Did You Know…?

Posted on May 21, 2018 by The Weekly Commentary

by Roxie Muñoz, CLU^®, FLMI, Assistant Vice President, Insurance Services

What are Long Term Care Hybrid policies, and are they right for you?
Clients today have many more options to assist with covering a portion of a chronic illness. In the past, the only option was to purchase a traditional long term care policy and pay annual premiums for insurance coverage you may never use. And, the premiums are not guaranteed so could increase several times.

Newer generation policies are available that blend several types of insurance coverage into a single contract. These Combination or “Hybrid LTC” policies combine the benefits of an annuity or life insurance with long term care protection. If you never need LTC services, these contracts can provide either an annuity cash value or a life insurance death benefit.

You may have mentally “set aside” some investment dollars which you plan to utilize should a long term care illness occur. By repositioning these monies into one of these policies, the amount will automatically increase for long term care needs.

In addition, the cost of the LTC benefits will not be includible in gross income; it will simply reduce your investment in the contract. You may even be able to exchange an existing annuity, life insurance policy or long term care contract tax-free to one of these policies.

Our office can provide more information, and design a personalized plan based on your financial situation.

Valley National Financial Advisors, and its family of companies, has been in the Lehigh Valley since 1985. The company is independent and locally owned. As a respected and trusted organization, our relationships with many clients and their families transcend generations. We have the expertise to provide clients with financial strategies to effectively manage their existing assets and to provide for the eventual transfer of their wealth.

Our one-stop service model includes: Financial Planning – Investment Management – Estate Planning – Retirement Planning – Education Planning – Tax Planning & Preparation – Insurance Planning – Trust Services, offered as a Trust Representative Office of National Advisors Trust Company, FSB – ExecutiveEdgeTM, Personal Financial Planning for Corporate Leaders. Our services are provided by a team of objective professionals and managed by one contact person – your personal financial advisor.

Valley National Financial Advisors is proud home of the Lehigh Valley’s most CFP® – Certified Financial Planner Professionals^TM. Among other honors, Valley National has been voted Best Financial Planner in the Lehigh Valley seven times by the readers of Lehigh Valley Magazine, and ranked among FA Magazine’s Top RIAs and AdvisorOne’s Top Wealth Managers.

For more than years, our firm has been devoted to helping our clients to achieve their hopes, dreams and aspirations. This requires a delicate balance between the science of financial planning and the art of understanding the feelings and emotions of our clients and their families.

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