Protection Products

Is LTC Really That Expensive?


Protection

Let’s put things in perspective first:  according to Genworth’s Cost of Care Survey for 2018, the annual national median cost of care in 2018 ranged anywhere from $18,720 to $100,000, depending on your needs. Breaking that down to monthly costs, that’s between from $1,560 - $8,364 a month to provide care for you or your loved one.

Where is this money coming from? How does this affect your portfolio? More importantly, if you need care for an extended period, how much will be left for your spouse to live on (or even fund their own care)?

Annual National Median Costs 2018

Homemaker Services:1 $48,048
Home Health Aide:1 $50,336

Adult Day Health Care:2 $18,720

Assisted Living Facility:3 $48,000

Semi-Private Room in a Nursing Home:4 $89,297
Private Room in a Nursing Home:4 $100,375

 

Now, let’s look at the cost of having a plan in place. If a 55-year-old couple were to purchase a $4500 monthly benefit, three-year policy adding inflation, the cost per month is just under $300. That would total $108k if paid for 30 years. Yes, $108 thousand sounds like a lot, but is it?

Since we wisely added inflation to the policy, our pool of money has grown to $393,216 per person!We spent $108k over 30 years to get $786,432 to spend on care.

The truth behind the numbers is simple. It’s more expensive NOT to have a LTC plan in place.

Don’t trust these numbers? I’ll get you your numbers, specific to you. #just ask

 

Genworth 2018 Cost of Care Survey, conducted by CareScout®, June 2018

1 Based on 44 hours per week by 52 weeks

2 Based on 5 days per week by 52 weeks

3 Based on 12 months of care, private, one bedroom

4 Based on 365 days of care

Long-Term Care cost of care

How You Can Turn Tax Reform Savings Into Income


Protection

Tax season is here. And with tax reform in place, this season could be a game-changer. What do I mean? Well, your clients could be saving thousands of dollars on their income taxes. Now’s your chance to help them use it wisely. 

 

Take a look at the chart below. I’m not a tax expert, but I estimate a married couple with a combined income of $250,000 and two kids could save more than $7,000 with the new tax code. 

TAX-REFORM-BILL-INFOGRAPHIC.jpg (1)

What if you took that money and used it to purchase a tax-advantaged financial instrument? 

 

Cash value life insurance can not only give clients protection during their working years, but it can also create a supplemental, tax-free retirement income stream for their future. It may sound complicated, but it’s not. You’re simply taking one tax advantage to create another – and your clients don’t lose any net household income. You can watch a great video  that better explains the concept. 

 

There are other uses too. Today’s insurance products offer flexibility and coverage for things like long-term care or chronic illness. If you missed it, watch the replay of the webinar  we did on this topic. 

 

Bottom line: No matter their situation, you owe it to your clients to explore the possibilities. Before they cash out their tax savings, you should check out the options available with life insurance. Give me a call – no matter the question, no matter the need. I’m here to help. 

 

For financial professional use only. Calculations based on married couple with two children, living in Texas (with no income taxes), paying $11,157 in mortgage interest. Actual tax savings will vary. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Ash Brokerage and its representatives do not provide tax or legal advice. Consult a tax or legal professional.

Tax Reform Life Insurance Retirement Living Benefits Long-Term Care

No Scare Tactics: Your Clients Need Insurance


Protection

Friday the 13th is a few days away, but now is not the time to panic. On this day that’s so often associated with bad luck and superstition, it would be easy to focus on sad stories where the lack of insurance protection exposed consumers and their families to overwhelming risk.

Instead, let’s talk about how diligent advisors can collaborate with insurance specialists at Ash Brokerage to help clients protect their hard-earned assets. Insurance should be sold on need, not scare tactics, so let's take a look at some typical consumer insurance needs. 

 

Everyone Needs

  • Level Term Life – During working years, life insurance helps families protect against loss of income from premature death so the mortgage can be paid, kids can go to college, and retirement plans can be completed.

  • Disability – Whether attained at work or individually, a disability contract is a key tool in protecting your client’s income if an accident or health event prevents them from working.

 

Many Need

  • Long-Term Care – Modern asset-based products allow clients to protect their assets from the risk of an extended health even without the risk of rising rates or loss of benefits if they aren’t used.

  • Permanent Life – Many high-income earners are frustrated with how much they can save for retirement on a qualified basis. Besides offering unmatched leverage at death, permanent insurance offers many Roth-like qualities to help people save tax-efficiently now and access their money on a tax-friendly basis later. 

 

Some Need

  • Business Protection – Business owners often spend more time working in their business versus on it. As a result, they rarely have updated or funded buy-sell agreements, plans to retain key employees, or documented exit strategies. An insurance specialist can help put all of them in motion. 

 

About the Author

As executive vice president of life sales distribution, Bob Klein is responsible for all of Ash Brokerage’s life, long-term care and disability income insurance sales. He is driven by his desire to help others get the most out of their natural gifts, and he gets the most satisfaction from seeing others grow and succeed.

 

Life Insurance Long-Term Care Business Owners Disability Needs