It seems someone forgot to explain to the guest of honor why he was invited to his own funeral. If you read Sheryl J. Moore’s opinion piece “R.I.P combo annuities,” you might think that asset-based long-term care annuities (or “combo” annuities) were no longer a viable product.

As the leader of a company that continues to grow in this segment and has generated significant premium and revenue from it, I found the news of its demise to be premature.

Ms. Moore’s opinion seems to be derived from a primary interest in helping “transactional salespersons.” Our industry has long ago moved beyond this mentality and is now firmly focused on doing what’s good for the client. 

I would encourage anyone who was influenced by this article to reconsider whether they are in business to be a “transactional salesperson” as referenced by Ms. Moore–driven only by speedy commission payments. Our experience has been that professionals willing to take on the role of trusted financial professional to a client will, indeed, wait longer than 24 hours for a commission. These producers will know that combo annuities offer real protection for clients, especially clients who have reached age 70. For these consumers, value and protection have become far more important than rate and return.

Taking the extra step for a client

I’m pleased to say our company works with many solid and thoughtful financial professionals who commonly choose to take the extra step of doing what helps protect a client. To them, it’s not the administrative process that gives them pause. It’s the thought of their clients getter closer and closer to their fragile years and not being adequately prepared for what’s in their future.

In reality, most asset-based annuities with long-term care benefits are underwritten without medical exams and via a simple phone interview. Compared to the legacy-shattering reality of being underprepared for long-term care expenses, many Americans would find this to be a minor inconvenience.

Asset-based products appeal to a deeper audience of financial professionals and Certified Financial Planners®. The days of these professionals introducing themselves as “salespeople” have long passed. Asset-based long-term care products were never designed or intended to be for every client. Very few products are. But they are a tool that should remain in a producer’s toolbox to be pulled out when appropriate.

Our company and its representatives respect LifeHealthPro.com and its contributors. However, in this instance, we have a different view of this product. From our pioneering leadership in this market, combo annuities not only have a strong past, but a healthy present and a bright future. 

Products and services provided by The State Life Insurance Company, Indianapolis. Products not available in all states or may vary by state.

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