Long-Term Care Planning
Our 4-Step Planning Process
Long Term Care Planning - proactively designing a plan to protect your assets, lifestyle, and family from the high costs associated with a long-term care event
STEP ONE
what is long-term care?
We examine the misconceptions and define what long-term care actually means- while tying your personal experiences into the planning process.
STEP TWO
why plan?
Here we review the risk, the costs and the available funding sources society has left you with today.
STEP THREE
what are your options to plan?
A discussion about your options to plan. We will cover whether self-insuring makes sense and how insurance may fit in your current plan.
STEP FOUR
finding the best fit
This is where we cover the entire universe of product solutions and determine which fit your personal situation best. Today's solutions need to be creative in order to balance cost and value.
What's Your Best Option?
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long-term
care insurance
Protect your assets from an extended health care event.
PROS:
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The most LTC benefit leverage - most efficient use of premium dollars
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LTC carriers administering LTC claims
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Typically, more bells and whistles
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Inflation Protection more efficient in pricing
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Tax deductible for business owners
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HSAs
CONS:
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Lifetime pay only
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Don’t use it, you lose it
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Premiums are not guaranteed
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No cash values
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Strictest morbidity underwriting
linked-hybrid asset based hybrid
Protect your asset and retirement savings from
an extended health care event while retaining maximum flexibility.
PROS:
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Decent LTC benefits with a surrender and death benefit return of premium
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Single and multi-pay options
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Guaranteed premium and benefits
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Handles most objections – Care, Die or Quit
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Complements self-insured strategy – cash alternative
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1035 exchanges from existing life policies
CONS:
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Large lump sums get you most leverage
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Average out-of-pocket - $100,000 (Lump Sum or 10-Pay)
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Not the same tax advantages as LTCi
life insurance
Maximize your death benefit while retaining moderate flexibility.
PROS:
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Death benefits are maximized, LTC rider cost is relatively low
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Can be a guaranteed premium or current assumption design
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Will always provide a death benefit and long-term care benefit or both
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Can provide cash surrender values if desired
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Flexible payment options
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1035 exchanges from existing life policies
CONS:
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LTC use reduces death benefit
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Benefit triggers are not standardized
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More expensive than traditional LTCi
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Inflation growth prohibitively expensive
Fixed annuities
Long-term care options late in life with potential health concerns
PROS:
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Limited or no medical underwriting
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1035 exchanges from existing annuity can turn tax-deferred growth into tax-free LTC payments
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Maximize existing use of existing annuity asset
CONS:
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Requires large deposits to gain significant leverage
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Limited benefit growth potential
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Some plans only cover facility-based care
self funding
Access to money now
PROS:
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You are probably already doing it
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No costs associated with transferring risk to insurance products
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Retain liquidity for emergencies
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Often combined with insured strategy to maximize risk management
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Don’t lose it if you don’t use it
CONS:
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No leverage – you are spending dollar for dollar on care
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Tax timing consequences may occur depending on where funds are invested
Let's Chat
We invite you to explore our personalized planning process with a free no-obligation appointment with one of our long-term care planning specialists. Our goal is for you to learn "in your own space, at your own pace". This meeting can take place in person, over the phone or through the computer. Sign up for a free consultation using the "Book It" button below.
Product Universe & Resources
long-term
care
insurance
Insurance
CORE CARRIERS
linked-
hybrid asset based hybrid
Insurance
CORE CARRIERS
life
insurance
Insurance
CORE CARRIERS
Fixed
annuities
Annuity
CORE CARRIERS
