Welcome to the thirty-seventh 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.

JOHN HANCOCK ANNOUNCES CHANGE TO THE CUSTOM CARE II APPLICATIONS

John Hancock has announced a new LTC application that has been designed with both the consumer and producer in mind!  It is approved in 11 states, New York being one of them.  You must use this new application beginning May 1, 2005.  In addition, you are now required to submit a copy of the final sales illustration used in your presentation when submitting a new case.  John Hancock will still require a minimum of one month’s premium with application submission.  We are attaching a copy of the “new” New York application for your immediate use.  If you require an application for another state, you can email us or call us and we will email it directly to you.

SPOTLIGHT ON NY LIFE’S CPI-U RIDER

Most long-term care insurance inflation riders require that your policy benefits be increased by a fixed percentage every year (i.e. 5% compounded or 5% simple).  Inflation costs can vary in amount from one year to the next.  New York Life has developed another option:  the Consumer Price Index Benefit Increase Option Rider (CPI-U).  The CPI-U helps ensure that your client’s policy benefits keep pace with fluctuations in the cost of goods and services as determined by the Urban Consumer Price Index.   As with any insurance product, the goal is to have the right amount of coverage in place at the time you need it most.  New York Life’s CPI-U Rider was designed to do just that. 

CPI-U Features:

·         The price of these benefit increases is based on issue age!

·         All policy limits are included in the increase offer.  When you client accepts the increase, all of the benefits will increase by the CPI-U percentage.

·         Your client decides whether to accept the yearly increase offers and they can choose to accept or decline these yearly increase offers as many times as they want!

·         No future underwriting is required for benefit increase!  Once the policy is in place the CPI-U can be accepted at any time, even while on claim!!!

If you are looking for an alternative to the very expensive 5% Compound Inflation riders, we encourage you to learn more about this very unique feature to New York Life’s competitive LTC Select Premier contract. 

PREPARE FOR THE UNTHINKABLE:  LONG-TERM CARE

In case you missed it, there was a great article by Terry Savage on MSN’s website recently.  “More than 12 million Americans need long-term care, and almost 5 million of those are working-age adults”, Ms Savage writes.  She describes how to prepare for the worst.  Your clients insure their home against fire and their car against an accident – and never complain if that money is “wasted.”  Why not insure against one of the most expensive realities of life – long term care?  As our lives lengthen and new treatments are developed, your clients or your client’s parents are more likely to require some type of care.  With a little planning, your clients can buy long-term care insurance.  Your younger, affluent clients can even purchase LTC for their healthy parents.  Further, she goes on to say that coverage can be provided as an employee benefit.  “Long-term care insurance is a product that catches the attention of seniors, but the ideal time to buy it is actually when you are in your early 40’s and 50’s and in good health.”  She further discusses the nuts and bolts of what people should think about before purchasing LTC and some of the options with regard to policies.  This is a GREAT article to share with your clients, for a complete copy go to http://moneycentral.msn.com/content/CollegeandFamily/Caringforparents/P37497.asp.

ALLIANZ  WILL LAUNCH NY’S ONLY EIA ON MAY 16TH

Allianz’s new 7 year Equity Indexed Annuity (EIA) will be launching in NY on May 16^th with a monthly point-to-point with annual reset design. Allianz’s new product will carry a 2.95% guarantee (MGIIR) for the equity indexed portion and a 1% guarantee (MGIIR) for the Fixed account which will launch with a 3% interest rate but can reset annually. The current monthly cap will be 2.2% and will be 100% participating with either the S & P 500 or the Nasdaq-100.  Clients will be able to allocate among three distinct buckets --The fixed account, The S & P-500 or The Nasdaq-100. Clients can change their allotment annually within 21 days of the contract anniversary. Allocations to the different buckets must be in 25% increments. Minimum initial investments are $25,000 for non- qualified or qualified and free withdrawals of up to 10% annually are allowed after the first 12 months up to 100% cumulative lifetime. The surrender charge is 10, 9, 8, 7, 6, 5, 4, 0. Each contract year the surrender charge will decrease by .0833% each month before the eighth contract year. The surrender charge on the last day of contract year seven will be 3.0833%. Day one of contract year eight, it will be 0%. Contract loans will be available for up to 50% of the cash value (max- $50,000). The loan interest rate is 7.4% in advance and is not available with some IRA, SEP and other qualified plans. Choose from two commission options, Option A or Option B. Call us to find out more about the commissions and further product information on NY’s only EIA !!.

MASS MUTUAL SIGNATURECARE 400 APPROVED IN NJ

The new Mass Mutual SignatureCare 400 series is approved in New Jersey.  The last date for SignatureCare 300 applications to be received in the Home Office is May 20, 2005.  We encourage you to contact your NJ clients NOW!!!  The rates on the 400 series are dramatically higher in most situations.  Other states with a May 20^th cut off are Indiana and Pennsylvania.

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