We’re looking at it from two angles: creating a greater return and providing greater protection. And, because income is used instead of other investments, more options are available than other types of funding.
What if your clients made a decision about funding their long-term care (LTC) — but they didn’t realize it?
With life full of “what-if” scenarios, chances are your clients have thought about how their life events might affect their portfolio. Some clients are willing to tolerate more risk, but when it comes to LTC, clients could be self-funding by default.
And if self-funding, they should consider having a pool of money to pull from if needed. More often than not, an insurance company can provide additional leverage on the cash if they’ve already set aside the fund.
To get them thinking about their financial priorities, here’s a great question you can ask your clients:
If you need long-term care, which asset would you liquidate first?
Maybe it’s a prized family asset, such as a vacation home. Or it’s pulling from their 401(k). It could be funding from assets intended to leave a legacy.
Let’s take a step back. Before all of that, consider cash accounts that may not be needed. For clients earning an income, using excess cash flow can be a great way to fund an LTC plan.
Start by looking at required minimum distributions (RMDs). If your clients have to take RMDs, do they need the money to live comfortably? If not, look at repositioning RMDs to fund an LTC strategy. It can help protect their other retirement income sources, should they need extended care.
Or have they determined their plans for income either from Social Security or from a pension? If your clients have accumulated wealth, will they need that extra income to live on? They’ve likely made prior investment decisions that may have positioned them for success.
Repositioning those funds can help provide LTC protection — and set up a stronger legacy if they don’t use the policy.
Ultimately, we’re looking at it from two angles: creating a greater return and providing greater protection. And, because income is used instead of other investments, more options are available than other types of funding.
I want to challenge you to write down the names of clients who may not need their extra income stream, then reach out to your Palladium Group team of experts at (888) 274‑5462 or contact@thepalladiumgrp.com so we can help you start the conversation. Together, we can help educate and protect clients through an intentionally funded plan.
*This material is for financial professional and educational use only. Not to be reproduced or shown to clients.