LTC vs UL Insurance with Rider

[jIMOh]

What does "state partnership LTCi" mean?

State partnership means medicaid will exempt assets from a spend down if a partnership policy was used to pay for LTC.

For example, if you have a policy which pays $100 day for one year, that is $36,500 (365 days times $100). Medicaid would allow you to keep $36,500 in the bank and pay benefits for the care on the 366th day.

This is helpful if a spouse still needs the income/assets, and also helpful if you desire to leave money to kids or a charity.

 

[Kat07]

UPDATE: I got my financial plan delivered via UPS the day after I posted! Since I wanted to go over it with him, I haven't pulled the plug. Of course in my plan, he had my current retire plan (without buying a variable annuity) and the proposed (buying the LTC and the variable annuity). Of course the proposed plan showed my net worth at age 89 would be $215,500 more if I went with the variable annuity and LTC. Of course there is a disclaimer at the very bottom in small print that says "The projections utilize return data that do not include fees and operating expenses, are not available for investment, and are show for illustrative purposes only." Seriously? they don't include fees and expenses?? sheesh. Also, I have an old 403b plan with Ameriprise that my employer had for a short time with them, but it has only $1100 in it. I told him I wanted to get rid of it, but he told me instead I should transfer 3 IRAs I have that total about $24,000, making only about 3% (the minimum guaranteed) into the 403b that made about 21% YTD (which I had not previously figured out) and about 12% over the last 5 years. There is a $24 annual fee. Seems like a good idea, but then again maybe I should leave the 403b alone and take that my 3% IRA and transfer it over to a Roth IRA.

Oh yeah, that LTC product he was trying to push is NOT state-partnershipped, and I did ask him about this and asked why he didn't mention it in the first place, and he said it was'nt that big of a deal because I could self-insure if my LTC pool of $288,000 ran out....Seriously?

 

[samclem]

Kat07,
You are wasting his time and your time and money. Spring clear of this relationship with this FA. He has proven that he doesn't have your best interests at heart, and you already know Ameriprise exists to rip you off. You are smart enough to see the sign, be smart enough to pull the plug and save your money. His suggestions that you roll >more< money into the grasp of Ameriprise should have made you laugh and hang up.

 

[Kat07]

Thanks, Sam. You're right...I also can tell him that, since he never disclosed the LTC not being state-partnershipped, I wonder what other negatives he hasn't disclosed. When I asked him about the cons of the variable annuity, I don't remember him even mentioning any. And when we were going over the written financial plan, when he showed me my net worth for the "current plan" versus the "proposed plan", he certainly didn't mention it was hypothetical and that it didn't include the fees. Ugh.

 

[samclem]

C'mon, Kat! Are you married to this guy? End this relationship and move on. It's really for the best for both of you. I'm not sure why you feel like you need to come up with excuses/reasons to leave. Just end it!

Sorry for the annoying Russian overdub, but if you've seen "Ruthless People" you know the scene:

 

[Kat07]

LOL!! thanks for the clip! yeah, it's not my problem he's invested so much time on the phone with me trying to push his products! plus my ideas never to seem to jive with his anyways, so time to say bye-bye!

 

[pb4uski]

LOL!! thanks for the clip! yeah, it's not my problem he's invested so much time on the phone with me trying to push his products! plus my ideas never to seem to jive with his anyways, so time to say bye-bye!

Good decision. Don't let him reel you back in.

 

[Kat07]

Update!

Finally said bye-bye to my Ameriprise FP. Well, actually all I did was fax the cancellation papers to them on 1/2/14, plus asked for a $50 refund (for month of December). They processed the papers on 1/6/14 and I got my refund check shortly after. Could not believe how painless it was! So of course I assumed our previously set up phone appointment for today would be cancelled, since i had cancelled the FP services. Oh no...I got a message on my phone confirming today's appointment so I called and explained that I had cancelled so I ASSUMED that today's FP appointment would be automatically cancelled. Then the guy says, well, I think your FP wants to talk about an LTC plan and a variable annuity with you. HUH? I said again, I have CANCELLED the financial planning service with Ameriprise and already got a refund, and I DO NOT WANT TO BUY ANY PRODUCTS!!!! he then says, "just a minute..." then he comes back on the phone and says, well, he would still like to talk about the 403b plan you have with us." I said no, I don't need to talk about that, so just cancel the appointment. ARRRGGHHH!!!! unbelievable!!