Asset Based Long Term Care
Your existing assets can help keep your family financially secure when it comes to the cost of long-term care.
Your dream retirement won’t come true without a plan for long term care.
Innovative Alternatives to Long-Term Care Insurance
Preparing now for your future care, whether it be home health care or a nursing home, can greatly diminish the cost and emotional strain of long-term care.
National Educational Services provides distinct asset-based products that ride on life insurance and annuities and provide LTC benefits if needed. One very beneficial portion of this type of long-term care insurance is that your asset passes to your beneficiaries if you never need care.
This innovative alternative long-term care policy is a great option for many people looking for care options.
Life Insurance with Long-Term Care Benefits
This type of life insurance allows you to use it while you’re alive! It can help pay for in-home care, nursing home care, or other qualified long-term care options. Should you not need care during your lifetime, your death benefit can be passed down to your beneficiaries.
Asset-Based Long-Term Care Using Life Insurance as a Foundation
Your existing assets can help keep your family financially secure when it comes to the cost of long-term care.
How asset-based long term care insurance works:
- Premiums- You can either choose consistent annual premiums or one-time-only premium payment, using existing assets like a CD, savings, or IRA.
- Protection- This life insurance policy will grow at a low tax-deferred interest rate.
- Tax-Free Benefits- If you need to use your life insurance for appropriate long-term care expenses, you won’t pay income tax on it with this type of policy.
- Benefits- Your beneficiaries receive your death benefit, income tax-free if you never use the long-term care benefit or only use a portion of it.
Key Benefits of Life Insurance with Long Term Care
- Premiums stay consistent, as do your benefits.
- Purchase for a single person, or two people. Benefits will be available for both.
- Death benefits go to your beneficiaries if you don’t use them for long-term care.
- If you cannot complete the essential tasks of daily living on your own, your long-term care benefits become available.
- Choose a term policy or a lifetime policy.
- Choose how you receive long term care, whether it be in your home or in a facility.
- Some coverage options may also include hospice care, respite care, caregiver training, and supportive equipment.
Annuities with Long-Term Care Benefits
Fixed annuity can use your assets for long-term care. This value can fund your initial long-term care costs. Once this value is depleted, you can extend your coverage. Don’t forget; your long-term care benefits can be tax-free!
Preparing for Long-Term Care Expenses with Annuities
One option for paying for long-term care insurance is appointing some of the funds you have in your retirement accounts specifically for long-term care. Annuities that combine long-term asset growth with long-term care benefits are an innovative solution for establishing coverage.
What you get with annuities with long-term care:
- One-time-only premium payment can be established using existing assets.
- A guaranteed minimum interest rate allows your value to grow.
- When you use your annuity for long-term care benefits, you’ll pay no income tax (subject to monthly maximum and premiums that have been funded after-tax).
Perks of Annuities with Long-Term Care Benefits
- Premiums stay consistent, as do your benefits
- Purchase for a single person, or two people. Benefits will be available for both
- Death benefits go to your beneficiaries if you don’t use them for long-term care
- If you cannot complete the essential tasks of daily living on your own, your long term care benefits become available
- Choose a term policy or a lifetime policy
- Choose how you receive long term care, whether it be in your home or in a facility.
- Some coverage options may also include hospice care, respite care, caregiver training and supportive equipment
Get a Long term Care quote
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Each person has a unique reason for wanting to acquire Long Term Care coverage. In order to find the policy that best fits your needs, first, determine why you would like a policy to begin with. Some people would like the peace of mind that the maximum amount of Long Term Care coverage provides, while others are looking for coverage that won’t require too high of a budget. In either case, age, income, asset base, and tolerance for financial risk will need to be considered in order to determine what will work best for you. Our highly knowledgeable Long Term Care professionals will be able to provide technical advice and recommendations based on your needs.
Absolutely. If you’re looking to expand your coverage, you will need to be approved again which will require another process of medical underwriting. Once this is completed, your new information will be used to determine your updated premium. If you choose to reduce your benefits, you will not need to undergo medical underwriting again.
When calculating a premium many factors are considered. These include your age and health at the time of application, and your benefit choices. Benefit choices include how much your benefit amount is, your benefit period, and your elimination period. Medical underwriting is the process in which your application is examined, then your premium is determined.
Yes! Any policies that are tax-qualified do have some tax advantages. If you itemize and your total expenses are over 7.5% of your adjusted gross income. In addition, benefit payments are insusceptible to federal taxation and even state taxation in some states. Finally, if your employer provides contributions for LTC premiums they may be 100% tax deductible.
Financial planning has been crucial for you to achieve this goal. Since Long Term Care can be extremely expensive (between $60,000 and $100,000 every year) using some of the interests acquired from your assets for Long Term Care coverage could be a great way to continue planning for your future! The price of Long Term Care continues to rise but National Educational Services is here to help you find the policy that fits your needs.
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Since 1982, National Educational Services has been servicing the financial needs of educational employees.
