One thing that makes Asset Care unique in the Asset Based long term care space is its funding flexibility. One of the more “famous” approaches is utilizing the only turnkey solution for funding using qualified money. That’s not what I am going to discuss today.
As you are hopefully aware, Asset Care accommodates both single premium and recurring premium strategies. And, the recurring premium can be a 5-pay, 10-pay, 20-pay, or to age 95.
What is often overlooked is the ability to combine both the single premium and recurring premium funding. This is something that Asset Care has offered for decades and continues to be a viable strategy to use with clients where an adequate LTC benefit cannot be generated from:
- A single premium alone, or
- Recurring premiums alone, or
OR
- Has small cash value life insurance policy, or
- Has CDs maturing, or
- Is looking for a creative way to leverage their money into the future.
We have a couple who are in their mid 60s with the kids finally flying out of the nest. They have a past experience with long term care in their family unit and recognize both the cost and obligation that providing care requires. They have decided that an unlimited benefit is what they should and are looking for premium options.
Originally, the Asset Care 2024policy was presented with $10,000 of monthly benefit per person with an 2% inflation for the first 20 policy years. The annual premium was $25,555 to age 95.
This was palatable but not ideal. So, they investigate what a drop-in could achieve while maintaining annual premiums as planned.
Dropping in $100,000; the annual premium is reduced to $17,689.
And, remember, the waiver of premium waives the premium for the duration of the claim. That claim can be 2 months, 2 years, or 2 decades. And, with a joint policy, a claim for one spouse will waive the premiums for the whole of the policy until that claim is completed.
Ultimately, long term care planning need to provide the client with solutions that they need on their terms. The age of the cookie cutter solution has come to an end and planning flexibility is paramount.
For your next long term care conversation, consider looking at what Asset Care 2024 provide.
Learn more about how OneAmerica can help, please contact my internal Kelley Hilliard at kelleyhilliard.isp@oneamerica.com or call her at (844) 623-4251.
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