"I'll just drop the plan" sounds like a reasonable reaction to a rate increase letter until you compare the numbers. Learn how to turn one of the most emotionally charged conversations in LTCi into a planning opportunity.

Rate increase letters are one of the most uncomfortable moments in the long-term care insurance lifecycle for clients and advisors alike. But with the right preparation, empathy, and strategy, this conversation can actually reinforce your value and reaffirm the client's original planning decision.

In this episode of the Buddy Study Podcast, we walk through how to master the rate increase conversation from start to finish, from what to say at the initial sale to how to advocate for clients when the letter arrives.

We explore:

• Why preparing clients for the possibility of rate increases at point of sale sets up better conversations later
• How to explain the rate increase process, including the role of state insurance departments
• Why leading with empathy is critical before moving to logic and numbers
• How LTC industry history and early actuarial assumptions led to underpriced legacy plans
• Reframing the rate increase as evidence the client made a smart financial decision
• Running new business comparisons to demonstrate the value of an existing plan even after the increase
• Why the options listed in the carrier's rate increase letter may not be the best options available
• The potential trap of "stable premium" options and how to evaluate them
• When and how to call the carrier to explore custom benefit adjustments

This episode is designed to help advisors:

• Navigate rate increase conversations with empathy and confidence
• Show clients the real-world value of their existing coverage
• Advocate beyond the carrier's default options to find better solutions
• Turn a negative client experience into a trust-building planning moment

Chapter Markers

0:00 Welcome & Episode Overview

2:55 Preparing Clients at Point of Sale

4:58 How the Rate Increase Process Works

7:44 Leading with Empathy When the Letter Arrives

9:18 LTC Industry History and Underpriced Legacy Plans

13:25 Reminding Clients Why They Bought the Plan

16:50 Crunching the Numbers — Showing Plan Value

20:53 Walking Through the Rate Increase Letter

23:48 The Stable Premium Option Trap

26:33 Guest Insights on Inflation Growth and Benefit Value

34:49 Tools for Rate Increase Comparisons

38:26 Final Thoughts & Advisor Takeaways

Watch the video version:

https://youtu.be/6EvD23NWGmE?si=jGjqpeDVyLDFp52i

📅 Join the Weekly Buddy Study Groups

This podcast is an extension of the Buddy Study Groups, a free educational community for financial professionals.

Weekly Calls:

Individual LTCi Study Group: Tuesdays at 1 PM PT

Add to Calendar 👉 https://www.addevent.com/event/Il19620844

Group LTCi Study Group: Thursdays at 1 PM PT

Add to Calendar 👉 https://www.addevent.com/event/vs19612672

No membership fee. Just education, collaboration, and better planning strategies.

🔎 About Buddy Study Podcast

The Buddy Study Podcast helps insurance professionals and financial planners master Long-Term Care Insurance through case studies, expert interviews, and carrier product updates. Our goal is to help advisors become more confident, efficient, and knowledgeable when helping clients plan for long-term care.

In this episode Jason and Tommy Jondall, National Sales Director at EquiTrust, walkthrough the Bridge product, a 7702B-compliant, LTC-enhanced fixed indexed annuity (FIA) hybrid that offers guaranteed approval regardless of a client's health history. Whether you work with clients who have been declined for traditional LTCi, or you're building referral relationships with financial advisors who want an LTC solution without complex underwriting, Bridge introduces a distinctive planning tool worth adding to your toolkit.

We explore:

• How Bridge combines FIA accumulation with LTC benefits on a 7702B-compliant chassis
• The guaranteed approval structure, three underwriting classes (Secure, Standard, Preferred), and why approximately 70% of applicants are currently qualifying as Preferred
• The January 2025 product updates: lowered issue age to 50, improved benefit base roll-up to 3% compound for 20 years, and an extended 5-year coverage ratio window
• How the Never Stop Wellness Program works and how wellness credits add to the benefit base over time
• The 5-year vesting schedule, monthly rider charge structure, and FIA growth options
• A real client case study: how a $100,000 premium grows into over $554,000 in available LTC benefits over 15 years
• Sales opportunities with 1035 exchanges, RMD funds, previously uninsurable clients, and borderline health cases
• The three-statement seminar approach and real-world conversion results from advisors in the field
• Practical field underwriting tips to help clients present their best outcome on the underwriting call

This episode is designed to help advisors:

• Understand the Bridge product structure and how to position it in a planning conversation
• Identify the right client profile for an LTC/FIA hybrid approach
• Apply field underwriting best practices to improve client outcomes
• Recognize Bridge as a strong option for clients with complex health histories or previous declines

0:00 Welcome & Episode Overview
0:42 Bridge: The FIA/LTC Hybrid Structure Explained
2:26 Guaranteed Approval & The Three Underwriting Classes
4:23 The 5 Screening Questions Walkthrough
6:07 Never Stop Wellness Program
8:07 Product Specs, Coverage Ratios & Growth Options
9:22 Vesting Schedule & Rider Fee Structure
12:44 January 2025 Product Updates
13:53 Claims Process: The 60-Month Payout Explained
14:59 Derek Case Study: Projecting Real Client Outcomes
17:58 Sales Opportunities & The 3-Statement Seminar Approach
23:24 Field Underwriting Best Practices & Q&A

📅 Join the Weekly Buddy Study Groups

This podcast is an extension of the Buddy Study Groups, a free educational community for financial professionals.

Weekly Calls:

Individual LTCi Study Group: Tuesdays at 1 PM PT

Add to Calendar 👉 https://www.addevent.com/event/Il19620844

Group LTCi Study Group: Thursdays at 1 PM PT

Add to Calendar 👉 https://www.addevent.com/event/vs19612672

No membership fee. Just education, collaboration, and better planning strategies.

🔎 About Buddy Study Podcast

The Buddy Study Podcast helps insurance professionals and financial planners master Long-Term Care Insurance through case studies, expert interviews, and carrier product updates. Our goal is to help advisors become more confident, efficient, and knowledgeable when helping clients plan for long-term care.

"It's a free rider — it must be a better deal." That assumption is costing advisors and their clients more than they realize. Learn how to identify what you're actually selling when it comes to chronic illness riders on life insurance.

With nearly 350,000 chronic illness rider policies sold annually and 88% carrying no upfront charge, these riders have become the dominant combination product in the market. But not all chronic illness riders work the same way, and the differences matter at claim time.

In this episode of the Buddy Study Podcast, Ramona Neal, president of Living Benefit Review and a 35-year life insurance industry veteran, breaks down the critical variations between chronic illness riders and explains why understanding the underlying life insurance chassis is essential for any advisor selling combination products.

We explore:

• Why 93% of LTC-related policies sold today are on a combination life insurance chassis
• The four types of chronic illness rider variations: upfront charge, discount method, lien method, and hybrid combinations
• Why "no charge until acceleration" riders may only pay a fraction of the death benefit — or nothing at all
• How the discount method calculates benefits based on age, health, and claim status at time of acceleration
• The difference between riders filed under IRC 101G vs. 7702B and what that means for marketing compliance
• Why illustrations for free riders appear more competitive but may deliver inferior benefits
• The importance of reading contract language versus relying on producer and client guides

This episode is designed to help advisors:

• Identify which type of chronic illness rider they are selling and set accurate client expectations
• Understand the underlying life insurance chassis before recommending 1035 exchanges
• Communicate the trade-offs between rider cost and benefit predictability with confidence
• Protect themselves from E&O exposure by managing expectations at point of sale

Chapters

0:00 Welcome & Introduction to Ramona Neal

2:29 Understanding Life Insurance Chassis Types

5:02 Whole Life, Universal Life & Guarantees Explained

9:27 Index Universal Life: Complexities and Context

13:18 1035 Exchanges: Disclosure and Risk Considerations

18:03 LIMRA Market Trends: Combination Product Sales

21:48 Traditional LTC vs. Combo Solutions by Policy Count

26:03 Chronic Illness Riders: Upfront Charge vs. No Charge

33:08 The Lien Method and Benefit Predictability

36:22 Key Hallmarks of LTC Riders vs. Chronic Illness Riders

39:49 Hidden Variations in Rider Contract Language

44:49 Critical Illness

📅 Join the Weekly Buddy Study Groups

This podcast is an extension of the Buddy Study Groups, a free educational community for financial professionals.

Weekly Calls:

Individual LTCi Study Group: Tuesdays at 1 PM PT

Add to Calendar 👉 https://www.addevent.com/event/Il19620844

Group LTCi Study Group: Thursdays at 1 PM PT

Add to Calendar 👉 https://www.addevent.com/event/vs19612672

No membership fee. Just education, collaboration, and better planning strategies.

🔎 About Buddy Study Podcast

The Buddy Study Podcast helps insurance professionals and financial planners master Long-Term Care Insurance through case studies, expert interviews, and carrier product updates. Our goal is to help advisors become more confident, efficient, and knowledgeable when helping clients plan for long-term care.