Asset Care ROP Color Commentary

Last week, our first Coffee Break episode of 2022 was released.  In it, I was joined by Jen Wagoner, Elaine Marvin, and Niki Johnson.  We talked about the Asset Care Return of Premium product solution that was introduced with the 2017 Asset Care reprice. 

If you have not seen the January Coffee Break, you can check it out here

If you miss it, you can always go to our website LTCcoffeebreak.com to catch it or any past episode on demand.

And remember, a new episode will premiere the second Tuesday of every month at 10 am (eastern). 

Let me share a little “color commentary” about return of premium provisions specific to asset-based long term care products on a life insurance chassis.

Return of Premium is offered with single premium funding solutions.  I have not seen any return of premium solutions for recurring premium asset-based LTC products.  If you know of any, please let me know.

Way back when I started wholesaling asset based LTC solutions with another carrier (the only other carrier who has 30+ years of experience), the value proposition was “live, die or quit” where the quit option was a full return of premium.  This was available on day 1 of the policy being placed in force.

When we fast forward to today, the Return of Premium options offered by asset-based long term care policies vary by carrier, product, and product series. 

One approach that has become popular is to offer a “vesting schedule” where after a period of time (5 years for example), a full return of premium is available.  To me, this is nothing more than a 5 year surrender charge being applied to the policy. 

Less than 2 percent of all asset-based long term care policies issued industry-wide have had their return of premium provision exercised.  What’s that tell you about the value of both long term care planning and the product strategy that has been deployed?

With Asset Care, the Return of Premium product solution is constrained to the 2% acceleration of the base policy (death benefit) plus 50 month continuation of benefits rider plan design.  That being said, both individual and joint policies can be issued.

Again, if you haven’t checked out this month’s Coffee Break, please do so.  You will certainly learn more about the Asset Care Return of Premium product.

To learn more about what we can do for you, contact me via email at kevin.fisher@oneamerica.com or at (678) 512-9627.

For illustrations and product assistance, please contact my internal Justin Fox at (844) 658-3725 or via email at justinfox.isp@oneamerica.com As always, thanks for taking a little bit of time for me.

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