The Ostrich Strategy
It works something like this:
This option is:
The easiest to do now
The most painful later
The most expensive
1. PURE LONG-TERM CARE INSURANCE The top 3 REAL options…
3. THE HYBRID OPTION
2. PURE LIFE INSURANCE WITH A LTC OR CHRONIC ILLNESS RIDER
4. LTC ANNUITIES
• Most straightforward solution – Get the most for your dollars in specific long term care protection
• Can be surprisingly affordable
• Specific riders for increasing your benefit over time, and customizing benefit payout.
• If you don’t need end up needing care, the policy doesn’t do anything else for you or your family – no death benefit, no cash value.
• Carrier reserves the right to increase premiums (However rare)
Typically allows 50-75% of the death benefit to be used for LTC needs Some IULs allow 100% access to death benefit, but benefits can fluctuate
Triggered by the same things that trigger LTC insurance
• Makes sure your family is paid no matter how you pass away
• It’s a cost-efficient way to cover this risk and multitask your dollars.
• Guaranteed premiums
• Could be designed to build cash value as well
• May not provide as much care for your dollar specifically for LTC
• Is not as customizable for LTC purposes
• If you use it for care, you will deplete the life insurance benefit for your heirs.
• Makes sure your family is paid no matter how you pass away, and builds cash that can be used for a variety of purposes
• It’s a very effective way to cover this risk and multitask your dollars no matter your situation.
• Guaranteed premiums
• Continuation Rider ensures benefits NEVER run out.
• Will provide lower daily or monthly benefit amount for care for your dollar specifically for LTC, compared to pure LTC ins.
• If you use it for care, you will deplete the life insurance benefit for your heirs. You should plan to have another life insurance policy, ideally.
• Easiest to qualify for
• Has a death benefit
• Puts your money in a safe place where it can grow and contribute to your retirement income needs
• Continuation Rider is available in some situations – ensures benefits NEVER run out.
• No multiplied death benefit
• Limited options and riders
• Limited funding options (usually requires lump sums)
This unique product can be issued same-day. They ask few or no health questions, have no exam, and are designed to cover the immediate final expenses.
Typically up to $35,000 death benefit
Can add children, spouse, and AD&D for very little cost
Can be guaranteed-issue!
Can build cash value
Permanent, guaranteed death benefit and guaranteed level
premiums
1. Tax-free to beneficiaries
2. Can be used for anything – no strings attached
3. Can be fixed, growing, or decreasing
4. Some policies feature “living benefits”
DEATH BENEFIT USES:
1. Income replacement
2. Fund final expenses
3. Debt payoff – Mortgage, Student loans, auto loans…
4. Wealth transfer – Inheritance
5. Key employee/owner replacement expenses
6. Exit strategies
• Typically pays guaranteed 4% (plus dividends for mutual companies or “participating policies”)
• Emergency Fund or any other short-term savings goal
• Retirement supplement (i.e. L.I.R.P)
• Financing source replacement
• Multi-tasking dollars
• Supplement or pay premiums
Go to www.prepared-protected.com
to set up a time at your convenience
