LegacyCare Pro News - February Edition

Today, we're going to take you from the Atlantic (North Carolina) to the Pacific (California). I want to show you how LegacyCare Pro can save your clients "hundreds of thousands of dollars" on their Long-Term Care & add "hundreds of thousands of dollars" to their Legacy planning.

Before we get started, "What if your client needs care, they live in North Carolina and daughter lives in California?" Have you discussed how they will handle care with their daughter living so far away?"

The key to a good, no a great Long-Term Care & Legacy plan is being able to see the plan from start to finish. An issue our industry has had from the beginning of offering Long-Term Care Insurance plans. We all couldn't see how the plan worked beyond premiums. Speaking of premiums, in order to make these plans work better we have to address the their plans before your clients have health issues or a parent is diagnosed with dementia.

Yes, I know that carriers haven't helped with their premium rate increases. However, we haven't had a great way to track those plans and be able to come up with the best way for those existing Long-Term Care Insurance plans to work with the client's Portfolio. Well, until now.

Then, there's the dollars clients spend above what the Long-Term Care policy pays out. A piece we totally missed. Unfortunately, too many Advisors are getting caught up in "return of premiums" and still forgetting that their clients have a 70% chance of one of them needing care. The last time I checked facilities and agencies don't return money they're paid to take care of someone. This makes more families lean on family members for care support. Where's the plan to "discount" these supplementing dollars or pay family members? Essentially, returning these dollars to your clients' heirs.

Hint: This last piece would have allowed us to keep the existing LTCI policies stronger. It would've made future care expenditures easier on Cash Flow and created a discounting of future supplementing dollars. Lastly, it would have secured a Legacy piece for the clients as they spend down Tax-Qualified dollars.

First, can your clients take out the amount necessary to create a 80/20 plan for Nursing Home out of the Market? If not, then you and your clients need to think about how you'll utilize these funds over their lifetime to create a plan. Otherwise, you'll make their ability to have access to Home Health Care even harder.

The examples below will give you a good look at some of the issues of Long-Term Care & Legacy planning and how our software points them out:

• If you want a Death Benefit, do you want to make it larger to offset claims and if they don't go on claim you look even better? Don't pay attention to the product's Death Benefit, pay attention to the plan's Death Benefit.
• Pay attention to the difference in benefits available with all three plan designs. Using the same commitment. Which plan is easier on Cash Flow? (We have to remind clients those dollars are still there, if they choose option B or C)
• Additional funding may not help the Asset-based Long-Term Care plans as much as the other plans, especially if your clients are healthier or wealthier. These additional funds will be need to be set aside for future supplementing. Look at benefits available with all three plans.
• With stronger LTCI benefits, you may be able to start or put more funding towards their Legacy plans. Don't wait to age 70 to have their Legacy conversation...just change funding when they get there.
• In our designs, the Death Benefit is protected. This allows your clients children to spend the money necessary for the most desired level of care - Home Health Care. This can pay a child or be there to offset taxes on any remaining Tax-Qualified accounts. Do you want to delay going into that Death Benefit?
• All Care events will most likely take your clients spending above their Cash Flow. That's why we need to prepare them for this level of spending or show them ways to reimbursement this spending to their spouse or family afterwards.

There's a fallacy in any Long-Term Care plan design...including ours if we do not track them. Clients and their families will pay attention to what the policy pays out, not what's available in the plan.

That's why you need to create a CARE FUND and track the performance of the funds inside that portion of their Portfolio as well as how the Insurance pieces work with those funds. It doesn't matter which products you use as long as you can prove your intent and show that you presented your clients other options.

If you want to see how system and software works, then start with our Long-Term Care & Legacy Needs Analysis. DM for a personalized copy. Secondly, we have summaries for almost every major city in the country. DM for summaries in your city.

Version 1 - Stronger Benefits for LTCI and Survivorship Life

Version 2 - Lesser Benefits for LTCI, Life with LTC rider and Survivorship Life

If your clients want Home Health Care, then it will NOT be a one product plan, you'll need to show them their options using these two different angles.

Feel free to reach out for a demo of the software in your area or allow us to run a case through the software for you. We do not care what BD or RIA resource you use. We are looking to test our software with Advisors and with all levels of clients. ~ Barclay?