According to the U.S. Department of Health and Human Services “Nearly 70% of 65-year old’s will need some form of long-term care in their lifetimes.” (August 2, 2022)
Could it be possible to fund potential long term care costs WITHOUT ongoing payments or losing access to your principal?
The answer is a resounding YES, and we believe the two asset-based strategies that have evolved in the 1990’s and in recent years to be superior alternatives to that of paying formidable, and often ever expanding annual premiums throughout the entirety of your retirement.
As the costs and premiums for long term care continue to soar, Quantum Solutions is exceptionally enthusiastic to share two highly evolved Long Term Care (LTC) solutions that meet ALL the criteria on the following Long Term Care wish list:
- NO out of pocket LTC premium payments
- Substantial levels of LTC coverage
- No limitations relative to the LTC provider(s) you choose
- Allow your principal and your Long Term Care coverage amount to continue to grow until needed for LTC (and tax deferred as well)
- Provide you continued access to your principal and earnings throughout your lifetime, if needed*
- Ensure your principal and earnings will be paid to your beneficiaries in the event you didn’t need to access them for LTC or other purposes
- NO Federal income taxes on withdrawals to reimburse LTC costs
Our clients’ have found this evolved LTC solution especially attractive.
With Guaranteed Fixed Rate Annuities as the chassis (see Guaranteed Interest Solutions page), clients select the amount of their funding, and these hybrid solutions will pay up to 2, 3, or 4 times the initial and growing policy values in LTC benefits if the individual or couple named in the policy ever experience LTC needs.
The underwriting processes are minimal, the competitive interest rates (net of a minor reduction for the LTC coverage) help your account and LTC benefit values continue to grow over time, the ongoing access to your principal* (should such needs arise), and the payment of the full policy value to your heirs upon your demise if the LTC benefits have not been utilized combine to make this an especially attractive, no out of pocket premium LTC solution.
This hybrid LTC solution has been of benefit to our clients since the late 1980’s, and is available in expanded versions today.
It’s chassis is a cash value life insurance policy, the death benefit of which can be used for LTC costs if such needs arise during the lifetime(s) of the individual or couple named in the policy.
Like the prior solution, clients are welcome to choose the funding amount they desire, and they can access the cash value during the ownership period*. Should they not need LTC, the death benefit will be paid to their beneficiaries upon their demise.
This hybrid solution, which includes a more thorough underwriting process, can also be helpful as an estate planning strategy.
As the cost of LTC in retirement can literally wipe out the entirety of an individual’s or couple’s lifetime savings, it is prudent to consider addressing the risk of your possible LTC needs.
Fortunately, the innovative, hybrid nature of the solutions Quantum continually identifies allow you to address these needs in multi-faceted manners beyond any that have existed before.
The proverbial “icing on the cake” is that tax laws now allow withdrawals from either of these solutions for LTC expenses to NOT be subject to Federal income taxes; this substantively further expands the economic benefit of either of these LTC-focused strategies.
