With November being LTC Awareness month, it is the perfect time to discuss how LTC and LTC Hybrid products can fit into your clients’ retirement portfolios.
Long Term Care costs are one of the most expensive aspects of retirement/aging, yet, most people do not have a sufficient plan in place to cover these expenses.
Even high earning retirees may say “Well, I’m going to self insure my LTC”, but they may not know an extended Long Term Care event can wipe out millions of their savings
in just a few short years. Considering cognitive care can last well over 10 years, even people who have a few million of net worth can see their funds dwindle quickly, leaving nothing to pass on to their heirs, or leaving them exposed to a lower standard of care than they were expecting.
The main pushback we see when planning for LTC is “LTC is expensive. What if I end up paying all of this money into it, and never need to use it? That money is gone”. That is a fair question to ask, and we have alternatives to this which will help alleviate this concern. Two of our LTC products have LIFETIME BENEFITS. Yes, Lifetime Benefits, which means your client AND THEIR SPOUSE, can NEVER outlive their care. They can go on claim for 25+ years, and never (not ever) outlive it. They will receive care for a long as they qualify for the claim benefit. Also, in the event no care is ever needed, there is a death benefit to the beneficiaries, which allows you to sleep at night knowing 1 of 3 outcomes will happen:
– They will live a long a healthy life, never needing care, and the beneficiaries will receive the death benefit.
– The will go on claim, and receive the funds for care, protecting assets and ensuring loved ones do not have to spend their limited time and resources.
– The policy may be surrendered and the cash value paid out to the policy owner.
Most family members are more than happy to say they will care for a loved one, but in reality, it is too physically and financially exhausting for a family member
to care for a loved one over an extended period of time, especially if the care that is needed is outside of their qualifications to do so.
We encourage you to call us to discuss the options available, and we are more than happy to go over the details of each plan.