Asset Care ROP in Cali

Last month on Coffee Break, we discussed our Asset Care Return of Premium product.  Today, we will expand on that with a focus on California.

Setting the stage, when Asset Care Return of Premium came about, it was part of the Asset Care repriced from a few years ago.  This new version of Asset Care is available in all state except New York (where we do not do business) and California (where we are awaiting approval and offering the original series of product in the interim). 

Jen Wagoner discussed how return of premium is addressed in California using the original Asset Care product.  This same concept can be applied to the current product in every state that it is offered.

When would I use this approach?  Simply, when the client is more focused on a return of their money (liquidity) AND is skeptical that they will ever utilize the policy. There are plenty of these people around.

In the scenario, they will forego the leverage provided by the continuation of benefits rider and secure a base-only Asset Care policy. 

In the base-only scenario, there are options for benefit acceleration unlike the Asset Care ROP product. 

Here is an comparison of what a California base-only Asset Care would look like for a male age 60 dropping in $150,000 of single premium with no inflation on the benefits.  LTC benefits reflect 2% acceleration (50 month benefit duration)

YearCSVDeath BenefitMo. LTC
1150,000307,3956,148
5150,000307,3956,148
10173,734307,3956,148

REMEMBER – this is the California product. 

A similar solution can be produced in other states with the current Asset Care product, however the real value in the policy is the leverage provided by the continuation of benefits rider.

For more details about this approach, please contact me via email at kevin.fisher@oneamerica.com or at (678) 512-9627.  My internal, Justin Fox, can also assist.  Contact him at (844) 658-3725 or via email at justinfox.isp@oneamerica.com

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

Or, you can go to LTCcoffeebreak.com where you can catch any past episode on demand. 

Remember, a new episode premiers the second Tuesday of each month.

And, as always, thanks for taking a little bit of time for me.

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