A few days ago on Coffee Break, we discussed using long term care as a funding source for long term care. If you have not had a chance to check it out, please do.
Let’s cut to the chase – too many people get their noses out of joint when they hear me say use qualified money as a funding source for your long term care.
Technically, it can be used to pay for long term care. Maybe not efficiently or in a tax favorable way, but technically it can be used as a means to pay for long term care services. In fact, anything that can be converted into cash can technically be used to pay for long term care services.
When I say that qualified money can be used to fund LTC, I mean LTC premiums.
What OneAmerica has done is create what I call a turnkey approach to paying long term care premiums from qualified money. Qualified money being traditional or rollover IRA, 401k, 403b, etc. – Roth IRA and Roth 401k are not part of this strategy.
If you have not watched this week’s Coffee Break, please do. We explain how the strategy works. Trust me, it will be worth your while.
Another point that I want to make about the OneAmerica strategy is that this is only one approach to utilizing qualified money to pay premiums. But, it is the only turnkey solution where monies flow from the qualified portion of the product into the Asset Care policy. And, remember, this is all outside of the Asset Care plan design.
Let me leave you with this – when discussing long term care insurance protection, always consider the source of the premiums. Do not assume that a client who says they want to “pay as you go” will pay the premium out of cash. They may be paying a premium from a qualified money distribution and you might find a more efficient way to pay the premiums.
One last thing – thanks for taking time for me.
If you want more information about this strategy or wish to discuss a specific case, please contact my internal, Justin Fox. You can contact him at (844) 658-3725 or via email at email@example.com
Of course, you can always reach me via email at firstname.lastname@example.org or at (678) 512-9627.
You must be logged in to post a comment.