The conversation about long-term care can be difficult. Many people have yet to consider the impact it can have on their retirement. Others simply do not want to accept that a time may come when they can no longer live independently. But the truth is nearly 70% of Americans will need long-term care at some point in their lives. Without proper planning, the rising costs of LTC can quickly erode a client’s retirement account and impact the lives of those around them. This often sees a family member become a caretaker.
The Value of SPL
A Single Premium Life policy could be a good solution for clients concerned with LTC costs. Part life insurance and part LTCI, these policies can be used for both death and living benefits. There are a few reasons why an SPL policy might be a good alternative to a traditional LTCI policy. For one, the client avoids paying premiums on an LTCI policy they might not need to use. If they do need long-term care, some SPL policies provide tax-free accelerated benefits for LTC expenses. Any funds remaining in the policy can be passed on as a tax-free death benefit to the client’s heirs.
Some SPL products can even accept qualified retirement account money (401(k), 403(b), etc.) and offer a bonus to help offset the taxes the client pays for taking qualified account distributions, as long as the money is used for qualified LTCI expenses. SPL products with an LTCI feature are not subject to increased premium payments due to rate increases like traditional LTCI policies.
With long-term care costs climbing, concerns over how to cover those expenses are at an all-time high. An SPL policy might offer the perfect solution for clients who would otherwise keep that “safety net” in savings, a CD, or an annuity.
Discussing LTCI Coverage
November is Long-Term Care Insurance Awareness Month. Now is the time to discuss with clients and prospects how LTCI coverage can enhance their retirement portfolio—and even serve as a form of asset protection. To help agents and advisors take advantage of LTCI Awareness Month, IAMS, Inc. has prepared a complimentary LTCI sales kit.
This package includes:
- Pre-approach letters
- National cost-of-care averages for 2023
- A fillable LTC expense financial snapshot
- New social images and post copy
- Concept sheets, turnkey client presentations, and more
Click below to request your LTCI Kit.