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Tuesday, July 3, 2007

Combo Products - The Product for the Next Era

"This will guarantee you income for as long as you live, and it covers you if you end up in a home".

That one sentence is the start of a revolution. Combo products, especially life and annuity products with an LTC rider, are going to be the next big thing in our industry. The combo product addresses EXACTLY what the affluent retiree is worried about - outliving his or her assets, or depleting his or her estate due to an extended stay in a nursing home.

It solves everything that was wrong with long-term care in the first place; the morbidity risk is mitigated by the fact that in most cases, you're just giving the guy or gal his or her money back early.

So, what's stopping you? At least one carrier actually sold the lights out of this product - but they had to pull it, because they couldn't administer it. Other carriers are so hung up on their own silos that they are letting an opportunity pass them by. The LTC folks want it to be the annuity folks' problem, and vice versa. DON'T let this happen to you! There's no time.

Make sure that your Retirement Services division (or whatever you call it) knows it's not just going to be dealing with payout annuities. Make sure that they can administer these products! As I'm sure you're aware, most admin systems can't handle a required-premium LTC rider on a flex-premium base. If yours can't do it, go get one that can!

Don't miss this opportunity.