This document discusses the benefits of Prudential's LTC3SM Guaranteed Purchase Option (GPO) for long-term care insurance. It notes that purchasing a policy with GPO at ages 40 and 50 provides better benefits and lower premiums compared to purchasing at age 62. It provides an example showing how premiums and benefits would increase over time for a policy purchased at age 40 with GPO compared to purchasing at age 61. The document aims to help financial professionals explain to clients how GPO can protect their retirement plans by making long-term care insurance more affordable and comprehensive when purchased earlier.
A New Arrow for The Pension Practitioners Quiver: Pension Risk TransferJay Dinunzio
Webinar Presentation Slides
Gone are the days of group annuity contracts only being able to satisfy the plan termination objectives of a pension plan sponsor. Today, there are a wide variety of useful applications for guaranteed institutional annuity contract structures to provide an alternative to traditional fixed income investments. Are you or your pension clients:
•Struggling with cost and volatility issues surrounding a defined benefit pension plan?
•Considering a liability driven investment strategy that will de-risk the plan investment and allow for stable, predictable funding?
•Limited by fixed income funds that only allow for simple duration matching, and expose the plan to cash flow mismatch risks?
•Unaware of the variety of customized institutional insurance contract structures available?
•Lacking a fiduciary process for evaluating and monitoring the attractiveness of insured pension solutions?
InKnowVision November 2012 Case Study - Basic Family Wealth Goal AchieverInKnowVision
Tom is 83 and Jane is 76. They have two children who are both well employed and live productive and happy lives. Tom was an attorney who headed a large patent firm in Washington DC. Jane served as an expert in international trade for much of her professional life. During the latter part of his career, Tom agreed to do work for a start up company that became very successful. Today, Tom’s share of the company is valued at $3.2M but generates $1.4M-$1.5M per year in taxable distributions. Several years ago, the company spun out one of its divisions and took the new company public. It has seen massive growth; almost no dividends have been distributed, and the company has a value to Tom today of approximately $6.4M. Tom and Jane also have approximately $5.2M in cash, $3.2M in retirement funds, and real estate of $4M for a total net worth of about $22M.
The primary planning goals are to:
Make sure that they have sufficient funds to live on for the rest of their lives
Maximize what they leave to their children and grandchildren
Increase the amount of charitable giving that they are currently doing
Equalize the financial positions of their son and daughter
Make a substantial provision for charity in place of estate tax if possible
Myer Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
The primary planning goals are to:
Make sure that he has sufficient funds to live on for the rest of his life (approx. $600,000/yr., including alimony, after taxes and gifts).
Reduce income taxes.
Maximize the inheritance that he leaves to his children and grandchildren. Consider passing his business interests to his children involved in the industry while providing an equal inheritance of non-business interests to those that are uninterested.
Assure that he has sufficient liquid assets available at his death to eliminate the forced liquidation of his business assets.
Eliminate or reduce estate taxes.
Myer Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
Learn more at www.inknowvision.com
Multi choice index single premium life insurance 4088541883 san jose californ...Connie Dello Buono
connie dello buono ca life lic 0G60621 san jose california 4088541883 motherhealth@gmail.com . On page 7 is a comparison that with aviva index single premium life insurance you can avoid probate, interest earnings are tax-deferred n exclu
Jackson Family Wealth Goal Achiever - Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth. As part of Chris’s retirement package, he has an annual pension payment of approx. $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000. As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The main planning objective is to take advantage of the lifetime gifting exemption ($5M each) while it is still available. This is due in part to the large concentration of conservatively invested assets that are growing inside Chris and Beth’s estate. In addition, they are looking to preserve enough assets in order to provide sufficient cash flow that will ensure a comfortable lifestyle with flexibility during retirement.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth.
As part of Chris’ retirement package, he has an annual pension payment of approximately $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000.
As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The primary planning goals were to:
Make sure that they have sufficient funds to live on for the rest of their lives (approximately $230,000 after taxes and gifts).
Provide for the financial security of the surviving spouse.
Create an inheritance for their children which protects them from any potential future creditors and/or predators.
Provide a charitable gift at death as long as it doesn’t greatly diminish the amount they pass to their heirs.
Eliminate or reduce estate taxes.
Fixed fee divorce, a one stop shop where co-operation, not confrontation is the focus. (1) Calculate your fee using the cost calculator (no hidden surprises); (2) choose a lawyer from the list; (3) arrange a preliminary meeting; (4) pay for the divorce; (5) meet the Dovetail IFA and Dovetail coach; (6) Attend 5 way meetings to agree the way forward; ;(7) The Lawyer will issue divorce proceedings on your behalf; (8) Lawyers prepare a formal financial agreement; (9) Judge pronounces Decree Nisi; (10) Divorce is made Absolute. www.dovetaildivorce.com
A New Arrow for The Pension Practitioners Quiver: Pension Risk TransferJay Dinunzio
Webinar Presentation Slides
Gone are the days of group annuity contracts only being able to satisfy the plan termination objectives of a pension plan sponsor. Today, there are a wide variety of useful applications for guaranteed institutional annuity contract structures to provide an alternative to traditional fixed income investments. Are you or your pension clients:
•Struggling with cost and volatility issues surrounding a defined benefit pension plan?
•Considering a liability driven investment strategy that will de-risk the plan investment and allow for stable, predictable funding?
•Limited by fixed income funds that only allow for simple duration matching, and expose the plan to cash flow mismatch risks?
•Unaware of the variety of customized institutional insurance contract structures available?
•Lacking a fiduciary process for evaluating and monitoring the attractiveness of insured pension solutions?
InKnowVision November 2012 Case Study - Basic Family Wealth Goal AchieverInKnowVision
Tom is 83 and Jane is 76. They have two children who are both well employed and live productive and happy lives. Tom was an attorney who headed a large patent firm in Washington DC. Jane served as an expert in international trade for much of her professional life. During the latter part of his career, Tom agreed to do work for a start up company that became very successful. Today, Tom’s share of the company is valued at $3.2M but generates $1.4M-$1.5M per year in taxable distributions. Several years ago, the company spun out one of its divisions and took the new company public. It has seen massive growth; almost no dividends have been distributed, and the company has a value to Tom today of approximately $6.4M. Tom and Jane also have approximately $5.2M in cash, $3.2M in retirement funds, and real estate of $4M for a total net worth of about $22M.
The primary planning goals are to:
Make sure that they have sufficient funds to live on for the rest of their lives
Maximize what they leave to their children and grandchildren
Increase the amount of charitable giving that they are currently doing
Equalize the financial positions of their son and daughter
Make a substantial provision for charity in place of estate tax if possible
Myer Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
The primary planning goals are to:
Make sure that he has sufficient funds to live on for the rest of his life (approx. $600,000/yr., including alimony, after taxes and gifts).
Reduce income taxes.
Maximize the inheritance that he leaves to his children and grandchildren. Consider passing his business interests to his children involved in the industry while providing an equal inheritance of non-business interests to those that are uninterested.
Assure that he has sufficient liquid assets available at his death to eliminate the forced liquidation of his business assets.
Eliminate or reduce estate taxes.
Myer Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
Learn more at www.inknowvision.com
Multi choice index single premium life insurance 4088541883 san jose californ...Connie Dello Buono
connie dello buono ca life lic 0G60621 san jose california 4088541883 motherhealth@gmail.com . On page 7 is a comparison that with aviva index single premium life insurance you can avoid probate, interest earnings are tax-deferred n exclu
Jackson Family Wealth Goal Achiever - Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth. As part of Chris’s retirement package, he has an annual pension payment of approx. $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000. As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The main planning objective is to take advantage of the lifetime gifting exemption ($5M each) while it is still available. This is due in part to the large concentration of conservatively invested assets that are growing inside Chris and Beth’s estate. In addition, they are looking to preserve enough assets in order to provide sufficient cash flow that will ensure a comfortable lifestyle with flexibility during retirement.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth.
As part of Chris’ retirement package, he has an annual pension payment of approximately $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000.
As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The primary planning goals were to:
Make sure that they have sufficient funds to live on for the rest of their lives (approximately $230,000 after taxes and gifts).
Provide for the financial security of the surviving spouse.
Create an inheritance for their children which protects them from any potential future creditors and/or predators.
Provide a charitable gift at death as long as it doesn’t greatly diminish the amount they pass to their heirs.
Eliminate or reduce estate taxes.
Fixed fee divorce, a one stop shop where co-operation, not confrontation is the focus. (1) Calculate your fee using the cost calculator (no hidden surprises); (2) choose a lawyer from the list; (3) arrange a preliminary meeting; (4) pay for the divorce; (5) meet the Dovetail IFA and Dovetail coach; (6) Attend 5 way meetings to agree the way forward; ;(7) The Lawyer will issue divorce proceedings on your behalf; (8) Lawyers prepare a formal financial agreement; (9) Judge pronounces Decree Nisi; (10) Divorce is made Absolute. www.dovetaildivorce.com
Des dels inicis la Informàtica ha tengut una estreta relació amb les matemàtiques. Per un costat els ordinadors ajudaven als matemàtics a resoldre problemes gràcies entre altres coses a la seva gran capacitat de càlcul i automatització, i per un altre la informàtica necessitava dels matemàtics i els seus càlculs, estructures i procediments o algorismes per a la construcció dels sistemes informàtics.
Employee benefit Insurance policies guide for Indian CompaniesSusheel Agarwal
This Book presents the guidelines to Employee Benefits Insurance, the best practices, all the related questions and their answers! The relevant concepts in employee insurance and examples to help the readers understand and complement the core content!
Please reach out to us directly in case of help in creating a wonderful benefits bouquet for your people.
The most precious asset of any business is its executive team. Part of the struggle that closely held (and public) companies face is their ability to attract and retain key employees. An executive bonus plan may be an effective strategy to hire away from your competition and keep your top people with your firm.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
for beginners, providing thorough training in areas such as SEO, digital communication marketing, and PPC training in Noida. After finishing the program, students receive the certifications recognised by top different universitie, setting a strong foundation for a successful career in digital marketing.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
1. The Power of
Prudential’s LTC3SM
Guaranteed Purchase
Option
James Zuelsdorf
LTC Regional Sales Manager
March 14, 2012
0203375-00002-00
For Financial Professional/Training Use Only – Not for distribution to the general public.
2. Objective
To help you help your
clients protect their
retirement plans while
making long-term care
insurance affordable
when they’re eligible
2
For Financial Professional/Training Use Only – Not for distribution to the general public.
3. Agenda
Understanding the LTC3SM Guaranteed
Purchase Option (GPO)
Learn how purchasing a long-term care
(LTC) insurance policy with GPO at ages 40
and 50 compares to:
• purchasing at age 62
• other inflation protection options
• self-insuring
Summary of GPO benefits
3
For Financial Professional/Training Use Only – Not for distribution to the general public.
4. Discussion Points
Medical advances = Longevity = Extended care
Extended care = $ + Family + a written plan
Do you know anyone who has received extended care?
Where are the dollars coming from?
Where would you want to receive care?
Who would be part of the care?
What’s your written plan for care?
Planning = Discussion Product = Debate
The greatest threat to the most well thought out and executed retirement plan is not dying.
4
For Financial Professional/Training Use Only – Not for distribution to the general public.
5. Obstacles to Extended Care
Planning
Eligibility
Affordability
Complexity
(the more you know the less you need to say)
Availability
The more you know
Avoid? Assume? Transfer?
5
For Financial Professional/Training Use Only – Not for distribution to the general public.
6. Expand Your Markets
Maximize Health and Wealth
For Financial Professional/Training Use Only – Not for distribution to the general public.
7. The Market Opportunity:
40s and 50s
Allows for more robust plans
Today’s Life styles
Personal experiences
Government messages
Firewall for your retirement plan
When is the time to protect your plans?
Protect wealth when you are building wealth
7
For Financial Professional/Training Use Only – Not for distribution to the general public.
8. Today and Tomorrow
Chronological Age vs. Perspective Age
60 is the new ? 40
Nominal Value vs. Real Value
Consider the
$1 today = 20 years from today? .55
reducing future
30 years from today? .41 impact of increasing
the premium
(Assuming a 3% inflation rate)
Today: Nominal Value = $4,000, Real Value = $4,000
In 20 years: Nominal Value = $4,000, Real value = $2,214
In 30 years: Nominal Value = $4,000, Real Value = $1,647
8
For Financial Professional/Training Use Only – Not for distribution to the general public.
9. GPO: The Problems and the
Concerns
Increasing cost?
Future affordability?
Inadequate future coverage?
Missed options?
Circumstances change – stop increases?
Uncertainty?
Cumulative cost?
9
For Financial Professional/Training Use Only – Not for distribution to the general public.
10. Guaranteed Purchase Option (GPO)
Features
Increase offers are made every three years – producers will be paid first-year
commissions on these increases
Daily Benefit will increase by 5% compound for the previous three years on each
policy anniversary date
No limit to the number of times client declines the increase
No evidence of insurability is required
Increases continue even while on claim
Can be upgraded to any automatic inflation option on a one-time, guaranteed-
issue basis at attained age premiums on a policy anniversary
Benefits
Reassurance: client is always guaranteed to acquire additional coverage
Control: client always receives advance notice of each proposed benefit increase
and always has the ability to decline in writing
Continuity: declining an increase offer does not affect future increase offers
10
For Financial Professional/Training Use Only – Not for distribution to the general public.
11. Example:
GPO Purchased at Age 40 – NJ*
Age Annual Monthly 150% HHC 40% CAB for Pool for One
Premium Benefit for for One One
for Both One (monthly) (monthly)
40 $2,255 $6,000 $9,000 $3,600 $438,000
43 $2,632 $6,946 $10,419 $4,168 $507,051
46 $3,076 $8,041 $12,062 $4,825 $586,964
49 $3,616 $9,308 $13,962 $5,585 $679,491
52 $4,318 $10,775 $16,163 $6,465 $786,582
55 $5,258 $12,474 $18,711 $7,484 $910,580
58 $6,508 $14,440 $21,660 $8,666 $1,054,091
61 $8,214 $16,716 $25,074 $10,030 $1,220,246
Compare to: Ages 61/61, Standard I, $500 DBA, 100% HHC ($15,000 monthly), Premium = $9,808
19% more in premium:
*NJ rates – Age 40, Preferred, 30% Spouse Discount , $200 DBA, 6YR BP, 150% HHC, 90-Day EP, Monthly, GPO,
Shared Care Benefit What did you assume?
11
For Financial Professional/Training Use Only – Not for distribution to the general public.
12. Delaying the Purchase vs.
Continuing the GPO – NJ
Delay purchase of LTCi until age 61*
Age Annual Monthly 150% HHC 40% CAB Pool for
Premium Benefit for for One for One One
for Both One (monthly) (monthly)
61 $ 9,808 $15,000 N/A $6,000 $1,095,000
-OR-
Continue GPO from purchase at age 40**
Age Annual Monthly 150% HHC 40% CAB Pool for
Premium Benefit for for One for One One
for Both One (monthly) (monthly)
64 $10,700 $19,351 $29,027 $11,611 $1,412,594
*NJ rates – Age 61, Standard I, 30% Spouse Discount , $500 DBA, 6YR BP, 100% HHC, 90-Day EP, Monthly, GPO, Shared Care Benefit
**NJ rates – Age 40, Preferred, 30% Spouse Discount , $200 DBA, 6YR BP, 150% HHC, 90-Day EP, Monthly, GPO, Shared Care Benefit
12
For Financial Professional/Training Use Only – Not for distribution to the general public.
13. Example:
GPO Purchased at Age 50 – NJ*
Age Annual Monthly 150% HHC 40% CAB for Pool for One
Premium Benefit for for One One
for Both One (monthly) (monthly)
50 $2,614 $6,000 $9,000 $3,600 $438,000
53 $3,094 $6,946 $10,419 $4,168 $507,051
56 $3,716 $8,041 $12,062 $4,825 $586,964
59 $4,550 $9,308 $13,962 $5,585 $679,491
62 $5,738 $10,775 $16,163 $6,465 $786,582
Compare to: Ages 62/62, Standard I, $350 DBA ($10,500 monthly), 150% HHC ($15,750 monthly), Premium = $9,977
73% more in premium: What did you assume?
*NJ rates – Age 50, Preferred, 30% Spouse Discount , $200 DBA, 6YR BP, 150% HHC, 90-Day EP, Monthly, GPO, Shared Care Benefit
13
For Financial Professional/Training Use Only – Not for distribution to the general public.
14. Delaying the Purchase vs.
Continuing the GPO – NJ
Delay purchase of LTCi until age 62*
Age Annual Monthly 150% HHC 40% CAB Pool for
Premium Benefit for for One for One One
for Both One (monthly) (monthly)
62 $ 9,977 $10,500 $15,750 $6,300 $766,500
-OR-
Continue GPO from purchase at age 50**
Age Annual Monthly 150% HHC 40% CAB Pool for
Premium Benefit for for One for One One
for Both One (monthly) (monthly)
68 $10,214 $14,440 $21,660 $8,664 $1,054,091
This
*NJ rates – Age 62, Standard, 30% Spouse Discount , $350 DBA, 6YR BP, 150% HHC, 90-Day EP, Monthly, GPO, Shared Care Benefit
**NJ rates – Age 50, Preferred, 30% Spouse Discount , $200 DBA, 6YR BP, 150% HHC, 90-Day EP, Monthly, GPO, Shared Care Benefit
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For Financial Professional/Training Use Only – Not for distribution to the general public.
15. Plan Designs – Age 40/40
Example: Annual Premium Comparison*
Plan A: GPO $2,225
Plan B: 5% Compound 2X Max $3,604
Plan C: 5% Compound No Max $8,008
*New Jersey, Age 40/40, 6 Yr. BP, 90-Day EP, $200 DBA, 150% HHC, Preferred, 2-
Spouse Discount, Monthly, Shared Care Benefit – In year 26, GPO premiums paid
will exceed 5% compound premiums paid
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For Financial Professional/Training Use Only – Not for distribution to the general public.
16. Plan Designs – Age 50/50
Example: Annual Premium Comparison*
Plan A: GPO $2,614
Plan B: 5% Compound 2X Max $4,847
Plan C: 5% Compound No Max $8,976
*New Jersey, Age 50/50, 6 Yr. BP, 90-Day EP, $200 DBA, 150% HHC, Preferred, 2-
Spouse Discount, Monthly, Shared Care Benefit – In year 22, GPO premiums paid
will exceed 5% compound premiums paid
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For Financial Professional/Training Use Only – Not for distribution to the general public.
17. Insure or Self-Insure?
Age Sample LTCi LTC Self- Pool of money Daily cost # days Number of
premium for Insurance created by LTCi for nursing covered from days covered
one insured* Fund policy facility LTC “self- from 6 Yr.
contribution compound @ care insurance” LTCi policy
& compound 5% fund
@ 5% net
40 $1,127 $935 $438,000 $200 5 2,190
45 $1,316 $6,855 $507,051 $255 27 1,986
50 $1,808 $16,257 $679,491 $326 50 2,086
55 $2,629 $30,683 $910,580 $416 74 2,190
60 $3,254 $52,848 $1,054,91 $531 100 1,986
* NJ, 90-Day EP, $200 DBA, 150% HHC, GPO, 6 Yr. BP, 2-Spouse Discount, Preferred, Monthly, Shared Care Benefit
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For Financial Professional/Training Use Only – Not for distribution to the general public.
18. GPO vs. Compound Inflation
Age 40
GPO – NJ, started @$200 DBA 5% Compound – NJ, started@$100 DBA
Year GPO 150% POM Premium Year 5% No 150% POM Premium
for 2 for 2
MMB HHC Max MMB HHC
1 $6,000 $9,000 $438,000 $2,254 1 $3,000 $4,500 $219,000 $4,004
15 $10,775 $16,163 $786,582 $4,318 15 $5,940 $8,910 $433,598 $4,004
20 $14,440 $21,660 $1,054,091 $6,508 20 $7,581 $11,372 $553,413 $4,004
25 $14,440 $21,660 $1,054,091 $6,508 25 $9,675 $14,513 $706,297 $4,004
30 $14,440 $21,660 $1,054,091 $6,508 30 $12,348 $18,522 $901,426 $4,004
35 $14,440 $21,660 $1,054,091 $6,508 35 $15,760 $23,640 $1,150,473 $4,004
GPO: starts at twice Compound – Premium increases every 3 years, assume stop exercising option in future
5% Compound No Max: Coverage increases each year – Premium remains constant
Assumptions: Age 40, H/W Preferred, 6 Yr. BP, 90-Day EP, 150%HHC, 2-Spouse Discount, Monthly, Shared Care Benefit
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For Financial Professional/Training Use Only – Not for distribution to the general public.
19. GPO vs. Compound Inflation
Age 50
GPO – NJ, started @$200 DBA 5% Compound – NJ, started@$100 DBA
Year GPO 150% POM Premium Year 5% No 150% POM Premium
for 2 for 2
MMB HHC Max MMB HHC
1 $6,000 $9,000 $438,000 $2,514 1 $3,000 $4,500 $219,000 $4,488
15 $10,775 $16,163 $786,582 $5,738 15 $5,940 $8,910 $433,598 $4,488
20 $14,440 $21,660 $1,054,091 $10,214 20 $7,581 $11,372 $553,413 $4,488
25 $14,440 $21,660 $1,054,091 $10,214 25 $9,675 $14,513 $706,297 $4,488
30 $14,440 $21,660 $1,054,091 $10,214 30 $12,348 $18,522 $901,426 $4,488
GPO: starts at twice Compound – Premium increases every 3 years, assume stop exercising option in future
5% Compound No Max: Coverage increases each year – Premium remains constant
Assumptions: Age 50, H/W Preferred, 6 Yr. BP, 90-Day EP, 150%HHC, 2-Spouse Discount, Monthly, Shared Care Benefit
19
For Financial Professional/Training Use Only – Not for distribution to the general public.
20. GPO: The Problems, the Concerns,
and Now… the Solutions
Increasing cost? Human Capital, Nominal Value vs. Real Value
Future affordability? Human capital, stop exercising options at 61 or
62, and you have a very significant benefit for today and for tomorrow
Inadequate future coverage? The 150% HHC handles that now and
later – Home Care is the focus now and later
Missed options? Negative elections (no action needed)
Circumstances change? Change inflation option without evidence of
insurability, skip options = Flexibility
Uncertainty? GPO provides certainty
Cumulative cost? See next slide and get ready to be surprised
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For Financial Professional/Training Use Only – Not for distribution to the general public.
21. Cumulative Cost: The Real Story
GPO vs. 5% Compound No Max
NJ age 40/40 – can exercise options through age 64, (25 years) and
cumulative cost is less
NJ age 50/50 – can exercise options through age 70, (21 years) and
cumulative cost is less
Assumptions: $200 DBA, 150% HHC, 6 Yr. BP, 90-Day EP, Monthly, 2-Spouse Discount,
Preferred, Shared Care Benefit
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For Financial Professional/Training Use Only – Not for distribution to the general public.
22. Another GPO Thought/Opportunity
Shared Care can now be issued with GPO!
In age 60 range: Plan Design thought
Shared Care + GPO = Plan A
-or-
Shared Care + Simple or Compound Inflation = Plan B
More thoughts:
Buy more now for less options later
The sequential sale
Plan A with GPO eliminates the affordable objection!
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For Financial Professional/Training Use Only – Not for distribution to the general public.
23. Consequences of Transferring the
Risk vs. Assuming the Risk
Early years – client doesn’t purchase because of cost
(assumption and hope: they did not require care in their 40s
or 50s)
Later years
• Client doesn’t purchase because of cost
• Potential for one of two or both to be rated or uninsurable
Impact on Retirement plan, Estate Plan, Investment plan,
Tax plan, “Life Plan:” a possible lifetime of planning in chaos
Emotional and physical impact on family: immeasurable
An affordable plan established through the planning years and maintained through the retirement
years would have avoided the inevitable consequences of needing care and not having a funded plan.
Small financial investment vs. financial burden – which one could your client and their family live with?
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For Financial Professional/Training Use Only – Not for distribution to the general public.
24. The Power of GPO
Eligibility, Affordability, Availability
Affordable premiums during working years
Getting the best classification clients will ever get and keeping the
best classification they will ever get
GPO offers continue on claim
Premium is waived while on claim
Prior offer declines do not affect future offers
One-time option to change to another inflation option
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For Financial Professional/Training Use Only – Not for distribution to the general public.
25. The Power of GPO
Eligibility, Affordability, Availability
GPO offers are calculated on a 5% compound basis
Meaningful benefit for a manageable premium from the beginning
Human Capital during working years allows for exercising options
Can be related to disability – dependence on ADL assistance and
cognitive supervision could extend into retirement years
Long-term care is a pillar of any retirement plan
Affordable premiums in retirement
25
For Financial Professional/Training Use Only – Not for distribution to the general public.
26. Meaningful Plan + Manageable
Premium
CAB
+
150%HHC
+
GPO
The Unbeatable Combination
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For Financial Professional/Training Use Only – Not for distribution to the general public.
27. LTC3SM long-term care insurance policy is issued by The Prudential Insurance Company of America, 751 Broad Street,
Newark, NJ 07102 (800-732-0416). This coverage contains benefits, exclusions, limitations, eligibility requirements
and specific terms and provisions under which the insurance coverage may be continued in force or discontinued.
Prudential is authorized to conduct business in all U.S. states and the District of Columbia. Product availability varies
by state. Coverage is issued under policy number GRP 113096; however, policy numbers may vary by state.
For Financial Professional/Training Use Only – Not for distribution to the general public.