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Old 12-02-2013, 05:43 PM   #21
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That's what I'm afraid of...that the premiums will go up as I get nearer to the age where I would actually have to use it. I talked to my niece-in-law, who I totally forgot is a financial planner (don't see her that often), and she recommends LTC insurance. She couldn't believe the Ameriprise FP hasn't sent me a written plan after 2 months. She works for Primerica and she says she must have a written plan to a new client within 2 weeks and doesn't charge for it...she makes money on commissions for the products she sells to them. She says don't worry about cancelling this FP, because it happens all the time...and she's sure it's not the first time it has happened to him. Do you think I owe it to him to talk to him on the phone about cancelling or should I just send in the form and blindside him, which I feel kind of guilty about doing? Ugh, how do I get myself in these situations!
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Old 12-02-2013, 05:53 PM   #22
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[QUOTE=samclem;1386121]Yes, that's a very good move. And state in the letter that you haven't received your financial plan. And when the "advisor" calls asking you to reconsider, make it absolutely clear that you want your money back immediately.

Yes, I did state that in my letter. But when the advisor calls, maybe I should just not answer the phone? After reading the letter saying that I hadn't received my financial plan yet, he will probably say "that's because I wanted to see if you were going to buy the variable annuity and the LTC so I could incorporate that into your plan..." Hmmm...let's see, so he wants me to invest $97,000 in the annuity and $60,000 (over 3 years) in the LTC policy...seriously, I can't wrap my head around it!
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Old 12-02-2013, 05:55 PM   #23
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Originally Posted by Kat07 View Post
Do you think I owe it to him to talk to him on the phone about cancelling or should I just send in the form and blindside him, which I feel kind of guilty about doing?
You don't owe him a thing. Don't feel guilty--you should feel good and MAD! He wasted your time and was very close to costing you a lot of money. I'm sure he is very personable and you hit it off well with him, but you can bet he will leverage any feeling of guilt on your part to continue to do damage to your finances. He is the enemy of a secure future. I'm sure you've got good uses for your hard earned money--so does he. It's yours. He'll find another victim client soon enough.
If you aren't mad now, re-read some of the other threads from people who have wasted thousands of dollars at Ameriprise. You can bet their "advisors' were very nice to them. Be tough, send the letter, and demand your money back.
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Old 12-02-2013, 06:23 PM   #24
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We were presented with some options for an LTC approach. Traditional LTC, One that is like an annuity and one that is a Universal Life policy with a "life Access" rider. The last one form Hartford seems interesting (I think).

To summarize:
1. It is a 750k life insurance policy
2. At anytime if you meet 2 of 5 conditions determined by a HC provider you can start drawing up to 15k per month and use it for anything. (in home, travel for assistance...your call)
3. Once you start drawing the monthly premiums stop.
4. What ever you draw reduces the payout for the death benefit.

I think the premiums are expensive (like 13k for me) so take that times two. You can reduce the 150k death benefit which would reduce the monthly payout and the premiums.

This seems a little interesting and goes more in the direction of a catastrophic type deal (kind of). We don't really need the life insurance part but guess that would allow us to draw more principle knowing that was out there for the surviving spouse, to some degree.

The LTC policy was half the cost but monthly coverage graduates over time (starts at 5k/month and goes to 18k in 40 years), only lasts for 4 years and premiums will rise

Anybody look at one of these, thoughts
The sales pitch on this is "live, quit or die". The beneficiary can choose to generate benefit one of three ways. The commissions on these are quite high, higher than LTCi, and the overall LTC benefit is lower (dollar for dollar) than traditional LTCi. What goals are you trying to reach?

These policies are usually NOT state partnership LTCi. They won't usually tell you that in the sales presentation either.
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Old 12-02-2013, 06:50 PM   #25
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The sales pitch on this is "live, quit or die". The beneficiary can choose to generate benefit one of three ways. The commissions on these are quite high, higher than LTCi, and the overall LTC benefit is lower (dollar for dollar) than traditional LTCi. What goals are you trying to reach?

These policies are usually NOT state partnership LTCi. They won't usually tell you that in the sales presentation either.

What does "state partnership LTCi" mean?
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Old 12-02-2013, 07:00 PM   #26
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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.
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Old 12-14-2013, 11:20 AM   #27
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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?
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Old 12-14-2013, 11:35 AM   #28
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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.
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Old 12-14-2013, 11:47 AM   #29
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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.
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Old 12-14-2013, 12:01 PM   #30
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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:
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Old 12-14-2013, 12:58 PM   #31
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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!
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Old 12-14-2013, 03:40 PM   #32
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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.
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Update!
Old 01-15-2014, 05:46 PM   #33
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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!!
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