A “No-Brainer” Long Term Care Solution

I think we all know what “No-Brainer” means but I went ahead and looked it up anyway. It is an “easy or obvious” conclusion, solution or task. Something requiring little or no thought. Something so simple or easy as to require no thought. Or.. an X-Ray of Homer Simpson’s head! I couldn’t resist that last one as it was actually included with some of the definitions I found online. Now, I would be the last one to tell someone that getting Long Term Care protection is a total no brainer. It does take a bit of thought and digging to find the right solution. However, there are some issues we can look at that almost become “NO BRAINERS”.

RATE INCREASES: Long Term Care (LTC) health insurance plans are subject to rate increases and most if not all companies have taken them and some have been very substantial. Even as high as 80-90% or more. During the life of the policy, you can expect to receive numerous increases over time. With Asset Based Long Term Care (ABLTC) which is a policy that uses either Life Insurance or an Annuity as the chassis instead of health insurance, you never have to worry about premium rate increases. The rates are GUARANTEED! To me that is a “No-Brainer” decision.

USE IT or LOSE IT: In most cases, a health insurance based LTC plan has no benefits other than for Long Term Care. If you don’t use the benefits or only use a small amount and then die, you don’t receive any financial value back. With ABLTC plans, because they are using the Life Insurance or Annuity chassis, if you don’t use the benefits or don’t use all the benefits, the remainder will pass on to your heirs. In many cases…Income Tax Free. Again… another easy decision! It is WIN-WIN with an Asset Based plan.

CASH VALUE GROWTH: With health based plans, you have no cash value growth inside the policy like you do with the ABLTC plans. If you have an emergency or just need some extra cash, the Asset Based plans have various provisions to be able to withdraw funds. You are earning interest on your premiums and building up an account. This is still an “ASSET” that you own. Hence the term… ASSET BASED LTC! Health based plans have no cash value growth and no way of accessing funds from the plan since there are none. Even Homer Simpson can see the advantage here!

There are many things to consider when looking at various plans but sometimes if we look at the individual issues like we did here, it will help you in deciding which plan might be best for you. As for me, I will take a plan with Guaranteed No Rate Increases, Cash Value Growth and a WIN-WIN solution every time. Seems like a “NO-BRAINER!

If you would like to discuss these ideas or would like more information on them, please give me a call at 309-297-0296 or email me at mwcaslin@msn.com. If another agent referred you to this site, please contact them. Looking forward to visiting with you on these ideas and solutions.


About Mike Caslin

Been in the Insurance Business approximately 30 years and specialize in finding "Alternative Solutions for Long Term Care Planning." This is primarily using Life and Annuity based Long Term Care products where if you don't use them, the benefits get passed on to your heirs. A WIN-WIN solution to Long Term Care Planning. Former Captain in the U.S. Marine Corps.
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