Friday, March 31, 2023
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

How Asset-Based Long-Term Care Helps Protect Dependents

by C2P Enterprises
October 7, 2022
in Finance
Reading Time: 3 mins read
A A
0
Home Finance
Share on FacebookShare on Twitter


How Can Asset-Based Long-Term Care Unburden Clients with Multiple Dependents at Various Ages?

Asset-based long-term care (LTC) is a type of life insurance policy with tax-free long-term care benefits designed to protect the client as their age and health deteriorate in retirement. This lets the client cash in on their death benefits to cover medical needs in the later stages of life.

Asset-based LTC is a solid solution for financial advisors to include in the client’s holistic financial plan because it often allows the client to choose their own caregiver, like an adult child or a spouse.

Taking Care of Parents While Still Caring for Kids

Asset-based LTC relieves some of the financial pressure of aging or caring for a loved one in their old age. This helps to reassure the client and their family that their long-term needs are already taken care of.

As science evolves and humans live longer, more families are living between two worlds. Often adult children are responsible for their aging parents while they still have kids of their own living in the home. There are solutions for financial advisors who have these types of clients.

Taking Care of Their Spouse or Their Spouse Caring for Them

Asset-based LTC provides peace of mind to the client and their loved ones. It gives the family more freedom to choose what’s right for them. Whether a spouse or adult child acts as the sole caregiver or the family decides to pay for care, LTC can help ease the financial burden.

Some asset-based long-term care plans allow benefits to be paid if either spouse triggers the policy in their comprehensive financial plan.

What is the Difference Between Traditional LTC and Asset-Based Long-Term Care?

There are a lot of similarities between the benefits provided by asset-based long-term care and traditional LTC in a comprehensive financial plan.

Asset-based LTC policies are structured around a life insurance model. So, if the client never uses it, the funds will be transferred tax-free to their beneficiaries after death.

Even if they never need to touch it, the accumulated value of the account will go into the total financial legacy they leave to their heirs. Asset-based LTC premiums are typically higher than traditional rates because of the guaranteed benefit payment.

However, traditional LTC plans follow a use it or lose it method. This allows them to be more affordable as not everyone will be guaranteed a payout, only those who need LTC services.

Additionally, traditional LTC often requires the client to hire a medical professional to act as their caregiver rather than a trusted family member.

Help Clients Understand the Benefits of a Health Savings Account

Using a health savings account as part of the overall holistic financial plan can protect your clients if any new medical needs arise in the future. It can also help them prepare for a procedure or expected expenditure like orthodonture or an elective surgery.

There are many solutions for financial advisors to achieve profitable business lines using HSAs. Implementing an HSA into the client’s comprehensive financial plan can help them regardless of their health care needs.

One of the most important benefits of an HSA investment strategy is the triple tax advantage, and it’s never too soon for early retirement tax planning.

How Does Asset-Based Long-Term Care Fit into a Holistic Financial Plan?

Financial advisors can position different products in their clients holistic financial plan based on their long long term goals. These products include:

Help Clients Feel Prepared with the Soon Bucket

Like a health savings account, the first purpose of long-term care in a comprehensive financial plan is to be there if and when the client needs it.

However, they must understand that if they do need it, there will be little or no death benefit remaining as the policy only pays out once. If this is a concern to the client, there are other profitable business lines to consider for their legacy plan.

Boosting Retirement Savings in the Later Bucket

Estimates in 2022 revealed the average couple over the age of 65 requires about $315,000 for health care costs in retirement. So, you need to create space in the client’s comprehensive financial plan for health care expenses.

Asset-based LTC funds can be used for things like home health aides, living expenses, nursing homes, medical equipment, funeral expenses, and burial costs.

To learn about more solutions for financial advisors or profitable business lines within a holistic financial plan, book a complimentary call with one of our business development representatives today!

Originally published on C2P Enterprises.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Source link

Tags: AssetBasedCareDependentshelpsLongTermProtect
Previous Post

Titan sees 18% sales growth in September quarter

Next Post

Why The EU Will Sanction Russian Crypto Transactions

Related Posts

Core PCE up 0.3%, less than expected

by Euro Times
March 31, 2023
0

An inflation gauge the Federal Reserve follows closely rose slightly less than anticipated in February, providing some hope that interest...

private equity firms india: PE funds opting for a locked-box mechanism for high-value transactions

by Euro Times
March 31, 2023
0

Private equity firms in India are increasingly adopting the “locked box” mechanism, particularly in high-value purchases, to protect the value...

My Path to Generational Wealth: ‘Continuously Diversifying’

by NerdWallet
March 31, 2023
0

Not many people run three different businesses while also working a high-stress government job and raising three kids. Whitmore Merrick...

Dow Jones Futures: Nasdaq Tops 12,000 With Inflation Report Due; Big News For Tesla

by Euro Times
March 30, 2023
0

Dow Jones futures were little changed after hours, along with S&P 500 futures and Nasdaq futures, with attention turning to...

boost liquidity, capital, testing By Reuters

by Reuters
March 30, 2023
0

© Reuters. FILE PHOTO: Customers wait in line outside a branch of the Silicon Valley Bank in Wellesley, Massachusetts, U.S.,...

Verizon’s Strong Core Income Ability (NYSE:VZ)

by Index Investing News
March 30, 2023
0

Bruce BennettVerizon Communications Inc. (NYSE:VZ) is a telecommunication conglomerate, one of the largest in the world, with its market capitalization...

Next Post

Why The EU Will Sanction Russian Crypto Transactions

yes bank ceo: Yes Bank gets RBI nod for appointment of Prashant Kumar as MD and CEO

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

China to examine US chipmaker Micron’s products for cybersecurity risks By Reuters

March 31, 2023

Emergency Politics Podcast: Trump Is Indicted

March 31, 2023

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

March 31, 2023

San Francisco Fed leader Daly likely not major player in SVB saga, officials say

March 31, 2023

Russia to Provide Consular Access to Arrested WSJ Journalist

March 31, 2023

Drew Carey made a radio show with AI. Fans weren’t pleased.

March 31, 2023
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

China to examine US chipmaker Micron’s products for cybersecurity risks By Reuters

Emergency Politics Podcast: Trump Is Indicted

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In