Hara Financial & Insurance Services specializes in designing long term care solutions for their clients. Because Kyle Hara is Certified in Long Term Care and a Long Term Care Professional, his company strives to stay familiar with the different companies available and the new innovative products that continue to be released. Because long term care products are still relatively new, many people do not understand what these policies cover, how and when the policies pay benefits, who can and should obtain coverage and which companies they can count on.
Long Term Care Insurance
The long term care insurance industry has changed dramatically over the past 30 years and continues to change daily. Many companies have made the decision to discontinue future sales of long term care insurance. Many have designed new products and many have increased premiums on their current inforce clients. All of these decisions were made with essentially one goal in mind, to have the money to pay for the policies when the clients need them to pay. If you have questions on your existing policy or are interested in learning more please feel free to contact us. There are many products and many companies and one size definitely does not fit all.
Life Insurance with Long Term Care Riders
One of the biggest complaints with long term care insurance is the same as auto insurance. If you don’t use it, you lose it. This is one of the biggest selling points for people that buy life insurance with a LTC rider. The way these products work is you purchase a death benefit for a specified premium. If you were to qualify for long term care payout, the death benefit is generally enhanced and paid monthly for care. If you never needed care because you passed away, or if you received less than the total death benefit before you passed away, the remaining death benefit is paid to the beneficiaries. In this case, as long as the specified premium is paid, there will be a benefit paid out by the insurance company.
Annuities with Long Term Care Riders
Some people have annuities that have accumulated a lot of interest over their lifetime. Because they have grown so much, the cost basis is low and therefore they will usually have taxes to pay when they take a withdrawal. Well, many tax professionals will tell you that if you use those annuities to pay for qualified long term care expenses, those withdrawals could essentially be tax free withdrawals. But instead of simply withdrawing the annuity to pay for care, one can leverage the annuity by transferring it into an annuity with a long term care rider through a 1035 exchange tax free. The benefit of this annuity with a long term care rider is that these annuities typically have a much better leverage for long term care expenses, so the original annuity that was set aside to pay for LTC expenses, is now transferred into an annuity product that is specifically designed to pay for long term care expenses. Long story short, although you can use most tools for anything, its better to find the perfect tool for the job. Every product is designed with a target client in mind. So let us find the product for you instead of letting others find you for their product.
Communication with the family!
No matter what plan you have, the most important part of the plan is communicating it to the family. The most catastrophic period of any long term care event is immediately when it happens. And the number one reason it becomes catastrophic is because everyone panics to come up with a plan, even if there was already a plan in place. If everyone knows the plan, the panic goes away, and everyone simply executes the plan. At Hara Financial & Insurance Services, after we help you design a strategy, we assist you in explaining the details to the people you love. An excellent plan that is not communicated to the people it affects, many times is worse than a horrible plan that is communicated well.