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Asset Management for Long Term Care

According to AARP, 90% of Seniors would prefer to be cared for in their homes. What have seniors done to make sure this happens? Estate planning specialist David T. Phillips joins Suzanne to talk about long term care strategies to make sure you have care in your later life.

The solution to the long-term care crisis is a relatively new approach to long-term care insurance, known as leveraged care solutions, a.k.a. asset-based care plans. It’s viable so long as you have the means. The concept is simple: With a leveraged care solution, you reposition an asset today from your left pocket to your right pocket, and it immediately it is valued three times greater than the sum you transferred. You leveraged each deposited dollar at a minimum of three times. If you don’t trigger the benefit, your family inherits the money you transferred.

David explains the three types of Leveraged Care Solutions: the Long Term Care Annuity, the Life Legacy/LTC Combo Strategy, and the Return of Premium LTC plan.

David says, “There’s some options that you can have. You can have an annuity option, that as the annuity grows, so does the long term care benefit. So instead of being three times, it could be four times or five times as the annuity grows. If you never use the long term care benefit, the money that you transferred into it goes to your beneficiaries. So it’s not like it’s money down a rat hole that you’re never going to see. Your kids are gonna actually inherit that money.

“The second option is called the life legacy option, where you use a life insurance policy. And let’s say the life insurance policy is a half a million dollar policy, and you take 2% of that, and you use that for your care per month for 50 months. So 2% of $500,000 would be $10,000 a month that would be used for your care, tax free. All of these benefits, by the way, are income tax free. And that benefit then goes for your care. Let’s say you used it for 10 months. So 10,000 times 1,000,000, the rest of the money, the 400,000 from that 500,000 goes to your kids, your beneficiary.”

Answers for Elders listeners can receive a free copy of David’s special report Leveraged Care Solutions: Answers to Today’s Long-Term Care Crisis, and other free Special Reports, when you subscribe to the “Generational Wealth Strategies” newsletter. Answers for Elders listeners can subscribe at a discounted fee of $77 a year, a $172 savings. Subscribe here to get the discounted rate: https://www.generationalwealthnewsletter.com/offer/gws-answers-for-elders-2

David’s office is at 888-892-1102, or visit his Estate Planning Specialists website at https://epmez.com/.

Learn more:
* David T. Phillips: https://epmez.com/our-team
* Generational Wealth Strategies newsletter: https://www.generationalwealthnewsletter.com/
* The Vitality Revolution podcast series: https://answersforelders.com/vitality-revolution/
* Humana: https://www.humana.com/
* Answers for Elders: https://answersforelders.com/welcome-to-answers-for-elders/

Hear more podcasts about financial wellness at https://answersforelders.com/financial-wellness

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