Mutual's Custom Solutions LTC ChartUsing the new inflation Points, Increments and Caps – we call them PIC — on Mutual’s Custom Solutions LTC product will help you get your clients to the price point where affordability lives.

What does all that mean? The average LTC sale price hasn’t changed – what your clients can buy for that $2400 has. We have to help you get your clients to a point where the benefits available for that price make sense. And with PIC, you have the resources necessary to do that.

Why do we know this will work? Because we’ve been here before. A quick history lesson….AIM brought 3% Compound to the LTC market about 10 years ago with a carrier partner. When we did, people rolled their eyes and said it would never make a difference….they said agents wouldn’t change their behavior….they said it wouldn’t work….. Well, what are people selling right now? Yeah, 3% compound.

Anything new gets snickered at…..but the truth is the inflation choices in the Custom solution product make it more flexible than an Olympic gymnast… and whether you believe it or not now, you’ll come to see that 2 % compound inflation – guaranteed and with a buy-up option — will provide meaningful growth to your client. Their 200,000 benefit pool will grow to 362,000 in 30 years. Meaningful growth and $24,540 premium savings when compared to 3% compound inflation over the same time frame.

When we saw that gap, we knew we needed more flexibility….so we reduced the increments down to a quarter-point. And that’s meaningful as well. You need to nudge the premium down a bit on a $4600 average sale? Drop the inflation a quarter-point and save that client $222 a year. Meaningful savings…..$6660 over the typical lifetime of the policy.

And Caps…..We know those matter because you’ve sold the heck out of the 20-year cap since we brought it to you 6 years ago……Have a 60-year-old couple who don’t want to drop below 3% Compound? Use the 20-year cap and you save $685 a year. Again, meaningful savings. Another way for you to help more people.

We know it matters, because while prices have increased, the average sale premium — $2400 annual BTW — has not. And they’ll have their PIC of ways to get to that price point where affordability lives.