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How Long-Term Care protects your legacy.  Long-Term Care Part 3 of 3…


As we wrap-up our series on Long-Term Care this November, I would like to thank those of you who have come forward with questions and real-life situations in which you wish Long-Term Care would have been brought to your attention sooner.

As we discussed in a prior article, the costs of long-term care (LTC) can erode the money and assets you may have accumulated for retirement.

The damaging effects of a lack of long-term care are very real. And they are happening far too often.

Erin, our new marketing strategist at Optic Financial, has literally watched her 93 year-old grandfather’s assets dwindle from 1.6 million dollars to 550,000 dollars over the past 9 years because he continues to live and need care.

Her family’s inheritance will be greatly diminished by the time he passes, if it’s not gone altogether. Her grandfather wanted to share a legacy and provide his grandchildren with a leg up in life, but instead, he’s heartbroken to watch his accounts dwindle. Due to his age and his fragile health, at this point, he is not insurable for Long-Term Care.

So, when you think about a scenario like that, would you ever consider not insuring your home or your car?

Never. There would be too much risk, and that risk would cause you sleepless nights, lost production, and worry in other areas of your life. We all know that if you didn’t insure your home or your car and there was a loss, it would be up to you to pay for it.

Most of us would rather transfer that payout, that risk, to an insurance agency, so we protect ourselves with insurance against risks like a car accident or house fire.

Having LTC insurance in your portfolio is way to pay for some, or all, of the costs that could be incurred for care…and, it can protect your assets and your legacy.

What does this mean?

LTC insurance is a way for you to protect your assets. I prefer to think of it as Asset Care Insurance.

Instead of spending down your personal assets for long-term care, you can shift those costs and that risk to a life insurance company by purchasing Asset Care.

With Asset Care, you or your family will always get more.

There are some smart reasons as to why you would want Asset Care as part of your overall financial plan.

Today, there are ways to reduce the cost of long-term care insurance and own a plan that will be there for you or your family even if you never need the care. Hence…Asset Care.

What would having Asset Care mean to you and your family?

  • You can protect your assets from being eroded by the costs of long-term care. If care is needed, the death benefit of your Asset Care policy can be accessed tax-free.
  • You can have the option to continue care for a lifetime, not just a few years.
  • You can also have two people on one contract. For example, a husband and wife could combine a policy.
  • These special types of Asset Care policies have guaranteed cash value.

Not protecting your potential ill health is a massive risk to your savings and to your retirement. Protecting for the need of long-term care can keep your savings and your retirement safe. Just as it is smart to plan for retirement, it’s smart to plan now for long-term care. Here are some things you should know:

  • Your age and your health are important factors that determine the cost of long-term care insurance. The sooner you purchase long-term care insurance, the lower the cost.
  • When possible, buy before age 65; avoid the higher cost of waiting.
  • At a younger age, you can lock in good health ratings that give you more savings.
  • Even if your health declines, once you ‘lock in’ preferred health ratings today, your rates and discounts won’t change, even if your health does.

Protection options can help you protect your retirement savings from the cost of long term care, while providing other valuable features you may not be aware of. With this solution, you have benefits, if and when you need them, to help pay for the kind of care you desire without becoming a burden to your family.

If you change your mind about using the Asset Care, or if your life plans change, you may be able to get money back through guaranteed cash value or accumulation value.

If you are lucky enough to never need long-term care, your Asset Care provides a legacy to pass to your heirs.

There are many ways that you can pay for Asset Care. Some of these options include using an IRA or 401(k), Mutual Funds, an existing annuity, or existing life insurance. And yes, you can use a CD or a portion of your savings.

You can choose a one-time-only premium payment, or choose guaranteed annual premiums that can never increase.

In Summary

  • Joint protection for you and your spouse is available too in a single contract!
  • If you don’t need care and the death benefit isn’t used for care, the death benefit can pass to your heirs tax free!
  • Asset Care is a fantastic way to plan for your future. If you don’t use it, you don’t lose it. Asset Care is also a fantastic way for you to leave a legacy if you don’t end up using the care.

I invite you to learn more and see what Asset Care can do for you. Schedule an appointment here (ScheduleOnce).

To see where you stand, take the Long Term Care assessment here. Discover what is possible for you and your loved ones.


Barry Brooksby