How to have your cake and eat it too.
Clients today are looking for solutions with the flexibility to handle multiple financial needs in a variety of potential scenarios. A common complaint about Long Term Care is many clients feel the likelihood they should have an extended health care event is zero. Traditional Long Term Care insurance is protection designed to protect against a singular event- a long term care event. If your client can’t envision a world where they should need assistance, the idea of purchasing protection for an event that will never happen seems useless and wasteful.
Instead of trying to persuade the client to purchase what they view as unnecessary protection, why not propose a plan that offers additional layers of protection for scenarios that they do view as likely.
Asset Based LTCi is designed to help protect your clients from an extended health care event, but maintains enough flexibility to provide value if the client was correct, and they never use the LTC benefits. It’s designed to protect your clients’ assets by using the safety of whole life insurance. With a guaranteed premium, your clients will receive a guaranteed amount of life insurance that can be applied to their LTCi expenses. Your premium is also credited with a minimum guaranteed interest rate, meaning your cash value is guaranteed to grow each month. If your clients grow tired of the product, they have the option to request a full return of premium, thus providing an increased level of flexibility that many clients are seeking.
One carrier in particular has taken this idea of flexibility and worked to re-envision the LTC world as we know it. Almost as if they gathered all of the Long Term Care experts together in a room and asked- what can we do to design the perfect, most flexible product for you the advisor but still work to protect your clients? Here’s what they came up with:
- Unlimited Long Term Care Benefits that can never be exhausted
- Guaranteed, Non-Cancelable premiums that can never be altered
- Payment Flexibility- lumpsum, 10 to 20-pays, pay for life, or a combination of lumpsum and annual payments
- Primarily focused on Long Term Care, but offers return of premium and death benefit for those without a LTC need.
- The potential to convert tax deferred growth to tax free income when used for Long Term Care
- A separate solution for health impaired clients that allows those declined for coverage an alternative pivot solution with reduced benefits
- Joint case design allowing spouses, business partners, siblings, and even parents and children to take advantage of the reduced costs associated with joint policies
- Flexible funding source- Cash, Annuities, 1035 Life Insurance, and Qualified Money
- A carrier willing to partner with advisors to offer marketing dollars and ideas to help advisors incorporate Long Term Care planning into their practice
These policies can help your clients prepare for a long term care event if needed, or leave a legacy to their beneficiaries all within one single policy. To learn how to show your clients how to position themselves in the re-envisioned Long Term Care World, please contact me today.
Matt Anderson, Broadtower President