LTC Planning – Importance, Impetus, and Incentives
We have long been advising on the “state of the state “of the LTC Insurance market.
This includes the changing landscape of carrier offerings, tax incentives, closing of gender-neutral pricing, along with the rewriting of guidelines due to Covid-19.
We are forward facing now with news of an uber timely “fire sale” for New York clients.
On November 1, 2021 Mutual of Omaha will raise rates on new applications for New York contracts. We are expecting an increase in pricing of 20-40% on a fan favorite LTC plan.
What’s behind the increase on new Mutual of Omaha applications?
Generationally, we see new policies as a way for carriers to keep stable premiums for current policy holders. Meaning, existing contracts will keep the stability of their premiums. With increasing claims data, a low interest rates, new contracts reprice. Clients with in-force LTC contracts will NOT see any changes because of this repricing.
Additionally, some life insurance carriers are also forecasting increases for new Life Insurance with LTC rider policies and are expected to reprice by January.
Call to Action
There is a small window to get applications in – in advance of the repricing.
Single women/men. Married couples. Solo agers. Shared care policies for couples.
If you or your clients are thinking about it. N-O-W is the time. Worth saying this twice. Now is opportune.
Financing the Premium
If you have cash value in life contracts (or annuities*) there are 1035 opportunities for a tax-free exchange into life and LTC contracts.
HSA accounts are a triple tax- free vehicle to use to finance LTC premiums.
Rich federal deductions are available for business owners.
Importance, Impetus, and Incentives
Importance of long-term care planning addresses the increased longevity conversation, legacy and lifestyle.
Impetus is a conflux of changing family dynamics and solo aging, limited government programs, the true cost of self-funding or waiting and the risk of being uninsurable.
Incentives speak to the vast federal and state incentives that help clients pay for their LTC.
As national and independent brokers, we are fiercely client focused and affiliate with ALL LTC Insurance carriers and myriad options in today’s marketplace. Standalone, asset-based/hybrids and Life Insurance and Annuities with LTC riders.
We are regarded for our transparency, educational planning and consultative platform.
Recognized by national and local media, recipients of citations and for our congressional recognition, Karp Loshak LTC Insurance Solutions is a trusted resource for consumers and professional advisors.
Rona Loshak and Natalie Karp
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