Individuals
HOW CAN I GUARANTEE THAT THE ASSETS I PLAN TO LEAVE TO MY FAMILY WON’T BE SQUANDERED PAYING THE COSTS OF LONG TERM HEALTH CARE?
A retirement and investment plan without long term health care protection is a hope and a prayer plan. The reason: the costs of extended health care –from conditions such as strokes, serious accidents or Alzheimer’s – can run into the millions of dollars and decimate retirement income with disastrous results to the family.
For example, consider the effect of 24/7 health care on these qualified plan income portfolios:
| Income portfolio | $1,000,000 | $3,000,000 | $5,000,000 |
| After tax income @4% | $ 40,000 | $ 120,000 | $ 200,000 |
| Cost of care(1) | $ 175,000 | $ 175,000 | $ 175,000 |
| Assets remaining in 8 years(2)* | 0 |
$ $716,000 | $2,716,000 |
- 24/7 home care at $20 per hour. See MetLife 2008 Mature Market Studies on the costs of long term health care.
- Assumes liquidation of qualified plan assets in order to maintain the after tax income cash flow in a 35% bracket.
* The average length of Alzheimer’s is 8 years.
In the above example, the ultimate payer of long term health care costs is not the person who needs care – it is their families because:
- If costs are paid from income the family will have to change their lifestyle and reduce their standard of living.
- If costs are paid by liquidating assets there will be a reduced legacy for the family.
But now an insurance company, rather than your family, can pay the costs of extended health care using new insurance and product concepts - including a policy that will refund 100% your premiums to your family if you never need care.
To help you understand these new concepts we have prepared a new report that will answer these questions:
- How can I convert the cost of long term care insurance to interest?
- How can I - as a sole proprietor, a partner, a member of an LLC, or a shareholder employee in a corporation - buy long term care insurance with tax deductible dollars?
- How can I use a capital transfer plan to buy long term care insurance rather than paying premiums from income?
- How can I reduce estate taxes and transfer wealth using long term care insurance?
- How can I structure long term care insurance to pay me an annual tax free income as well as providing million dollar insurance benefits?
- How can I - as a shareholder in a “C” corporation - use long term care insurance to reduce my personal estate taxes, reduce my corporate income taxes, transfer corporate assets to my family, and provide liquidity?
To get the report, New Concepts in Tax-Advantaged Long Term Care Insurance click here.
