Our asset-based long-term care solutions seek to provide you greater financial stability and security.

FINANCIAL CONFIDENCE IS POSSIBLE

With healthcare costs continuing to rise and people living much longer, consumers have become more demanding about guarantees in the financial services industry.


Filling the critical need to bring people a more dependable and effective long-term care (LTC) solution, asset-based LTC strategies have become a more popular option over traditional health-based solutions.

MAJOR ADVANTAGES
Asset-Based LTC Alternatives
A life insurance or annuity payout is made to beneficiaries at the time of death if the policy has not been exhausted for long-term care expenses.

Premiums are usually guaranteed, meaning older clients will never be exposed to an increase in the cost, especially at a time when they can least afford it.
DID YOU KNOW?
MEDICARE DOES NOT COVER LONG-TERM CARE.

If long-term care is needed, an uninsured individual is forced to use up a significant portion of his or her personal assets or estate value before qualifying for Medicaid Benefits.

COMPARE the COMFORT
CLIENT COMFORTS ASSET-BASED TRADITIONAL
Benefits if Long-term Care Never Needed YES NO
Inflation Protection YES YES
Return of Premium Guarantees YES* NO
Joint Policy Structure (Husband/Wife or Wife/Child) YES NO
Optional LTC Coverage for Life YES YES
Rising Long-term Care Premiums NO YES
Asset on Balance Sheet YES NO
Underwriting YES** YES
Pension Protection Act Qualified YES YES
  *Principal Guranteed less any policy distributions, (Withdrawals and/or Benefits Paid)
**Asset-Based Underwriting is less intensive

How is the asset-based LTC product better than a CD?

WHY IS IT IMPORTANT TO ADDRESS CARE IN YOUR FINANCIAL PLAN?

NORTHINGTON: Beyond longevity risk, a health care emergency is the biggest risk to derail ones retirement. As a CERTIFIED FINANCIAL PLANNER™ Professional, I can assure you that “hope” doesn’t qualify as a LTC plan. The potential a health emergency has to derail one’s retirement, impact the financial security of the surviving spouse, and jeopardize the health and wellbeing of one's very own children is too high a risk to ignore.

WHAT IS ASSET-BASED LONG-TERM CARE?

NORTHINGTON: Asset-based LTC policies combine long-term care insurance benefits with life insurance benefits or a cash value annuity and help transfer the risk of a health care emergency to a third party, in this case a Life Insurance Company.

WHAT IS THE IMPACT ON THE WIFE FROM A HUSBAND'S LTC EVENT?

NORTHINGTON: If there is a health care emergency, it’s not unusual for the husband to have it first. The result is the wife becomes the caregiver and the financial assets are spent down for his care. Having a care solution that allows her to be a care manager vs. a care giver is a wonderful solution and helps preserve assets for her care, protecting her health well-being can be very comforting to her.

YOU MAY NEVER NEED CARE, BUT WHAT IF YOU DID? HOW WOULD THIS IMPACT YOUR FAMILY, YOUR CHILDREN, AND YOUR LIFESTYLE?

NORTHINGTON: I don’t believe clients plan to be a burden to loved ones, more often than not it’s simply a failure to plan. Having a plan that repositions an existing asset like a CD, Savings Account, Annuity, or even the cash value of another insurance policy can transfer this risk to a third party like an Insurance Company.

WHAT IF MY CHILDREN DON'T LIVE CLOSE, OR LIVE OUT OF STATE, CAN AN ASSET BASED LONG TERM CARE PLAN HELP ME STAY WHERE I LIVE TODAY AND RECEIVE CARE AT HOME?

NORTHINGTON: You are not alone, as a CERTIFIED FINANCIAL PLANNER™ Professional, I work with many clients who prefer to stay in their current city or community versus picking up and moving closer to their children. An asset-based LTC solution can help provide care for you right where you live – even in your home. This provides a level of independence and comfort for both you and your children at a time when it’s needed the most.

WHAT IS THE COST OF CARE FOR ONE YEAR, FOR A PRIVATE ROOM, IN THE STATE OF ARKANSAS, TEN YEARS FROM NOW IN 2025? AND WHAT IS THE AVERAGE LENGTH OF STAY FOR CARE IN OUR COUNTRY?

NORTHINGTON: According to AARP, the average cost for a private room in Arkansas will be $97,615 in 2025. The American Academy of LTC Insurance says the average stay for a female is 2.6 years or $253,799. Do the math: if your husband needs care too, that can be $507,598.

WHAT IS THE FINANCIAL IMPACT IF I WERE TO BE DIAGNOSED WITH A COGNITIVE IMPAIRMENT LIKE ALZHEIMER’S?

NORTHINGTON: According to the Mayo clinic, the average life expectancy of an Alzheimer’s patient from diagnosis is 8 to 10 years. According to our calculations in the above question, that will cost roughly $780,900 in 2025. An asset-based long term care policy may defer some or all of this cost and be there for you if a cognitive event ever takes place. It can protect your family, your children and your retirement when you need it the most.

I AM A 60-YEAR-OLD FEMALE, NON-SMOKER AND I HAVE A $100,000 CD TO REPOSITION IN AN ASSET CARE SOLUTION. WHAT DOES CARE LOOK LIKE?

NORTHINGTON: A solution would be to take your $100,000 and reposition it into an Asset Care policy, which is a whole life policy with a Long Term Care Rider. Your $100,000 will immediately become $202,930 and can be used for LTC expenses for up to 50 months at $4,059 per month.

  • The policy can be customized to pay a higher monthly premium over a shorter time period.
  • The policy can be customized to add additional months of coverage and lifetime coverage with inflation protection.
  • This basic planning technique doubles the amount of LTC dollars you have available for LTC. We call this leverage in the financial world. Instead of having $1 to spend on care, after Asset Care you have $2.
IS ASSET CARE GUARANTEED?

NORTHINGTON: Asset Care has 100% Principal Guaranteed by the issuing insurance company. Guarantees are based on the claims paying ability of the issuing company.

HOW DO I QUALIFY FOR ASSET CARE AND IS IT BETTER TO DO IT SOONER VS. LATER?

NORTHINGTON: You must qualify for Asset Care medically. You must be in reasonably good health, for that reason its best to take the first step to see if you can be approved sooner rather than later. Remember if you wait until you actually need LTC, you probably won’t qualify for it. Now is the time to start planning!

CAN MY HUSBAND OR CHILD BE ADDED TO THE POLICY?

NORTHINGTON: That's one of the biggest benefits of Asset Care, the policy can be set up with both of you as a second to die policy. If one or both need care, the death benefit can be used for both parties. And, yes, children can be added to the policy as well.

WHAT CAN I USE TO FUND MY ASSET CARE LTC POLICY?

NORTHINGTON: Clients use CD’s, Money Markets, Brokerage Accounts, IRA’s, Annuities and even the cash value of life insurance policies.

WHAT IS THE PENSION PROTECTION ACT AND HOW CAN IT BENEFIT ME AND MY CURRENT SITUATION?

NORTHINGTON: The Pension Protection Act of 2006 addresses Annuities, Long Term Care and New Tax Advantages.

  • The PPA Strategy: Effective January 1, 2010, cash value withdrawals from specific annuity contracts are no longer taxable income when used to pay for qualifying long term care expenses.
  • If you have an annuity that you are not using for income, and you meet the health and financial qualifications for Annuity Care, you can simply transfer your existing annuity into a Pension Qualified annuity and that you are able to pull income “Income Tax Free” for qualified LTC expenses. A very powerful way to leverage your LTC dollars for your planning needs.
CONTACT US

Take the next step to finding
your financial comfort zone.

Complete the form to schedule a time
to discuss and evaluate the best product
options for your long-term care needs.

NORTHINGTON INVESTMENT GROUP
16719 Cantrell Road | Little Rock, AR 72223 | 501.993.0167
    
* = required