The rising cost of care can devastate your clients’ retirement nest egg if not properly protected. Our specialists can guide you through the fast-changing world of LTC products which include traditional plans, hybrid plans, asset-based solutions and more.
WHAT LONG TERM CARE INSURANCE CAN DO FOR YOU
Increased life expectancies can sometimes mean battling illnesses and financial stresses later in life. Nobody plans on needing long-term care (LTC), but studies show 70% of people over 65 will need care at some point1. While we hope our retirement plans or family members will sustain us, planning for the possibility of an extended care event is an important way to protect our financial future.
DISPELLING THE MYTHS
Isn’t Long-term care covered by health insurance?
Some health plans cover a limited amount of care, but usually do not cover the activities of daily living such as dressing, bathing, and cooking.
Won’t my family take care of me?
While your family may be able to take care of you for a while, it’s not a realistic solution for individuals who need around the clock care. What if your family members work full-time, live far away, or are unable to care for you?
Can’t I just pay for it with my savings or retirement?
Some wealthy individuals may be able to self-insure, but the cost of LTC can quickly add up for most people.
Won’t the government take care of my long-term care needs?
Programs such as Medicare and Medicaid are available for people in need of extended care, but often require that individuals drain their assets before any government assistance can be provided.
LTC PRODUCTS
- Traditional LTC Plans: These plans offer the lowest cost and most flexibility in plan design, and often have adaptable inflation and duration options. However, they also have limited price guarantees, and many older plans have experienced price increases in recent years.
- Hybrid Life/Asset-Based Plans: Clients can leverage underutilized assets to create a larger pool of money to pay for long-term care. These plans are designed for simplified underwriting which often do not require medical exams. In the event the policy is never used, heirs will still receive a valuable life insurance benefit.
- Universal Life with Living Benefit Riders: A life insurance policy with an LTC rider provides the client the ability to use their life insurance to pay for long-term care expenses. Any portion not used for care is passed along to the beneficiary at the time of the insured’s death. These riders may appeal to younger clients who prefer a less expensive 2-in-1 policy rather than purchasing both life and LTC policies separately.
- Annuities with LTC Benefits: These products are similar to Asset-Based plans, but with the added benefit of providing coverage to those who may not be insurable.
WE'VE GOT YOU COVERED
Our insurance specialists provide advisors with the resources and knowledge to proactively engage their clients. At your request, we can even work with your client directly. Long-term care isn’t an easy subject to broach, but we’ll help you start the conversation as well as guide you through the plans that are most appropriate for your clients. Our goal is to educate advisors on how to protect, and advise real people for real situations.
RELATED RESOURCES
- GBS LTC Questionnaire
- LTC Planning Guide - Nationwide
- Chronic Illness vs. LTC Riders - AIG
- Introduction to LTC Riders on UL - John Hancock
1 Genworth 2015 Cost of Care Survey, April 2015