Create Comfort for Your Clients and Their Loved Ones

Josh VerHoeve

By: Josh VerHoeve, VP - Annuity & Life Insurance at Asset Marketing Systems


Originally Written: January 28th, 2019
Updated: May 23rd, 2024

May is Small Business Month, and we believe that we have the perfect solution to help your clients and grow your business. This subject matter is even more true for small business owners as they often have two “families” to take care of. Unfortunately, not all clients are the perfect life insurance or Long-Term Care prospects because of the underwriting process. Life and LTC seem to be products that are never purchased when people can get them, but everyone seems to want them once they cannot get them. This is especially true with Long-Term Care, where insurers are only approving very healthy clients. We cannot simply insure everyone with health impairments, or can we?

The most devasting event for your client in retirement is an extended care event. An extended care event where LTC is needed can decimate any well-structured financial and retirement income plan. Imagine at some random point in the future your client needs an additional $100,000+ per year when they become ill and need care? Does your client have a plan for this instance? What if we took that out a bit further and they needed that $100,000/year for the next three or four years? Does their financial plan account for this? Too often clients overlook LTC insurance because they do not play the scenario out in their head. Generally, the person needing care will in fact get the care one way or another. However, who will be providing the care, and how many relationships within your family are jeopardized because of it? LTC is something you buy because you love your family. You love your spouse and your children. Here at Asset, I hear real life stories every single week about how a Long-Term Care event for a single person negatively affected the lives of their children and/or spouse. By not addressing this risk, you will allow the people who you promised to take care of to put their lives on hold to care for you.

We also tend to think of LTC being something that happens when we are 80 years old, however chronic illnesses and LTC happens at much younger ages. These events will not only strain your family significantly but also put extreme stress on your business. LSW/National Life Group stated in March, of 2022 that the average age they received claims for living benefit acceleration for is 44.5 years old. This was reference to their Flex Life product.

I realize Long Term Care conversations can be painful for not only your client but for you. If I have your attention still, GREAT, because for the first time in my career, there is an answer that is easier than you might think. You do not need to be concerned with your client’s health to reduce or eliminate their LTC risk. You must look at an amazing option that allows your clients to enjoy all the benefits that a top rated Fixed Indexed Annuity would provide but also has a guaranteed Long-Term Care benefit – regardless of your client’s health. The EquiTrust Bridge LTC product. A traditional growth and protection FIA with a current S&P Cap at 10% and fixed account at 5.00%. This product is offered through EquiTrust, who arguably has the best renewal rates in the business the last 20 years.

This product has a true 7702B LTC rider. This is a tax qualified benefit – meaning it is TAX FREE for Long-Long Term care. Because of the tax qualification it would also qualify under the anticipated laws being discussed in most states to pass a tax for state funded Long Term Care insurance (Washington state has already implemented this). A client can expect to leverage their initial deposit by more than 300% immediately at preferred rates. Because the product is indexed there is an automatic built-in inflation hedge. As the index grows the LTC benefit will also grow. EquiTrust has also offered a wellness program to help clients gain even more credits toward their LTC benefit base by enrolling in a NeverStop which is a free benefit when purchasing this product.

The reason this product needs to be discussed by everyone who has it available to them, is because it accomplishes two goals very well which no other product has ever been capable of doing since FIAs were invented. First, it can be used as a growth/accumulation and safe alternative to any riskier investment since it offers a high S&P 500 cap rate and 5% fixed account. The product also offers 10% free withdrawals/year beginning in year two. The EquiTrust Bridge sits on a 10-year surrender chassis. We then add their LTC benefit to the conversation and the product becomes nothing short of incredible. The Bridge offers three rate classes: Secure, Standard and Preferred. If your client does not want to answer any medical questions or do the video interview (at the time of application) that is OK and they can immediately qualify for a “Secure” rate class. The main difference between Secure, Standard and Preferred is the immediate LTC leverage one would receive.

However, the secure rate class on average has an internal cost of only 40 bps per year. The preferred rate class has an average internal cost of about 100 bps per year. To get preferred you do the application via EquiTrust’s website. After entering in the basic information, you and your client will be prompted to a zoom-like video interview. This interview will take as few as 15 minutes but usually around 30 minutes. Within 24 hours you will know what rate class your client has received. Regardless of the result they will be approved and regardless of the result the product is still one of the best options for them. No longer will you spend several days on an application, then 30-60 days to go through underwriting while crossing your fingers for an approval.

Talk about an act of love! You have the ability to not only protect money from market risk, but at the same time protect the people you promised to protect by making sure their lives are not put on hold to care for you.

You can access almost all the information you need via a micro-site without having to log in here: https://agents.equitrust.com/bridge/

If you plan on writing the product I would encourage you to get contracted. Reach out to Clem or Virginia in contracting at 888-303-8755. To write the application you need to be set up first, take product training and then be given access to their website. So, if you are not already set up with EquiTrust, you need to be.

You may also contact our team for a more detailed illustration for a specific client. Ask for Ernesto or Josh at 888-303-8755.

Also don’t forget to join the new Product & Sales Positioning Facebook Page Here: https://www.facebook.com/groups/amsppss

Tip: Some people are having issues requesting acceptance into the group. If you have that issue, please simply send Joshua VerHoeve a friend request and he can admit you to the group right a

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