A Pocket Guide To The Myriad Of LTC Funding OptionsJulie Brooks
Research shows that most clients value three distinct priorities in creating a plan to address long-term care costs:
- Protecting and growing their portfolio
- Minimizing the impact of care on their family
Identifying your clients’ top priority and primary concern will help you implement the right strategy and solution to plan for their long-term care needs.
As a thought leader in the long-term care industry, we created this guide to help you match your clients’ needs with the optimal LTC solution.
Use this reference guide to discuss the needs and priorities of your clients
|Client’s Top Priority||Solution||Considerations|
|Protect assets from an extended health care event||Traditional LTCi||PRO: Maximizes LTC leverage while minimizing premium commitment. Potentially tax deductable particularly for businesses.CON: Premiums not guaranteed, lack of flexibility|
|Protect assets from an extended health care event while retaining maximum flexibility||Asset Based LTCi||PRO: Maximizes flexibility while still retains a primary objective of providing a substantial benefit for an LTC event.Provides Return of Premium, Death Benefit, and LTCi. Guarantees level premiums.CON: Reduced death benefit when compared to Life with rider option. Reduced LTC pool when compared to traditional LTCi|
|Maximizing Death Benefit while retaining some flexibility||Traditional Life Insurance with an accelerated benefit rider||PRO: Provides largest Death Benefit while retaining flexibility to pay for LTC costs.Better suited to pay for benefits on a monthly basis if needed.CON: Reduced LTC benefit when compared to Traditional LTC and Asset Based LTC. Typically does not offer 100% ROP.|
|Long Term Care options late in life with potential health concerns||Fixed or Indexed Annuity with LTC Rider||PRO: Provides streamlined underwriting for clients with current health concerns while turning tax deferred growth to potentially tax free income.CON: No immediate leverage of the base asset and limited growth opportunities when compared to alternative annuity options.|
|Access to money||Self-fund||PRO: Zero upfront cost while retaining liquidity.CON: Pay dollar for dollar for any care needed. Estate serves as primary funding source.|
No matter the priority, your LTCI Sales Rep can help you find the best solution for each of your clients’ needs. To set up a time to discuss some specifics, or for more information, contact us today.