to deposit $200,000 that was going to earn 3.0% net interest (4% - 1% to pay for LTCI rider). The LTCI rider would provide $5,000 per month for 50 months (total pool $250,000). The other agent had explained “this is a great product; if you need LTCI you have coverage or if you need income off the annuity you can have that.

Our Solution:

We recommended the broker show the client the benefits of having a separate annuity PLUS a standalone Long Term Care Insurance policy.

  • Place $200,000 in an annuity earning 4% interest; this generates $8,000 per year in interest.
  • Buy a LTCI policy that had a benefit pool of $262,800 that could be accessed at a monthly rate of $5,475 for 48 months or at a rate of $5,000 for 52.5 months.
  • Using TAX-FREE Partial 1035 withdrawals to pay $2,705 for LTCI policy from the annuity.
  • OR add a 5% simple increase rider and pay through TAX-FREE Partial 1035 withdrawals $3,979.

How Plan was implemented:

  • Broker asked the client following questions:
    • Did the other agent explain that if you use the policy for Long Term Care you lose the value of the annuity?
    • Did he explain that if you use the annuity you lose your long term care coverage?
    • Did he explain that since you are required to use your money first (principle and interest) that you may never collect any of the LTCI benefits?
  • Broker then explained the obvious benefits of having two separate policies that provided many more benefits. They then took 2 applications one for the annuity and one for the LTCi policy.

Result & Benefits Provided:

  • Client can pay for LTCi by using TAX-FREE Partial 1035 Exchanges from the annuity.
  • If client needs LTC they get to keep their annuity and 100% of the interest as the waiver of premium pays for the LTCI. If they need income off the annuity they get to keep their LTCI.
  • Broker did the right thing for their client AND got paid two commissions.


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Insurance Advisors, Inc.

Phone: 614.471.7191, 800.471.7191
E-mail: info@ialtc.com

Long Term Care Insurance

  • Co-Founders of America's Long Term Care Insurance Experts
  • IA Sits on the American Society of Actuaries LTC Think Tank
  • Developed methods, systems, and sales tools to aid in your success
  • New & Veteran agents find success working with us Click to learn more

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Insurance Advisors Co-Founder of
America's Long Term Care Insurance Experts
Employer Sponsored LTCI (Multi-life)
Insurance Advisors, Inc.
Individual Long Term Care Insurance

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Insurance Advisors, leaders in LTCI, is a long-term care insurance broker based in Columbus, Ohio. We specialize in Individual LTCI, multi-life long term care insurance, group LTCI, Traditional LTCI and Combo LTCI, and key person long-term care insurance. Our LTCI brokerage has helped find long term care insurance solutions since 1994. Contact us for a free quote or more information. LTCI brokers Columbus Ohio, Bexley, worthington, Lewis Center, Powell, Gahanna, Bexley, Dublin, German Village, Grandview Heights, Granville, Grove City, Groveport, Hilliard, New Albany, Pickerington, Powell, Reynoldsburg, Upper Arlington, Whitehall