Welcome to the 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.

Long-Term Care In The News …….

MetLife LTC Update

Effective immediately, Long-Term Care Insurance producers may write LTCI cases and split the commissions (both first year and renewal) with agents across the MetLife Enterprise. You can now approach MetLife Career Agents and New England Financial offices, as a Long-Term Care Specialist and offer to work with their clients and in turn be able to split commissions with them. The writing agent will continue to be the agent who signs the application in the Signature of Licensed & Appointed Agent field listed on the Agent Report page in the application and should be the first agent listed.

For all LTC Insurance policies issued after April 1, 2004, the “effective date” rule is changing when no deposit is submitted with the application. When an application is submitted with no deposit an “accept decision” is made and the policy will become effective 28 days after the “accept decision”. This change is being made to allow time for the agent to deliver the policy to the client and to prevent the client from having to pay back premium. If any deposit is submitted, there is conditional coverage. This means the applicant has coverage on the date the application is signed provided they are insurable based on MetLife’s underwriting standards. Met does not allow changes to coverage effective dates. Do not collect a check with the application if your client does not want coverage from the date they sign the application. We encourage you to collect a check with your applications as this tends to make delivery of your policy much easier.

Partnership versions of LTCI VIP Premium Rate Books are available for Connecticut, Indiana and NY State Partnerships. Call us today for your copy.

JOHN HANCOCK CORRECTIONS !

It has been brought to our attention from one of our avid readers, that there was an error in last weeks “In the News”. John Hancock DOES offer a Preferred Health Discount for applicants who apply for unlimited benefits under the new Custom Care II product.

Also, from the JH Pipeline, The New York Custom Care II applications were printed with an incorrect reference in Part 4 of the application. Specifically, the applications say “You do not have to answer the questions in Part 7 if you are not applying for a discount”, when they should say “You don not have to answer the questions 4a-4d if you are not applying for a discount”. This typographical error is leading some producers to believe that the medical questions of Part 7 need not be completed if one is not applying for a discount. This is not the case.

GE Update

The Limited Pay option provides your client with the choice of paying for long-term care premiums over a limited period of time, rather than for the life of the policy. The choices include paying premiums over a 10-year period, “10-Pay,” or until the policyholder reaches age 65, “Pay-to-65,” both resulting in a paid-in-full policy. It is available with Privileged Choice and Classic Select in: AL, AK, AZ, CO, DC, DE, FL, GA, HI, ID, IL, IO, KS, KY, LA, ME, MI, MN, MS, MN, NE, NH, NJ, NM, NV, NC, ND, OH, OK, RI, SC, SD, UT, VT, VA, WA, WV, WI, WY. The Limited Pay option is available with the GE Long Term Care Choice product in IN and MA. For more details about the Limited Pay option, marketing or sales materials please give us a call.

Medicaid Update

According to the Center for Long-Term Care Financing, Wisconsin has passed new regulations making it next to impossible to use so-called “Medicaid Friendly Annuities.” The rules are complex, but can be summarized as follows: Any annuity that can be cashed out is an available asset that must be spent on the recipient’s care. Wisconsin will no longer take the applicant’s word that the annuity is irrevocable and cannot be liquidated. The individual must present proof from at least two companies that deal with annuities that the instrument cannot be purchased, even at discount. If this cannot be proven, the annuity is considered an available asset and must be spent on care. Requirement of such proof places an enormous burden on the applicant. It is highly unlikely that any will succeed in proving their case.