Long-Term Care (LTC) Planning once meant buying a traditional, stand-alone Long-Term Care insurance (LTCi) policy; with “use or lose it” benefits and a lack of any real cost certainty.  While prudent financial planning provides many reasons why LTC should be a component of a comprehensive plan, consumers continue to reject traditional, stand-alone LTCi; at the same time, top carriers that sold  LTC i have exited the market. 

With that in mind, perhaps your clients should consider implementing planning solutions carried as an ASSET on their balance sheet rather than an EXPENSE on their income statement and take advantage of what Asset-Based Long-Term Care planning solutions offer, including:

Cost Certainty: Asset-based solutions can be funded in various ways, from a single deposit to a monthly payment, but the key point is that your clients' premiums are fully guaranteed, and they will be completely shielded from any future potential rate increases.

Plan Design Flexibility:   Today's Asset-Based solutions provide the benefits your clients need, along with the options they might want.  Eliminating "use it or lose it" benefits and guaranteeing residual value if care is never required is a huge value proposition.

Maintain Control: Asset-based solutions give clients the ability to maintain control over the assets in the plan rather than paying an expense for "use it or lose it" benefits; these solutions provide three ways to control the plan: Live, Quit, or Die. "Live" is access to the plan's LTC benefits, "Quit" is access to the cash value if your clients surrender a plan, and "Die" is the death benefit if LTC benefits aren't utilized.

Asset Efficiency:   Asset-Based planning solutions ensure that plan dollars are working efficiently, creating the opportunity to achieve multiple goals with one financial instrument.  The efficiency is further enhanced with the ability to use retirement account dollars, annuity & life insurance cash values, or low-yield deposit accounts to create a plan.  

Inflation Protection:   Healthcare costs continue to increase every year, and plan options can provide the ability to mitigate the risk of those rising costs.   Many solutions offer this feature, and some do so with little or no cost to the consumer. 

Maintain Independence:   The vast majority of those receiving care do so in their home or through non-traditional sources, and Asset-Based solutions often provide liberal access to plan dollars or short waiting (elimination) periods.  This can be a big plus in a time of crisis. Additionally, some solutions provide cash "indemnity" benefits that eliminate the need to submit bills for "reimbursement". 

Ease Family Burdens:   Care Services or Care Coordination is an added feature to most Asset-Based solutions and further helps families cope with the emotional, physical, and financial strain associated with loved ones experiencing Long-Term Care needs.

Please contact us to discuss Asset-Based solutions for your clients' LTC Planning needs...

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