Traditional LTC or Hybrid - Why Not Both?
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“This woman came to me because her daughter had asked her to look into long term care insurance. Her daughter was such a brillant young lady that she’d ended up in a very high powered, 60-70 hour a week job. Many of us are familiar with this if have intelligent children, we’re watching their careers, oh my gosh, so they decided to get some long term care coverage for mom.” – Sivea Key
On today’s episode, I interview long term care insurance specialist, Sivea Key. Sivea works in a financial planner’s office providing senior insurance solutions. We discuss a unique story of a mom and her daughter that are working on a holistic plan for mom.
The reality of long term care and the 44 Million caregivers in the U.S. today is that often the burden of caregiving falls on the daughters. In this case, the daughter had built a successful career and might have to make a tough choice in the event mom needed long term care in the future.
Without long term care insurance, there could be a couple of future scenarios:
- The daughter might provide the care herself if it is manageable at first. However, this could lead to a slippery slope where she feels that she must continue to provide care even as her mom’s needs become more complex. This might derail her high-powered career.
- A better solution might be for the daughter to use mom’s income and assets to pay for care while finding and negotiating with the right provider. However, this might become financially cumbersome in the face of an extended care event.
Long term care insurance turned out to be a good fit in this case to provide not only insurance leverage in the case of an extended need, but also a roadmap for the plan that would be put into place in the future.
The unique aspect of the solution that matched mom’s needs and budget involved both a traditional and a Hybrid plan. Mom had some cash flow to fund the traditional solution, but not enough to fully cover her needs. So, they were also able to reposition an idle asset with a Life-LTC Hybrid solutions as well.
The top LTC specialists use a consultative approach and a variety of tools to meet client’s needs. This is an example of a built-to-order solution that provided just the right fit.
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