• Daniel Rondberg

Combined Benefits Product

Hey, this is Daniel Romberg and I want to talk to you today about something called a combined benefits product. What is it and how can I help you in your retirement? Hey, welcome back. This is Daniel Romberg from the retirement research foundation and I want to share with you how you can use something called the combined benefits product to help your retirement and it's very simple. Look, people know they need to plan for long term care, but do you buy a long term care insurance policy to do that or do you try to self-insure by building up your own assets? That's something that you're going to have to, you know, determine with your advisor. Now, some people need life insurance and their portfolio either to settle in a state equitably to make sure they protect a spouse or a family member or to use money to transfer your wealth to the next generation.

Now, combined benefits product is basically those two products put together. You can get life insurance that has a long term care benefit that will pay out tax free if you get sick and need money for care and qualify under a care event specified in your policy. Combined benefits products can be extremely valuable to help you to mitigate that risk and expense. Now some of them have true long term care benefits and some of them are just life insurance benefits that pay out upon death, but they have what's called an accelerated benefit rider, which allows it to pay out while you're alive, either if you have a chronic or critical or terminal illness. Now what's nice about that version is instead of it being true long term care where it's a reimbursement plan, you know you get a benefits coordinator, you front the expense or work with the insurance company to work with whatever skill provider you're working with to pay the claims directly to the company, the indemnity policies from the life insurance companies, they will just pay you and then you can use that money to go ahead and determine what you're going to need to expense if you get sick and need money for care.

Now having a proper blend of two different products could be really useful because there could be different waiting periods on products. You may need money first to be reimbursed later. So again, a combined benefits product could be a great solution to help you offset some of these risks and retirement for pennies on the dollar. And a lot of them come with guarantees so that you know, look, there's a hundred percent chance none of us are making out of here alive. I think everybody watching this video is big enough to admit that, okay, there's a 72% chance that if you're married over the age of 65 one of you is going to need long term care. The percentages are extremely high that somebody is going to either need care or pass away. And so a combined benefit product will meet the needs of that client 72% of the time, or eventually 100% of the time. If you'd like more information about combined benefit products or accelerated benefit riders, please feel free to reach out. As always, I'm Daniel Romberg take care.

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