NEW AB-LTC Policy Hits the Market…the New #1?

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NEW 1, 2, 3-Year Pt-to-Pt Rate of Return Statistics
Download my 22-slide PowerPoint Presentation

Last week I offered the opportunity to DOWNLOAD my PowerPoint with the returns using a 1, 2, or 3-year Pt-to-Pt crediting method in FIAs. I have numbers for the S&P 500 and the Nasdaq, Mosaic, and Zebra VCIs. To download this EYE-OPENING PowerPoint, click on the following link:

What products have been “hot” in the AB-LTC marketplace lately?

One America is a hot product because it’s the only one with an “unlimited” benefit.
Nationwide has had some of the higher benefits for a non-unlimited benefit product.
Lincoln’s MoneyGuard is known as the Godfather of products that many use by default.

Some products come and go from the market as companies reprice them. The product in this newsletter was taken off the market, repriced, and re-introduced. We recently reviewed the new version of the product and it’s really a strong product.

Example—let’s get to an example that will be an eye-opener for most readers. Let’s take a 60-year-old male paying a $100k lump sum premium and see how the numbers shake out! The yellow highlights are the best terms of the four products. This is w/out an inflation rider. If I added the rider, the numbers would look even more in favor of the new product.

What sticks out from this example

-The MoneyGuard product isn’t very good.
-Nationwide is no longer the #1 product for a 6-year benefit.
-One America’s non-lifetime benefit product is good but lags behind the new product.
-The “new” product is not only better, it’s much better in every category but one.

Unlimited benefits

The example has a finite benefit period of 6-6.25 years. Only one product, One America, has an “unlimited” benefit. This unlimited benefit is pretty darn cool and is appealing if you think about someone who gets Dementia and who may live 10-20 years in a home.

The One America unlimited MONTHLY lifetime benefit = $6,261. This is $1,291 a month, $21,888 a year, or $131,328 LOWER over a six-year benefit period than the NEW AB-LTC product. But it does keep paying if the client lives longer than 6 years and is still in the nursing home.

Reimbursement vs. Indemnity

I’m a huge One America fan, but it’s the only one in the example that is a reimbursement product. That means clients have to provide bills paid to the insurance company for reimbursement of expenses. With indemnity, once you go on claim, the company simply pays the monthly prescribed benefit without proof of bills paid. Clients, of course, prefer indemnity over reimbursement.

How long is the average nursing home stay? Less than 4 years!

Do clients need the lifetime benefit or are they better with a 6-year benefit?

Dementia statistics:

-5.0%: Percentage of Americans ages 65 to 74 who have Alzheimer’s dementia.
-13.1%: Percentage of Americans ages 75 to 84 who have Alzheimer’s dementia.
-33.0%: Percentage of Americans over age 85 who have Alzheimer’s dementia.

If dementia runs in the family, as well as a history of living a long life, I’d definitely consider using the One America unlimited benefit product.

If you like to play the odds, then the chances of a client needing care for more than four years are very low, and the chances of needing care for six years are even lower. As such, many clients, I think, would opt for the NEW product and the much higher benefits.


There is no perfect product out there. However, if you have at your disposal both the One America product AND this new product, you have all you need to provide the “best” options available to clients in the marketplace today.