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🛡️ Long-Term Care Planning Has Evolved — Here’s What Advisors Need to Know

Picture of Eric Estrada

For years, traditional long-term care (LTC) insurance was the default strategy. But today’s market — and client expectations — have changed. Enter asset-based LTC: a more efficient, tax-advantaged solution that’s winning over both advisors and retirees.

If you’re still leading with standalone LTC insurance, here’s why it’s time to offer an alternative.

🏛️ Traditional LTC: The Old Model

Traditional LTC insurance is similar to health insurance:

  • Pay ongoing premiums

  • Use it or lose it

  • Premiums not guaranteed (subject to rate hikes)

  • If you never need care — you get nothing

This can make clients hesitant to commit, especially when they’re healthy and unsure of future needs.

đź’° Asset-Based LTC: The Modern Alternative

Asset-based solutions (like hybrid life or annuity-based LTC plans) use an existing asset to fund care without “wasting” the money if it’s never needed. These policies typically:

âś… Provide tax-free long-term care benefits
✅ Offer guaranteed premiums — no surprise hikes
✅ Include a death benefit or cash value if care isn’t used
âś… Often require no medical exams (especially annuity-based options)

You can fund them with:

  • Old non-qualified annuities (via PPA)

  • Single-pay life insurance

  • CDs or savings accounts that aren’t earning much

🔄 Side-by-Side: Traditional vs. Asset-Based LTC

Feature Traditional LTC Asset-Based LTC
Premiums Ongoing, can increase Single-pay or limited-pay, guaranteed
If No LTC Needed Nothing back Death benefit or cash value
Tax-Free Benefits Yes Yes
Underwriting Usually strict Often simplified or none (annuities)
Popularity Declining Growing rapidly

🔍 The Advisor's Takeaway

Traditional LTC still works in certain cases — especially for younger clients seeking maximum leverage. But most retirees prefer control, guarantees, and flexibility.

And with products like OneAmerica’s Annuity Care II or Lincoln’s MoneyGuard, you can now deliver all three — while solving one of the biggest risks in retirement planning.

Help Clients Plan With Confidence

Don’t let your clients “wait and see” on care planning. Use asset-based LTC solutions to:

  • Protect income and legacy

  • Reallocate underperforming assets

  • Create a plan that gives them something back — no matter what happens

Need help identifying good candidates or repositioning assets like old annuities or CDs? Let’s talk strategy.