To sign up for info on this NEW “rated” SPIA or for the webinar, click on the following:
https://advisorshare.com/medically-rated-spia
Retirement Lab™—A Low-Cost In-Person Seminar System That Works! Webinar March 21st at 2:00 p.m. EDT
If you missed last week’s newsletter, click on the following:
https://advisorshare.com/retirement-lab-webinar
This new “rated” SPIA can be used in any fact pattern so long as the client qualifies. In this newsletter I’m going to discuss is in the context of paying for LTC expenses.
If you have clients, friends, or family who are receiving home health care, are in a nursing home, or on their way soon, this newsletter will blow you away.
The problem…LTC costs are crazy expensive!
-In-Home Care = $6,292 monthly ($75,504 a year)
-Assisted Living Facility = $5,350 a month ($64,200 a year)
-Nursing Home Facility (Private room) = $9,733 a month ($116,796 a year)
Genworth Cost of Care Survey 2023
The other problem…Medicaid Spenddown! Generally, in order to qualify for Medicaid, you have to spend down your “countable” assets to $2,000. And most clients DO NOT want to be in a Medicaid facility.
The biggest problem…most elderly clients are stuck between a rock and a hard place:
1) They don’t qualify for Medicaid.
2) They only have enough money to pay the nursing home for a limited period of years.
What happens to this kind of client? They spend all of their money to stay in the nursing home they like, run out of money, and end up going into a Medicaid-paid-for nursing home.
NEW “Rated” SPIA Can be a Life Saver
You may remember when there were medically underwritten SPIAs. If you were in poor health, the insurance company would significantly increase your SPIA payment. Those products no longer exist…UNTIL now!
This product is Medically underwritten but NOT in an invasive manner.
Improving Cash Flow and Quality of Life
Most elderly clients have a finite amount of money and as I just alluded to, many will be forced to spend that money to pay for their nursing home care before qualifying for Medicaid.
If they are going to be forced to spend it, wouldn’t it be better to potentially double the cash flow from those available assets?
Or what about potentially using only 50% of the available assets to generate the needed cash flow, thereby leaving more assets to the heirs?
Let’s look at a real-world example—Female aged 75, diagnosed with Vascular Dementia. She moved to an Assisted Living community earlier this year. She is struggling with 5 out of 8 ADLs. She has a care shortfall of $5k per month (her care expenses = $7.5k and her cash flow is $2.5k per month).
She has asset of $500k that must be spent down in order to qualify for Medicaid.
Here are normal SPIA quotes from the marketplace to generate $5k a month:
-Life-only – $580,559
-Life with 5% COLA – $822,797
-Life with 5-yr Certain – $587,803
As you can see, she doesn’t have the money to pay these premiums.
NEW Rated SPIA Quote
-Life-only – $285,929
-Life with 5% COLA – $331,397
-Life with 5-yr Certain – $409,286
If she chose the life-only option, she covered her shortfall and had over $200,00 left!
What do you think? If you know someone struggling financially with these issues this should shoot a chill up your spine. We now have a solution for these types of clients that could literally change their lives.
Clients with fewer resources may now be able to dramatically increase the cash flow from their available assets so they can STAY in the nursing home they like and want to stay in.
Nursing Homes Will Be Your Biggest Advocates
Do you know who will love this newly rated SPIA? Nursing homes!
Many of the “better” nursing homes DO NOT accept Medicaid. So, when you RUN OUT OF MONEY, you are asked to leave and are forced to move into a Medicaid-eligible nursing home.
If you can show THOSE IN A NURSING HOME how to potentially double the cash flow from their available assets, it’s a win-win for everyone. The client gets to stay in a better home longer and the nursing home gets to keep a higher-paying patient in the home (and doesn’t have to kick them out).
Where should your next seminar be? Maybe in a nursing home?
Large Average Case Size
How many potential clients are scared to death that they will run out of money and be kicked out of their current nursing home? How many of them have $100k, $250k, or $500k of available assets that they are spending down?
The average premium for this product is $300,000. What a great win-win. Help someone in a dire time of need and get well compensated.
Certified Medicaid Planner™ (CMP™)
FYI, The WPI offers the only “certification” on this important subject matter. To learn more about the CMP™ designation, click on the following link:
