Life Insurance and Long Term

Care
Presented by Mike Ferrell, CEO
Strategic Benefits Group, Inc.
Bloomington, MN

1
Background

 Strategic Benefits Group is a life and

long term care brokerage company
representing several different insurance
carriers
 13 years of experience on LTC
 Primary area of work is Estate Planning

2
The Basics of Life Insurance

 Primarily two different types

 Term Insurance
 Renting temporary coverage
 Permanent Insurance
 Has Equity
 Cash Value has many uses

3
Other Options

 Most insurance policies have options

that an individual can add on to a policy
such as:
 Children’s riders
 Disability waiver riders

 Family and spouse riders

 Terminal Illness riders

 Accelerated Death Benefit Riders

4
Long Term Care Funding Options

 Permanent Life Insurance can be used

to fund long term care costs
 Withdrawals can be used from cash value
 Loans against the policy

 Transferring the cash value into an annuity

that pays out an income stream to pay the
LTC costs

5
The Newest Type Of Life Policy

 Linked Benefit Policies

 A Life Insurance policy that has a specific
benefit for Long Term Care
 Some use an accelerated death benefit,
some have an actual long term care benefit

6
Linked Benefit Policies
 Pro’s
 Give clients flexibility
 Clients get death benefit, LTC benefit and can
access cash value if needed
 Guarantees the premiums
 Get a benefit if they never use it for LTC
 Con’s
 Funding is typically done on a single premium basis
 Death benefit can be reduced by LTC claims
 Underwriting

7
Industry Trends

 As insurers continue to struggle with

pricing for long term care insurance,
linked benefit policies will be a cost
effective way for them to go
 As clients continue to see LTC premiums
increase, life insurance and linked
benefit products will become an
attractive alternative