I realize LTC is not a topic you relish discussing. Hopefully your clients won’t need such care, and if they do perhaps they can pay for it out of cash flow (at possibly $100,000 a year). However, if the topic comes up, here are some ideas and strategies that might help.
Let’s say you have a client whose loved one suddenly needs LTC. This relative or loved one does not have much money and they wonder what, if anything you can do to help. Knowing that Medicaid requires spending down to impoverishment and cashing in life insurance, you might suggest they move some money into an irrevocable burial trust so that nobody needs to pay this bill for them. They can even set these trusts up and fund them for children, and if done correctly, is not a divestment. It will not disqualify them for Medicaid and they get to leave funds for family. I can help you with this.
If they have significant funds, but worry they won’t last, there is an immediate annuity that takes (poor) health into account. Someone needing LTC will probably not have the same life expectancy as a healthy person of the same age. By underwriting that poor health, a far better payout can sometimes be produced, allowing them to pay the bills for life and still leave funds for family.
If your client inquires about LTC insurance for themselves, and it’s not your main area of expertise, consider working with someone who does nothing but this. There still are some lifetime benefit policies available, with 5% compound inflation. There are even options with a single premium available. Prices vary drastically from one company to another and knowing which ones like which ages and don’t mind which health concerns can make a huge price difference. If someone is declined, it does not mean they can’t get coverage. Perhaps they did not apply with the most appropriate company for their age and health – there are still quite a number of insurers out there. Knowing which ones accept which health concerns lets you help most any client.
There is even a partial return of premium, single funded, so that if your client never needs care, a good part of that single premium is refunded at death. The best news is that numerous options exist. No matter the situation, there may be something that can be done to help. It’s never too late to inquire.
Keep up by reading this blog or go to www.TheLongTermCareGuy.com for more info.