LegacyCare Pro News - June Edition

When it comes to giving you a Fiduciary Standard for Long-Term Care & Legacy planning, your current Financial Software is coming up short. Plugging in premiums and reducing benefits without a paper trail is dangerous and most likely won't live up to your clients' expectations...especially, if they want Home Health Care.

Every Advisor who reads today's newsletter has the same problem. You think that projecting Cash Flow models for income vs. premiums is going to be enough. It's not. If your clients most desired level of care is Home Health Care, then the costs will be DOUBLE or even TRIPLE their household income. In many cases, your client's Long-Term Care plan becomes "it is what it is" with no story behind it. That's what most Financial Software packages do for you and your clients.

Cash Flow is "dollar-for-dollar" spending that most folks won't understand. This is why a majority of the Long-Term Care burden will be left up to unpaid family caregivers. This creates unhappy spouses or children who will not be looking to stay with an Advisor who couldn't prove how they took care of their loved one.

• 70% of females leave their current Financial Planner when their male partner dies
• 90% of children do not use the same Financial Planner once they inherit their parents' Estate.

You may profess to be doing what's in the client's best interest but I guarantee you still have that gut feeling that you may have not done enough...especially, when years go by or you allow the client to "pick" their premiums. Or, even worse, when a client has a major health change which requires care or becomes uninsurable.

LegacyCare Pro is a complementary software that can help you feel better about your Long-Term Care & Legacy plans. It gives you a "proof of purchase" as well as a better story to tell if or when your clients need care.

Again, here are the areas where our innovative software can help you and your clients see better paths to the care they desire as well as leaving a greater legacy behind. It begins with starting earlier and "stacking" of products that need to be tracked. Does your current Financial Software do the following?

1) We can test THREE Long-Term Care & Legacy plan designs at once and project benefits out over the next 30 years. Plan designs, NOT similar products or different premium quotes.?

• You CANNOT say you have done your fiduciary duty, if you don't have a comparison of different plan designs and you cannot show how they each will look at claims time.
• How does the plan look when you add more products or want to add Legacy planning later? Most Advisors have no clue, and this makes it look like you're doing reactionary planning.

2) We show how to make enhancements or changes from now until your clients need care. We test these changes before you make them.?

• If clients have to "get something" started, then you need to be able to show them the next moves.
• If your clients have multiple steps to take and you're the only one with their "plan", then they are more likely to stay with you.
• Testing future enhancements will give your clients a since of security and trust that you are looking out for their best interest.

3) We can track the benefits and performance of your clients' Long-Term Care & Legacy plans and how they work with their Portfolio??

• First, take all Insurance premiums relating to Long-Term Care and Legacy planning out of the same account.
• Did the plan work better than what another Advisor showed or the quotes you got from some Brokerage?
• Is it easier to generate premiums or "dollar-for-dollar" spending?

4) We can track alternative plan designs that you didn’t recommend or show changes that you avoided.

• Sometimes you have to show what you didn't do to prove how good of a job you did.
• In some cases, with LTCI rate increases, job performance has been judge by premiums. However, the reason that many have done this is because we didn't tie the benefits and premiums to their Portfolio. These plans are still good, they just need to be adjusted smartly.

5) We can track a Long-Term Care claim with your client’s Portfolio. Can you show which plan design would have worked better for your client??

• You cannot say it's the BEST if you cannot show claims coming out.
• What does the Cash Flow look like vs. Cost of Care? Again, this could be professional Home Health Care or you need to talk about paying family members.
• Did you show how to "discount" every dollar they spend on care?

6) We can track the Death Benefits before & after a Long-Term Care claim. This includes negative spending (supplementing) from Portfolio.?

• Does the Death Benefit need to be protected for future taxes on Tax-Qualified accounts?
• Can you show a larger Death Benefit than hybrid or Asset-based Long-Term Care plans?
• Negative spending from Portfolio is a negative Death Benefit. Can you show a positive Death Benefit even after claims?

There are more things that the software can do:

• Re-create Long-Term Care & Legacy plans with existing Long-Term Care Insurance (Yes, with rate increases) and adding Legacy planning to complete the plan.
• Shows shifting of dollars from Income planning to Legacy planning. You can do this when the Long-Term Care is separate and already in place.
• ROI of Death Benefits. Each plan will have the same commitment. Which gives you a better ROI for benefits as well as Death Benefit?
• Real-time performance when using one account.
• Set up Generational Wealth transfers using Long-Term Care & Legacy planning (Make the connections now!)

I've been doing this for 30+ years and I know many of the concerns that Advisors have when it comes to their clients outliving their savings, needing care and being able to leave something to the next generation. I've taken all of those into consideration in the design of the software and how we approach Long-Term Care & Legacy planning. The two are connected because your clients will be spending down some portion of their children's inheritance if they want Home Health Care or if they have a poorly structured Long-Term Care plan. Let's make sure that their desires and plans match up.

Give us a case to run through the software. We do not care what resource you use or what BD/RIA you work for. We want to test the software with Advisors all over the country before we take this to the whole Industry.

Reach out for our Long-Term Care & Legacy analysis form. Most Advisors send this to clients before they meet for Annual Review. We're looking 50 to 60 year old clients for Business Owners, Executives or have Health Savings Accounts. You can use this form to get your clients thinking about their future potential for needing care and legacy they want to leave, (page 3). Then, use it to gather information as well as document your conversations. Next, order or run quotes. Then, bring it all to me and I'll run it through the software. You will not see this with any other resource in the country! ~ Barclay