I listen to you and what you want. There are two areas that I hear over and over again: Long Term Care and a safe investment that make more than 1%.
Almost all clients I meet with want and understand the need for long term care. However, almost all the clients I meet with do not have long term care. The number one reason is, “what if I don’t use it”, or “I feel like I’m not getting anything for my premium.” At the same time, clients express frustration over making 1% in their money market account or CD. They want safety as well as growth.
The ideal answer is an alternative, called a single premium universal life product. This type of policy is versatile in that it accomplishes multiple benefits including (the rates/attributes below are from one particular product as of 12/12/2013 for illustration purposes):
- Safety. The investment is protected. It has a floor, the principle is guaranteed.
- 12% bonus. Like many annuities, this product offers a jump start on your growth.
- Upside growth. Unlike your money market or CD, with this policy has a very high monthly cap. This product has averaged 7.4% over the last 30 years. Last year the product earned 23%. The fixed rate option alone is currently 4.2%.
- Long Term Care. This product has long term care benefits. If you need the benefits you use them, if you don’t need the benefits you still have your investment and other benefits to utilize.
- Tax free death benefit.
- Return of premium. You are not locked into a long term contract.
This is an example of this insurance policy being used as an alternative to traditional long term care and a money market account. The versatility of this product makes it a valuable piece of many retirees’ portfolios. It is not the only piece to a healthy portfolio, but a valuable alternative to assets making one percent currently while providing long term care benefits. As I was told, “It is not too good to be true; it is too good to be available for a long time.”
To learn more from this annuity professional, click here (Richard Ericson).
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