Answers to Long Term Care Insurance Q & A

Hi John, thanks for the questions.  I hear what you described from clients all over the US so that must be ABC Mutual Long Term Care Insurance pitch.  They say they can sell other companies but always push the customer towards ABC MutualLong Term Care Insurance.  The reason is they do have the ability to sell other carriers, but 15 years ago I met with a ABC Mutual Long Term Care Insurance recruiter.  I recall that back then I would have been able to sell other companies too, but the commission was much lower and to get their bonuses you had to produce a certain amount of ABC Mutual Long Term Care Insurance business in order to stay around.  In short, they could sell other companies but few did because they would cut your commissions.

As far as the financial ratings and profitability of ABC Mutual  … they are good, but the shell company which is what you are buying, ABC Mutual Long Term Care Insurance is losing money.  See attached and look at the last line.  They have chosen to firewall their Long Term Care Insurance biz into a separate company and their Long Term Care Insurance company is already losing money.  Admittedly this is conjecture on my part, but it seems like they know they have a lot of toxic business on their books and want to protect the parent company if things continue to go south for their Long Term Care Insurance business.  Whatever the case may be, insurance companies don’t do things like this for nothing.

The second attachment is the dividend payout percentage companywide over the past 15 years and as you can see XYZ Mutual s paying out the highest percentage amongst its peers.  The past few years XYZ Mutual has been paying out about 25% more in dividends than ABC Mutual .  I like looking since 2008 as that was when we had a financial crisis and seeing how a company performs during crisis is important in my opinion.  Here’s more info on dividends: http://www.benefits.va.gov/insurance/dividends_options.asp

Points:

1) All Long Term Care Insurance policies are tax qualified meaning that if you are in the right tax situation you may be able to deduct the LTC premiums off your adjusted gross.  I’d talk to your tax pro to the options.

2) Again, see last line ofLong Term Care Insurance shell company and you’ll see they are already losing money.  To me this is odd because they have only been writing Long Term Care Insurance business since 1999 so they should not be having so many claims as their book of business is relatively young vs. say Genworth Long Term Care Insurance which goes back to 1974.  The tea leaves tell me their actuaries got it wrong back then and they approved people with one foot in the grave.  Again, speculation on my part but I’d love to hear the reason why they firewalled their LTC biz and are already losing money.

3) XYZ Mutual is the same, you are a owner and they HAVE paid dividends.  The dividends start in the tenth year with XYZ Mutual Long Term Care Insurance product.

4) XYZ Mutual like ABC Mutual  has never raised rates.

5) XYZ Mutual inflation rider is NOT CPI.  It’s 3% annual compound.

6) XYZ Mutual Long Term Care Insurance elimination period is service.  In my 17 years of helping clients with claims this has been a non-event because the claims usually start from an accident like broken hip or illness where the people need care everyday anyway, not sporadically.  Sporadic care tends to results months after the broken hip as the person recovers.  You can add the rider where just one day of care a week counts toward seven days off the deductible for about 5% more.  I’d say save your money but either way XYZ Mutual  will still be 33% to 50% less than ABC Mutual.

7) Premiums are waived with XYZ Mutual once they begin paying you.  ABC Mutual  does wave them from day one I guess because they are charging you 33-50% more all those years leading up to you using it.

8) With XYZ Mutual I think it’s just 60 days times  your daily benefit for medical equipment.

9) I’m not aware of any upgrade with XYZ Mutual.  These polices have not had any major improvements since 1998 when I got in the business so I think that’s more a sales bullet point.

10) XYZ Mutual Long Term Care Insurance be rolling out a new product with higher pricing soon, but we don’t have the date yet.  If you get your app in before the deadline you’ll be grandfathered into this product.

11) Yes, if you took your deductible out to one whole year with ABC Mutual, it then would only be 15% more expensive than XYZ Mutual with a 90 day EP.

12) We did not quote the best XYZ Mutual rate class, rather their second best rate class.   We did quote ABC Mutual best rate class.  There’s a good chance you might not get ABC Mutual best rate class.  The agent is mudding the waters with what the companies call their rate classes.  The best way to do it is know that XYZ Mutual has three rate classes and we quoted you the second best.  ABC Mutual  has three as well ( Standard, rate 1 and rate 2)  You were quoted ABC Mutual best rate class.

A long list John so if I missed something just let me know, or click here for more info: http://comparelongtermcare.org/ thanks!

My Love For Music

I have always fallen in love with the beautiful harmony of music. It began with the piano, the soft cadence and graceful dance of the fingers as they graze upon the white and black keys, each soft touch producing a soft note, and each note in sequence produces a wonderful melody. The piano was my refuge as I was growing up and it became one of the central reasons of why I became a DJ.

Soon enough, my teenage years would come and the classical melodies of Bach or Beethoven or Mozart became stale into my ears. Surely, I thought, there must be more to music. There must be more to it than the formulaic albeit melodious concoctions of these great masters. There must be more to it—there must be more emotion, more relate-ability, and more youth. I found it in contemporary music. In rock and roll, where raw emotion spilled out from the shredding of guitars. In country where stories of life and love are told. In jazz where the soul took flight.

I fell in love with all sorts of music. I wanted to cherish each one and embrace each one and understand each one. Soon enough, I began fiddling with mixing them together—a little bit of derivative pop here mixed in with some rock and roll, with a dash of techno. I never knew that there was a name to what I was doing until much later. All I knew was that this was all an invigorating experience to me. For the first time, I truly felt that I was being led towards the right direction—towards where I should be heading in the first place.

When I finally took it seriously, I realized how difficult it truly is to hone your craft at something. Music was a fluid entity, it cannot simply be held or chained or jailed. One has to tame music, to understand its machinations and its movement to be able to handle it. Being a DJ is being a tamer of music. If you allow it to flail about wildly, you create noise and not music. If you control it too much, it loses its heart and its true joy and all you are left with is a shell of its original self. Being a DJ is understanding when to let go and when to hold tight. It’s a true balancing act.

There are also numerous instruments and tools that a DJ has to be familiar with. One must be able to master the use of all these so that you can truly allow your creativity to flow. Do not make the struggle about the gadgets that you use. Be diligent and learn how to use them so that they will not become the hindrance that will hamper your creativity. The key is to be able to turn the tables around and actually use these gadgets to your advantage; instead of them preventing you to be creative and sapping away your creativity, let them accentuate it.

Another important part of being a DJ is also understanding people. You cannot be self-centered. At the end of the day, even if you are doing what you are doing because you enjoy doing it, you also have to think about the audience that you want to entertain, you also have to understand what makes them happy and what makes them entertained. Understand who you are playing to. Understand what makes them jump up and down. Understand what keeps them on their seats. A good DJ has a good sense of what the audience wants and success in understanding people fuels a DJ’s further venture.

Knowing to respect music is also one of the most essential things that one should have if one wants to become a DJ. One cannot simply mish and mash songs together and expect something good to come out of it. Only DJ’s who have a good sense of understanding of music are able to make amazing concoctions because they respect the roots of music, they understand where it’s coming from, they understand who it was written for. DJ’s who have this sense are those who are able to come up with sick beats that you never once thought would be possible.

It is also quite vital to note that being a DJ is not always a luxurious affair so if you want to become a DJ because you think you’ll be filthy rich in the process, then your fundamental mindset is mistaken. Being a DJ is often fueled by creative gusto and not the obsession over money. If you just think about the money all the time and fixate yourself over it, you will not find professional satisfaction and fulfillment and become a DJ and your career will definitely be short-lived. Only those who are able to see beyond the possible monetary gain are those who will be truly successful in this career.

Sometimes it becomes too difficult, too routine, too exhausting but then I remember that the reason that I became a DJ in the first place was because I had fallen in love so deeply with music—in all its shapes and forms—and I had wanted to share this love with other people. At the same time, I thrust myself into the art and experimentation of music and I have also found energy and zeal in the manipulation of music. This is where I draw my strength from and how I am able to continue no matter how difficult it can be.

I chose to become a DJ because music was my life and I wanted to live and breathe music every second I got and I reckoned that I would only find that sort of life in being a DJ. Now I am living in the moment. Every song I remix and every beat that I make, I infuse with my unfettered dedication and love for the craft. I am trying to live the life of a musical artist, pushing the boundaries while respecting and paying homage to the source of it all.