- The two companies that have the most competitive policies are Mutual of Omaha and National Guardian Life. There used to be more, but many got out of the business.
- The key piece of information to know is the daily benefit. This is what is paid out on a daily basis once the conditions are met to qualify for the insurance. The standard is $200, but should depend on the cost of living in the area. You should also have ready the monthly ($6k), annual ($72k), and total ($216k over a 3 year benefit period)Â amounts.
- In addition to knowing the daily benefit the client wants, to quote a policy you'll need (a) zip code (b) date of birth (c) whether it's for a couple or individual because there's a 10-15% couples discount (d) the length of the benefit period for which you get that daily benefit. Typically it's 3 years. (e) the elimination period, which is the time that you self-fund once the insurance triggers before the benefit sets. It's usually 90 days, up to 1 year.
- There are other riders, such as (a) adding an inflation protection of 3% (b) return of premium if you never use the insurance, but it's usually cost prohibitive. Importantly, there is no death benefit.
- Underwriting is required, and a history of mental health disorders or alzheimers may lead to ineligibility
- You also usually need to pay premiums for 3-4 years before the benefit pool becomes available.
- It's always good to do younger when you're healthier! It can get expensive ($300 - 400 per month) once you hit your 60s
