An estate planning and financial consulting professional based in Florida, Brad Liebe splits his time between giving motivational speeches for Rick Olson Seminars and leading KK&B Financial Services for Seniors, which he owns. In the latter role, Brad Liebe helps individuals meet their financial objectives by offering products such as asset-based long-term care (LTC).
Asset-based LTC (or linked-benefit LTC) is a unique life insurance policy that offers both living benefits and a death benefit to owners.
This is different than traditional LTC plans, which only account for the possibility that owners will require long-term care. Assuming this type of care is needed, traditional LTC plans will pay out to help cover it. Unfortunately, the money paid into such a plan goes nowhere if long-term care is unnecessary. Since many owners are concerned about this possibility, more and more are turning to asset-based LTC plans instead.
With an asset-based plan, a death benefit is paid out no matter what. If the owner of the policy requires long-term care, this benefit is paid out earlier to cover the cost of such care. However, if the owner does not require long-term care during their life, then the money in the asset-based policy goes to the owner’s beneficiaries in the form of a death benefit.
Since asset-based LTC policies account for both living and death benefits, the premiums associated with them are higher than the premiums associated with traditional LTC plans. Asset-based plans are not subject to federal income tax, and typically have the same premium amounts throughout the life of the policy.
Asset-based LTC (or linked-benefit LTC) is a unique life insurance policy that offers both living benefits and a death benefit to owners.
This is different than traditional LTC plans, which only account for the possibility that owners will require long-term care. Assuming this type of care is needed, traditional LTC plans will pay out to help cover it. Unfortunately, the money paid into such a plan goes nowhere if long-term care is unnecessary. Since many owners are concerned about this possibility, more and more are turning to asset-based LTC plans instead.
With an asset-based plan, a death benefit is paid out no matter what. If the owner of the policy requires long-term care, this benefit is paid out earlier to cover the cost of such care. However, if the owner does not require long-term care during their life, then the money in the asset-based policy goes to the owner’s beneficiaries in the form of a death benefit.
Since asset-based LTC policies account for both living and death benefits, the premiums associated with them are higher than the premiums associated with traditional LTC plans. Asset-based plans are not subject to federal income tax, and typically have the same premium amounts throughout the life of the policy.
