[LTPC-discussions] Tax Qualified vs. Non TQ

Thu, 17 Jul 2003 08:33:27 -0400

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The plan that came with the certificate was from Penn Treaty. Nice
marketing touch. The problem with PT in VA is that they look at the 90
days of possibly needing care as a reason to not pay until the 90th day.
If the client got well on the 89th day, there was no money for them,
even if they had a '0' day waiting period,  even though the doctor had
said they would probably need care for 90 days. The Area Agency on Aging
said they could do nothing about this until there was a real complaint.
I'm waiting for the complaint any day. Most of the other companies (JH
was also doing this at first), go with the "doctor cert" and if you get
better sooner, great - keep the money. Ask the claims department of each
carrier to be sure. Keep your e.o. insurance up to date.

David

SoederCA@aol.com wrote:

> Having worked with Penn life in Wisconsin TQ vs NTQ was a big topic.
> We offered a NTQ that had looser triggers that the TQ so we used that
> as a selling point for folks that were shopping around.
>
> To the best of my memory on their comp. plan you only needed to be
> unable to perform 1 ADL to trigger  Home Health Care benefits and both
> parts, facility and HHC had "Doctor deems neccessary" as a trigger.
> And the cognitive imparement definition was diagnosed with a cognitive
> impairment as apposed to unsafe due to severe cognitivve impairment
> which is a TQ standard. As far as I know each NTQ is different
> depending on the carrier.
>
> The big question being what's taxable. As of right now both plans can
> be written off up to specific age guidlines. And benifits are not
> taxable for either. Penn Life (and at least one of LTPC's products,
> which I could never get a straight answer from LTPC on) offer a
> certificate with the NTQ that states in the event legislation is
> passed the would make NTQ benefits taxable the client could choose to
> switch to a TQ and offen their premiums would decrease. At Penn Life
> the NTQ was slightly more expensive than the TQ.
>
> I hope this information is usefull.
>
> Best regards,
> Louie Soeder

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The plan that came with the certificate was from Penn Treaty. Nice marketing
touch. The problem with PT in VA is that they look at the 90 days of possibly
needing care as a reason to not pay until the 90th day. If the client got
well on the 89th day, there was no money for them, even if they had a '0'
day waiting period,&nbsp; even though the doctor had said they would probably
need care for 90 days. The Area Agency on Aging said they could do nothing
about this until there was a real complaint. I'm waiting for the complaint
any day. Most of the other companies (JH was also doing this at first),
go with the "doctor cert" and if you get better sooner, great - keep the
money. Ask the claims department of each carrier to be sure. Keep your
e.o. insurance up to date.
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
David
SoederCA@aol.com wrote:
<blockquote TYPE=CITE>Having worked with
Penn life in Wisconsin TQ vs NTQ was a big topic. We offered a NTQ that
had looser triggers that the TQ so we used that as a selling point for
folks that were shopping around.
To the best of my memory on their comp.
plan you only needed to be unable to perform 1 ADL to trigger&nbsp; Home
Health Care benefits and both parts, facility and HHC had "Doctor deems
neccessary" as a trigger. And the cognitive imparement definition was diagnosed
with a cognitive impairment as apposed to unsafe due to severe cognitivve
impairment which is a TQ standard. As far as I know each NTQ is different
depending on the carrier.
The big question being what's taxable.
As of right now both plans can be written off up to specific age guidlines.
And benifits are not taxable for either. Penn Life (and at least one of
LTPC's products, which I could never get a straight answer from LTPC on)
offer a certificate with the NTQ that states in the event legislation is
passed the would make NTQ benefits taxable the client could choose to switch
to a TQ and offen their premiums would decrease. At Penn Life the NTQ was
slightly more expensive than the TQ.
I hope this information is usefull.
Best regards,
 Louie Soeder</blockquote>
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