Long Term Care In The News...... February 11, 2005

Volume 33

Welcome to the thirty-third edition of Long-Term Care in the News. We, at Custom Care Solution, LLC, want you to be on the cutting edge of changes and updates within the Long-Term Care industry. We will accomplish this through these email bulletins distributed each week to our brokers, agents and their staffs.

NJ LTC AWARENESS CAMPAIGN – THIS IS HUGE!!!!!!

Do you have clients that live or have businesses in NJ????? Now is the time to approach them regarding Long-Term Care and the Governor is opening the door for you!! Acting Governor Richard Codey, has sent a letter to over 820,000 residents between the ages of 50 and 70 telling them about the “Own Your Future” campaign. The letter from the Governor introduces a very important issue – planning for your future long-term care needs. In addition to the letter, an extensive public relations and media event will take place throughout the month of February and into March. The campaign focuses on raising awareness among the media on key long-term care planning issues and placing articles in local and community news publications. A 30 second Public Service Announcement will be targeted to the state’s nine broadcast and cable stations. The TV exposure will be supplemented by 30 second radio spots during popular times for the target market. The media campaign will also include TV and radio talk show appearances by local spokespeople appropriate to address the long-term care planning issue. Awareness activities will also focus on reaching private businesses in New Jersey, with an article planned for New Jersey Business, a leading publication for the New Jersey business community. Now is the time to get in touch with your NJ clients both individuals and employers. Make sure that they know you can work with them to achieve their long-term care planning goals.

PRUDENTIAL ANNOUNCES PLANS FOR LTC3

On March 21, Prudential will launch its third generation long-term care insurance product, LTC3. LTC3 offers a number of new benefits and riders that provide consumers with a wide range of choices to design a policy to meet their long-term care needs. All LTC3 policies will include international coverage, a simple calendar day elimination period, restoration of benefits and an alternate plan of care. Every LTC3 policy also has a new Cash Alternative feature that allows policyholders to elect a monthly cash payment in lieu of reimbursement for services and does not require proof of actual services for benefits to be paid. This product will launch in the following states: AL, DC, ID, KY, LA, ME, MI, MN, MS, MT, ND, NE, NH, NM, NV, OH, OK, OR, SD, UT, WY, Guam and Virgin Islands. Keep your eyes on upcoming LTC in the News as more states are launched.

METLIFE ANNOUNCES MORE STATE APPROVALS FOR VIP2

We are pleased to inform you that the following states have approved MetLife’s new VIP2 Policy Series policy form and key marketing materials. The VIP2 Policy Series will be launched in these states on March 14, 2005: Alaska, Colorado, Connecticut, Connecticut Partnership, Maine, Nevada, New Hampshire, Oregon, South Dakota and Tennessee. The following states were already launched on January 28, 2005: Alabama, District of Columbia, Iowa, Michigan, Mississippi, Nebraska, North Dakota, Ohio, South Carolina and Wyoming. Please contact us to learn more about the VIP2 product changes, including new Multi-Life rules.

DON’T LET YOUR CLIENTS WAIT TOO LONG TO APPLY FOR LTC

Important new research from LTCi Sales Strategies magazine reveals, your clients may wait too long to apply for long-term care insurance protection. Two important facts: the longer they wait the more they will pay and if they wait too long it is more likely that they will be declined. On average only 7.2% of applicants under age 50 are denied coverage for LTC. That statistic changes dramatically when applicants wait until 70 and over to apply. 42.9% of applicants between the ages of 70 and 79 are declined for long-term care insurance. If you have clients that have thought about long-term care protection, it is smart to get them to act now, before a change in their health increases their cost…or prevents them from qualifying entirely. Also, with so many carriers introducing new products, the pricing will never be lower than it is today.

WHY SHOULD BUSINESS OWNERS BUY LTCI?

Your business owner clients should think about long-term care insurance because the costs may be 100% tax-deductible and non-taxable to the employee. They can utilize corporate dollars to protect personal assets. They can exclusively protect themselves and selected employees – even their spouses. Yes, your client can be selective; it is possible to create a bona fide class of select employees that are eligible for corporate-paid, discounted long-term care insurance. A combination of 10 employees and spouses qualifies a group for simplified underwriting which only has 5 medical questions. Help your client’s use 100% deductible corporate dollars to protect their retirement assets and lifestyle. Please contact us to learn more about the 2005 Tax Incentives.

We at CCS are continually looking for ways to keep our brokers up to date. If you’d like to send comments or suggestions to make this newsletter better, please feel free to contact us.

Debra A. Walker, LTCP, CLTC Karin L. Wertheim, LTCP, CLTC

C U S T O M   C A R E   S O L U T I O N ,   L L C

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New York, New York 10119
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