Broker Check
Masthead Image

Long Term Care Planning


Quick Links

For many in our society, thinking about Long Term Care is somewhat disconcerting, and it makes perfect sense why. The fact of the matter is, individuals really do not like to think about the possibility of no longer being able to take care of themselves. That being said, many people feel very strongly about not being a burden on their children. And of course, when grown children do have the desire to help care for their aging parents, which many do, they may not necessarily have the financial resources and/or the time to do so, particularly if they have families of their own. That is why it is so important to be proactive when it comes to formulating your Long Term Care Plan. Having a plan in place means that you have options, and in many cases, having options can make all the difference in the world.



Understanding The Need: The Statistics

The Long Term Care Planning process begins with understanding the need. In order to do this, we simply need to look at the statistics. There are two things that should be noted about the statistics that exist within the world of Long Term Care.

First, the figures have a history of changing substantially from year to year. This is in part due to the fact that historically the inflation rate for Long Term Care has been higher than the inflation rate for the overall economy. This is also true for things like healthcare and college. Furthermore, over time, the average life expectancy figures for both men and women have also gone up. Consequently, factors such as these, as well as many others, have had a track record of shifting the numbers from year to year, sometimes more than people may realize.

Secondly, the costs associated with Long Term Care can vary substantially depending on where one lives. Costs can certainly vary by State, but costs can also vary quite a bit within a given State. For example, costs in a rural setting can differ substantially from costs in a major metropolitan area. And of course at the end of the day, the nature of one's care is always a relevant factor as well. There are many variables that can come into play.

As a result of these circumstances, when looking at all of the statistics, it is important to remember that they are merely averages, and also that they may only be relevant for a certain period of time.

Ultimately, what is most important about the statistics is not the specific numbers themselves, but rather what
the numbers represent. For many in our society, becoming aware of the statistics that pertain to Long Term
Care can be an eye opening experience, which often reinforces the need to be proactive when it comes to planning.


                
                                        


Long Term Care Planning is not just about the aging individual.
In many cases, it's also about the family.


Life Happens | Long Term Care


Understanding The Need: Additional Insights


Understanding The Need: Longevity Risk

After becoming aware of the statistics that pertain to Long Term Care, many individuals and couples subsequently become very curious about their own longevity.
How long could I live? How long will I be able to stay in my own home? What do I do and where do I go if I need help?

Many seniors are concerned about the point at which they will no longer be able to take care of themselves. It is also very common for seniors to be concerned about the possibility of outliving their financial resources. Consequently, understanding Retiree Financial Longevity Risk can certainly reinforce the need to be proactive when it comes to Long Term Care Planning.

We invite you to utilize the Actuaries Longevity Illustrator in order to assess your situation. It is a phenomenal planning tool and the link is listed below.

American Academy of Actuaries | Society of Actuaries
Actuaries Longevity Illustrator



Actuaries Longevity Illustrator

  • Longevity: How long you might actually live

  • Life Expectancy: How long an individual of your age, gender, and health would be anticipated to live on average

  • Retiree Financial Longevity Risk: The risk of outliving your financial resources


At C.M. Carrillo Financial Advising, Long Term Care Planning is actually one of our niches. We
truly have a passion for it. Consequently, we pride ourselves on being able to offer a wide array of
different Long Term Care Planning solutions. Below, we have provided some general information
about each planning strategy that we are able to offer along with some additional resources that
you can use to determine which strategies you may like to learn more about.


Strategy 1 - The Traditional Strategy

The Traditional Long Term Care Planning Strategy involves what some refer to as a “stand alone” Long-Term Care Insurance Policy, which would be a “Partnership Approved” solution. With this strategy, premium payments would be paid into the policy over a period of time and those premium payments would essentially purchase your Long-Term Care Benefits, which are held within your Long-Term Care Benefits Pool. The policy establishes the conditions and parameters with regards to how the benefits in your Long-Term Care Benefits Pool may be utilized, accessed, and paid out.

The term “Partnership Approved” refers to one's ability to take advantage of their State's Long Term Care Partnership Program, which involves Long Term Care and Medicaid. Estate Planning may also come into play when individuals, couples, and families start addressing this particular aspect of the overall financial planning process.

Below, we have listed some resources that you can use to learn more about the Long Term Care Partnership Program and we have provided some specific links for the State of Missouri since C.M. Carrillo Financial Advising is based in The Greater St. Louis Area.

Missouri State Resources

Missouri Department of Insurance
Long-Term Care Insurance


Missouri Department of Social Services

DSS.MO.gov | Missouri Long Term Care Partnership Program


American Council on Aging


American Council on Aging


The National Elder Law Foundation (NELF)

National Elder Law Foundation



The Hybrid Product Solutions

Over the years, financial industry professionals and insurance companies have observed certain trends within the marketplace, particularly when it comes to the demand for certain Long Term Care Planning solutions. Consequently, insurance companies have taken steps to effectively respond to these trends. They have done this by fundamentally reconfiguring the way in which their Long Term Care Planning solutions are constructed. Therefore, over time, the way in which financial industry professionals have navigated the Long Term Care Planning process has evolved as well.

As a result of all the changes that have been taking place within the world of Long Term Care, many of the so-called “Hybrid Products” have been becoming increasingly popular for a number of reasons. There are of course many different solutions currently being offered in the marketplace and each insurance company has its own name for each product within its suite of offerings. In short, it can very quickly become confusing and overwhelming; however, generally speaking, all of the hybrid products can be categorized by strategy.

It should be noted that none of the Hybrid Product Solutions are "Partnership Approved."

Below, we have outlined a number of Hybrid Long Term Care Planning strategies that C.M. Carrillo Financial Advising is able to bring to the table. Please note that this is not an exhaustive list of specific solutions; it is merely meant to be an overview of various planning strategies.

Furthermore, you may notice that each strategy listed below specifically mentions Massachusetts Mutual Life Insurance Company (MassMutual). That is because C.M. Carrillo Financial Advising has a special and very strong relationship with MassMutual. We certainly are very proud of that relationship and we wholeheartedly believe in the business model of our firm.

With that being said, please also note that C.M. Carrillo Financial Advising is an independent financial advisory firm; therefore, we are not held captive in any way. As a result, we have the ability to access a wide array of different insurance carriers within the marketplace, which in turn allows us to offer all of our clients an enhanced level of flexibility.

Strategy 2 - Life Insurance Policy with Optional LTC Rider Attached

MassMutual's LTCAccess Rider - A Rider Brief

MassMutual's Cognitive Assessment for the LTCAccess Rider – What to Expect

Strategy Overview

  • A permanent Whole Life Insurance Policy is used as the chassis.
  • A Long Term Care Rider is attached to the policy, which allows for the "acceleration" of the Death Benefit for the purposes of Long Term Care.
  • This strategy emphasizes the Life Insurance Death Benefit and positions the Long Term Care Benefits as a supplemental long term care planning tool.
  • Long Term Care benefits are generally paid out on a tax free basis.
  • The "Use It, Use It, or Use It" Concept is applicable.
  • The policy owner enjoys the Tax Shelter Benefit with regards to the Cash Value within the policy.


Strategy 3 - Multiple Premium Life Insurance Policy with Built-In LTC Rider

MassMutual's CareChoice Select - A Strategy Snapshot

MassMutual's CareChoice Pre-Qualifying Checklist

MassMutual's CareChoice Pre-Interview: What to Expect

Strategy Overview

  • A permanent life insurance policy is used as the chassis.
  • This strategy emphasizes the Long Term Care Benefits over the Life Insurance Death Benefit.
  • A Long Term Care Rider is automatically built into the policy, which allows for the "acceleration" of the Death Benefit for the purposes of Long Term Care.
  • Long Term Care benefits are generally paid out on a tax free basis.


Strategy 4 - Single Premium Policy with Built-In LTC Rider

MassMutual's CareChoice One - A Strategy Snapshot

MassMutual's CareChoice One - An Overview Guide

MassMutual's CareChoice Pre-Qualifying Checklist

MassMutual's CareChoice Pre-Interview: What to Expect

Strategy Overview

  • A permanent policy is used as the chassis; however, the policy is technically a Modified Endowment Contract (MEC)
  • This strategy emphasizes the Long Term Care Benefits over the Life Insurance Death Benefit.
  • This strategy is excellent for individuals who would prefer to contribute one lump-sum premium payment directly into the policy and then have no subsequent premium payments. (Minimum: $25,000)
  • A Long Term Care Rider is automatically built into the policy, which allows for the "acceleration" of the Death Benefit for the purposes of Long Term Care.
  • Long Term Care benefits are generally paid out on a tax free basis.


Strategy 5 - Single Payment Program (SPP)

MassMutual's Single Payment Program (SSP)
Brochure

MassMutual's RetireEase (SPIA)
Brochure

MassMutual's LTCAccess Rider - A Rider Brief

MassMutual's Cognitive Assessment for the LTCAccess Rider - What to Expect

Strategy Overview

  • A permanent Whole Life Insurance Policy is used as the chassis in conjunction with a Single Premium Immediate Annuity (SPIA).
  • This strategy is excellent for individuals who do not want to make premium payments after the first year.
  • The client will make a one-time premium payment directly into the Whole Life Insurance Policy for the first year. A lump-sum is simultaneously contributed into a SPIA, which will then automatically pay into the Whole Life Insurance Policy over a period of time beginning in the second year.
  • A Long Term Care Rider is attached to the Whole Life Insurance Policy, which allows for the "acceleration:" of the Death Benefit for the purposes of Long Term Care.
  • Long Term Care benefits are generally paid out on a tax free basis.
  • The "Use It, Use It, or Use It" Concept is applicable.
  • The policy owner enjoys the Tax Shelter Benefit with regards to the Cash Value within the policy.
  • This particular strategy is most often considered by high net worth clients.


Long Term Care Planning is so very important and it can certainly seem like a lot to think about, but it definitely doesn't have to be a big headache.
We guide people through the planning process everyday; therefore, if you would like to explore your Long Term Care options, Call Today!
It's as easy as sitting down and starting a conversation. We are always here to help in any way that we can.
(314)-724-0116



Care Coordination Services

When individuals are no longer able to care for themselves, their spouse, an aging parent, or a loved one, the situation can very quickly become overwhelming. Sometimes one's health situation can change rapidly and sometimes it is a more gradual process. Whatever the case may be, no longer being independent and self-reliant can be stressful and quite unsettling for individuals in such circumstances. Furthermore, at times it can also be difficult for loved ones to manage the circumstances of the situation. Seeing a loved one's health deteriorate and finding appropriate ways to have difficult conversations in which big decisions must be made is not always easy.

In light of this, C.M. Carrillo Financial Advising understands that whenever this sort of situation arises, individuals, couples, and families may require some special guidance in order to identify and evaluate all of the options that are available when a transition becomes necessary. That is why we have established relationships with trusted individuals who actually specialize in helping individuals, couples, and families make the transition into the care that they need.

If you should find yourself in a situation where you or your family would really benefit from the guidance of a trained professional, we would highly encourage you to reach out to either of the companies listed below. Each company will help you explore your care options given your unique situation and specific needs.


Senior Care Authority
St. Louis, MO
Erin Dwyer-Busch
, Certified Senior Advisor (CSA)

          



MassMutual Care Coordination Services

MassMutual Policyholders that have an insurance policy with Long-Term Care Benefits are entitled to take advantage of the company's Care Coordination Services. The brochure below provides information about the company's Care Coordination Services Benefit.


Helping You Transform Your Vision Into Your Reality



C.M. Carrillo Financial Advising and MassMutual do not render tax or legal advice.

Christopher Carrillo is a Brokerage Insurance Agent with MassMutual Financial Group.

MassMutual Financial Group is a marketing designation (or fleet name) for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliates and sales representatives.

Christopher Carrillo offers insurance products through MassMutual as well as other insurance carriers.

All entities listed are separate and unrelated to C.M. Carrillo Financial Advising and Prosperity Wealth Management, Inc.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.