Long Term Care Insurance
Is an Asset Based Long Term Care Policy Right for You?
Instead of a traditional Long Term Care policy consider an Asset-Based policy.
Asset based long term care policies combine long term care insurance with either an annuity or Life insurance policy.
Both traditional and asset-based long term care policies offer similar long term care benefits. Where they differ is in the underlying policy structure, with asset-based plans built around a life insurance model and traditional plans built as a "stand-alone" pure long term care benefit.
It’s Different form Life insurance with a LTC Rider
The distinction from a Life insurance policy with a Long Term Care rider is a focus on providing life insurance with limited protection from a long term care event. Similar to an accelerated benefit rider, a portion of the cash value can be used for long term care.
In contrast and Asset- Based policies leverag your premium dollars for Long Term Care, while protecting your premium if you never need the long term care benefits.
Is an Asset-Based Long Term Care policy right for you?
What if you never need Long Term Care?
Asset-based policies give you the option to get your money back or to pass money onto your heirs if you die before needing long term care.
Guaranteed access to your premium dollars paid
• Death Benefit - Payable tax-free to your beneficiary
• Surrender Provision - Cancel your policy for a return of premium.
Health Qualifying Concerns
Medically qualifying for Traditional long term care policies can be more challenging compared to Asset-Based long term care.
Your Long Term Care Specialist can pre-qualify you if you are concerned that a health issue might make it challenging for you to health qualify.
Rate increase concerns
Guaranteed Premiums - Rates will never increase
Traditional Long Term Care has had rate increases in recent years and there is a potential for rate increase in the future. You FPS Specialist can help guide to policies that limit your risk for rate increases.
Asset-Based long term care policies offer protection and guarantees against future rate increases.
Your State might limit your access to Asset-Based policies
Asset-Based Long Term Care policies are a great options for some folks, but these types of policies are not available in all States. Your FPS specialist will provide guidance on which policies are available in each State.
Funding Traditional vs Asset-Based
A traditional LTC plan will offer the lowest annual cost. Owing to its recurring premiums, clients typically pay for it out of investment returns or interest on capital.
Asset-based plans are generally funded in a single payment by repositioning an existing low-yield asset,resulting in net-zero cost.