Filed Under:Health Insurance, Ltci

The flexible long-term care plan

Image: FreeDigitalPhotos.net

Image: FreeDigitalPhotos.net

It may not be detectible to everyone quite yet, but there’s a seismic shift happening among consumers and their financial professionals when it comes to preparing for long-term care. If you haven’t looked at asset-based long-term care products lately, now is the time.

The long-term care landscape has changed significantly over the last several years. As financial professionals, we are dealing with rate increases from multiple carriers, with several exiting the marketplace altogether. How we respond to these changes and what we present to our clients is going to have a dramatic impact on our ability to help clients prepare for long-term care going forward. We can either become discouraged with the changes that we see before us or we can take positive steps to shore up our clients’ financial future and our industry as a whole.

A flexible approach

The Franklins ended up repositioning $89,000 from their CDs into a joint asset-based long-term care product. This product pays $7,500 per month for qualifying long-term care expenses for up to three years. They also opted to purchase an extension rider, which will give them each $7,500 per month beyond the initial three years for lifetime benefits. The extension rider also contains a 5 percent compound inflation rider. This rider cost the Franklins an additional $3,464 per year and is non-cancelable, meaning the premiums can never be increased. This would give them the unlimited lifetime coverage they desired as well as eliminate the worry that the premiums will become unaffordable when they are in their retirement years.

Featured Video

Most Recent Videos

Prospects not listening to voice mail? Arrange a phone date

Provided by LIFEHEALTHPRO

Redesigning your phone life is more important than finding the “best words” for a voice mail in today’s culture.

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.