Why Asset-Based Long Term Care
Approximately 10,000 people are turning 65 in America every day ... As we enter or approach a new life stage, our sources of income change. When we enter this life stage these sources of income come down to our savings and Social Security.
The way we think about our money and how we handle it changes from accumulation to lifetime income. Will we have enough money to live and how do we protect what we have? To complicate things even more, we must face the reality that after turning 65, we have a 70% chance of needing some form of long term care. Needless to say, a few years of long term care can wipe out thousands of dollars of our savings, reducing our income substantially or wiping it our altogether.
So, how do we solve this potential problem? Twenty years ago, there were scores of insurance companies offering stand-alone LTC policies. Today, there are a handful. The insurance industry’s underestimate of LTC claims has created two scenarios: Companies have rapidly exited the LTC space and existing policy holders have experienced rapidly increasing premiums.
The questions families really need to ask themselves is “What long-term care protection do I get for my money with LTC insurance?” and “What if I don’t need long-term care? What is the best way to save for our health care and preserve our assets if we do not need it?
Hybrid or Asset-Based long-term care policies may be better for them than a stand-alone policy. Asset-Based long term care policies provide your clients with long term care coverage if they need it, and allow them to keep their assets as a legacy to their family if they don’t.
Asset-Based policies work by leveraging existing assets to help pay for long term care expenses only if they are needed. Asset-Based products are marketed as annuities and as life insurance. Existing assets can be used to fund the life insurance or annuities. If care is not needed or if the policyholder dies, assets are transferred to heirs, creating a win-win for your clients.
Consult your MarketMaxx Sales Vice President to learn more about Asset- Based LTC products and how they can fill a void in your annuity and life planning with your clients.
OneAmerica Joint Life...
Asset-Care is the only life-based LTC product available that can provide protection for two people from the same policy. In fact, joint life Asset-Care is so unique, it has been awarded a U.S. patent.
With joint life Asset-Care, your clients can have access to a shared pool of long-term care benefits obtained with one premium, rather than two premiums for separate policies. And because of Asset-Care’s second to die whole life structure, the shared benefit is larger than they would otherwise have from a single life policy. With underwriting flexibility and reduced cost of insurance charges, joint life Asset-care may be the perfect solution to your client’s LTC needs.