By David T. Phillips, CEO
I want to share with you a conversation I had the other day with a client when telling her the good news that she was approved for coverage for her Return of Premium Long Term Care Plan (ROP LTC).
Bonnie (not her real name) is a single, 58 year old nurse from Michigan. She called us a few weeks ago, after reading about my firm and The ROP LTC Plan in Bob Carlson’s Retirement Watch newsletter. After a series of discussions and illustrations, she completed an application and the interview with the underwriter. She was now approved and it was time for her to transfer the funds to bind her coverage.
While these are not her exact words, this was the gist of our conversation:
“Thank you David for making this happen. With my ROP LTC Plan, I now have options. Before today, I really only had one option, and that was to hope my savings and retirement plans lasted through any long term medical situation I might experience. I mean, as I nurse I have seen it all. I know firsthand that anything can happen. Now with my ROP LTC Plan in force, I have options.
Let’s say, 10 years from now, I slip and fall on the ice and find myself disabled. Since my ROP LTC has an Indemnity pay out after 90 days, I will have plenty of tax-free cash to do as I please. If I want to have my friend Charlotte move in and take care of me, I can.
If I want to relocate to Florida so my daughter can watch over me, I can. And in both cases I can pay them a tax-free salary, from the cash I will receive from my ROP LTC Plan.
If I want to stay here in my home in Michigan and have a professional care giver take care of me, I can. In that case I will be able to use the tax-free cash from my ROP LTC Plan to pay for my care and will not be forced to deplete any of my other assets.
If I want to move to “Friendship Village” and have them take care of me, I can use the cash from my ROP LTC Plan to pay for it. Point is David, I have options, plenty of them. Before I talked to you, I really only had one option and that was to spend down all of my cash first, then sell off everything else.
Now I have endless options. And what’s more,
it really isn’t costing me anything.
I just transferred $100k from a silly CD that was set aside to pay for a potential LTC event. Now I am initially leveraging that $100k by a factor of 3, and because I have included an inflation rider that factor will increase as high as 6 times.
Furthermore, if I get lucky and am one of the 20% that miss the LTC train, all of my deposit is returned to my ultimate beneficiaries at my passing. It is just like you said when I first called you. I transferred my CD funds from my left pocket to my right pocket and the money is still on my balance sheet, but now I have options.
All it is costing me is the use of that CD money through the years and SO WHAT. I was hardly earning any net after-taxed interest anyway. And had I invested it in the market when it came due, chances are I probably would have lost it anyway.
Now I have options – so many options.
David, I can’t imagine why everyone else doesn’t jump on this opportunity while they can.”
Bonnie absolutely gets it and she is right! Everyone should know about the leverage and benefits of the ROP LTC Plan and the peace of mind it creates.
With the ROP LTC Plan, Bonnie is confident in her future and doesn’t worry about tomorrow. Best of all, since every aspect of her ROP LTC Plan is completely guaranteed, she will NEVER have to worry where the cash is coming from to take care of her, should her LTC train arrive at the station.
Your first step is for you to find out for yourself what your ROP LTC Plan would look like should you reposition some of your assets. Simply CLICK HERE to submit your Request online and we will send to you at no cost your personalized ROP LTC Summary.
Feel free to call our office if you have any questions – 1 888-892-1102