By Keiter CPAs
It is our goal as tax and accounting advisors to go beyond traditional tax preparation and identify tax savings and planning opportunities for each of our clients. With that in mind, we are sharing an article by Eric Hieber, principal at Winged Keel Group. In this article, Eric shares insights highlighting the importance of long term care planning and current available insurance options.
We hope you find this article informative and if you would like to learn more about life insurance planning, please contact your Keiter representative or Email | 804.747.0000.
Long Term Care Planning: Is It Important and What Options Are Available?
As baby boomers transition into retirement, the cost of care rises and life expectancies continue to increase, Long Term Care (LTC) is becoming a critical concern for families. In some cases, there is a legitimate concern about running out of resources and depleting a lifetime of savings. In others, parents are worried about becoming a burden for their children or losing the ability to live at home. LTC insurance products have evolved considerably in the past several years to provide clients with multiple choices to meet this emerging need.
Three Types of Clients
In our experience, there are three potential buyers for LTC insurance:
- Buyer #1 – Families with modest resources
- These buyers have the greatest need because of the high likelihood they will liquidate their life savings in the event of an extended illness
- Because of their limited cash flow, they typically cannot afford the proper coverage
- Buyer #2 – Families with greater resources but not enough to “self-insure”
- These buyers have a risk of liquidation of substantial assets in the event of an extended illness but will likely not use up all of their assets
- They have sufficient resources to properly fund an LTC policy
- Buyer #3 – Wealthy families with sufficient assets to self-insure
- These families will not use a substantial portion of their estate for LTC needs – with or without insurance
- LTC for this buyer is a hedge against self-insuring and often a psychological purchase
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About Winged Keel
Winged Keel Group (“Winged Keel”) is an independent life insurance brokerage firm founded in 1989 that specializes in the structuring and long-term administration of large life insurance portfolios for ultra-affluent families. www.wingedkeel.com.
Based in the firm’s Richmond and Washington D.C. offices, Eric oversees case design and the management of client relationships. He specializes in structuring customized insurance solutions that assist families and their advisors in their wealth accumulation, wealth transfer, and business succession planning.
About the Author
Keiter CPAs
Keiter CPAs is a certified public accounting firm serving the audit, tax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial services, construction, real estate, manufacturing, retail & distribution industries and nonprofits. We also provide business valuations and forensic accounting services, family office services, and inbound international services.
More Insights from Keiter CPAsThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
