Traditional vs Asset Based Long-Term Care Insurance

Hi everyone, Marty Becker here, owner and founder of Atlas Financial Strategies, where we specialize in long-term care protection, guaranteed retirement income, and asset protection. Today, I want to share with you a crucial aspect of financial planning that often gets overlooked - long-term care insurance.

Understanding Long-Term Care Insurance: Traditional vs. Asset-Based

Let's start with the basics. Long-term care insurance serves as a safety net, providing financial assistance when you need care in a skilled nursing facility or assistance with daily living activities (ADLs). These ADLs include bathing, toileting, ambulating, grooming, and feeding. Additionally, long-term care insurance may cover services like adult daycare and Alzheimer's care.

There are two primary types of long-term care insurance: traditional and asset-based. Let's explore the differences.

Traditional Long-Term Care Insurance: Pros and Cons

Traditional long-term care insurance operates like a term policy, where you pay a monthly premium for a predefined benefit. Some pros of this type of coverage include lower initial costs for young and healthy individuals, the ability to customize coverage options, and the peace of mind of having financial protection. However, as you age, premiums may increase, leading to difficult decisions on whether to pay more, decrease coverage, or potentially drop the policy altogether, losing all invested funds. Moreover, strict underwriting criteria can make qualifying challenging for some individuals.

Asset-Based Long-Term Care Insurance: The Comprehensive Solution

Asset-based long-term care insurance offers a more comprehensive and flexible approach. You have the freedom to custom-design your policy to cover various care options, from in-home care to adult daycare and more. Couples can own a joint policy with separate benefits, ensuring personalized care solutions. One significant advantage is that even if you have preexisting health conditions, you can still qualify for coverage.

Another key benefit is the option to fund the policy with a lump sum or through monthly premiums, catering to individual financial preferences. The best part? Once your premium payment is set, it's guaranteed never to increase, providing peace of mind for the long haul. Furthermore, if you never need to use the benefit, you can access the money for other needs or pass it on to your beneficiaries.

Choosing Wisely: Traditional vs. Asset-Based Long-Term Care

When deciding between the two options, it's essential to consider your long-term care needs, financial goals, and risk tolerance. While asset-based long-term care may require higher upfront costs, its benefits of guaranteed premiums and potential for liquidity make it an attractive choice for many.

Conclusion: Take Control of Your Long-Term Care Future

I hope this overview has shed light on the difference between traditional and asset-based long-term care insurance. Remember, long-term care insurance goes beyond just nursing home coverage. It provides a safety net for various care options and ensures you maintain control over your future.

I highly encourage you to watch the full video series, where I delve even deeper into this important topic. Afterward, don't hesitate to reach out to me to schedule a short phone call. Let's design a custom solution that suits your unique needs, providing you with the peace of mind and financial security you deserve.

Thank you for your time, and I'm looking forward to helping you secure your future.

Best regards,

Marty Becker
Owner and Founder, Atlas Financial Strategies