Advisors are wise to look at a variety of solutions for protecting client assets from LTC expenses. But every alternative has its own advantages and distinct purposes. Do you know which option is best for your clients’ LTC needs, and how to fully utilize each one to better serve them?
1. Traditional LTC Protection
- Generally much lower premium outlay than other methods
- More comprehensive benefits and more features
- Waiver of premium on claim
- Must pay premium for life; premium is an expense if no claims
- Premiums can increase
2. Traditional LTC Protection with an ROP Rider
- Still less premium outlay than asset-based LTC plans
- Premiums less claims paid are returned at death
3. Universal Life with Guaranteed DB and Acceleration of DB for LTC
- Plans vary, but some allow for full acceleration of the DB for LTC
- If LTC is not needed, plan pays DB
- Generally lifetime pay with little or no CSV
- Premiums are very high to provide meaningful LTC benefits
- Many have high deductibles
4. Universal Life with LTC Rider
- Some have limited premium payment period (10 years)
- Full money back guarantee
- LTC benefits can greatly exceed the initial DB with LTC rider
- A residual DB is paid even if LTC benefits are exhausted
- Premiums are high for meaningful LTC benefits
5. Annuity with LTC Rider
- Easiest to get from underwriting standpoint
- Annuity earns tax-deferred interest
- Annuity value can double or triple to be paid out as LTC expense reimbursement
Questions? Interested in learning more? Contact Agent Link’s dedicated LTC Broker Rep!
Bruce Dawkins
800-960-1371 x1303
