Research shows that most clients value three distinct priorities in creating a plan to address long-term care costs:
- Flexibility
- 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 have created this guide to help you match your clients’ needs with the optimal LTC solution. Use the guide as a reference as you 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. |
Click here to download a PDF version of the above pocket guide.
No matter the priority, we 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.
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