Advanced Markets Minute – November 2022

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Protecting Your Greatest Assets for Life

Welcome to the Advanced Markets Minute in both print and audio form. Today’s article is called “Protecting Your Greatest Assets for Life.”

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Most people don’t think of asset protection until they have accumulated some wealth and are faced with a specific threat. But at any point in your clients’ lives they have two significant assets and need to protect them. First, they need to protect their ability to earn an income, and they need to protect what they have built so they can enjoy it in retirement. What if you could present your client with a strategy that protects both? Is there one strategy that can do that?

By the fact that we asked the question, you may already know that there is such a strategy. Your clients can protect their ability to earn income with our Mutual Income Solutions disability insurance. With that product you can design the protection your client needs and can add an optional return of premium rider-more on that in a second.

As your clients progress through their careers and have built some wealth, they need to protect not only their ability to earn income but also protect what they have built. What threats will they face? Most clients worry about lawsuits or unfavorable markets threatening their assets, but there is a serious threat that they may miss: the need for long term care.

However well someone plans for their future, an extended stay in a care facility can ruin that plan faster than most people would imagine. Our Cost-of-Care Calculator shows that the national average for a year’s stay in a nursing home in 25 years will be between $200,000 and $250,000 per year. assuming a 3% inflation rate. And with inflation well ahead of 3%, it could be much higher. If someone needs care for three years, that could cost $750,000 or more and could destroy the best of plans for passing assets to family members.

So, here’s the strategy: make sure your clients have Mutual Income Solutions DI with return of premium. Then, as they build assets, make sure they have MutualCare Secure Solution or MutualCare Custom Solution long-term care insurance in place. As they get premiums back from their return of premium DI, they put those funds into an account designated to pay their long-term care premiums. That way they can re-use premium dollars and may not need to find new money to keep the coverage in place.

Asset protection starts long before financial assets are even built. Without the ability to earn an income those financial assets may not materialize. And once they do materialize, long-term care insurance can help keep them in your clients’ hands to pass along to family. Using this 1-2 approach can help protect your clients’ greatest assets, for life.

Call us in Advanced Markets if you have any questions.

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This is for informational purposes only. Recommendations for financial product or financial strategies must be suitable for the individual based on their circumstances. Mutual of Omaha and its representatives do not provide tax or legal advice.

Mutual of Omaha Advanced Markets Minute