TOLEDO, Ohio--(BUSINESS WIRE)--Preservation Advantage is making a paradigm shift in the insurance industry by offering its Care Protector Plus web-based solution. It offers consumers and their advisors an opportunity to protect themselves from the possible financial and emotional devastation that could occur with a long-term care event. It also offers a way to transfer assets, often considerably more than what has been paid in premiums, to family, loved ones, or a charitable beneficiary — tax free. Unlike traditional long-term care policies, Care Protector Plus ultimately answers the issue of “What if I pay premiums and never use the benefits?”
A major threat to retaining monetary assets, in the United States, is the very high cost of long-term care. The U.S. Senate Special Committee on Aging projects that by 2025, when today’s 67-year old turns 86; long-term care cost will average $140,000 per year. Many people are under the misconception that the government will provide for this care. A study by the U.S. Department of Health and Human Services says that people who reach age 65 will have at least a 40% chance of entering a nursing home. Only private insurance will cover the cost of this care without the need to deplete family assets and put retirement income at risk.
Preservation Advantage, using the Care Protector Plus solution, demonstrates how an individual can have all the benefits of a long-term care insurance policy without the need to potentially waste premiums. Care Protector Plus uses a patent pending algorithm, to search the database of a national clearinghouse for the best fit with a long-term care policy. In addition, with its optimization technology, it selects a permanent life policy designed to facilitate the transfer of assets, possibly beyond what has been paid in premiums on the plan, tax free.
Many insurance companies have recognized the “What if I never use the benefit?” problem and have been marketing hybrid policies — linked or combination life and long-term care policies. The idea of a hybrid is to provide for a transfer of the premiums paid into the policy, to a beneficiary, if the long-term care benefit is not used. The major problem with hybrid policies is that one must choose between the life insurance benefit and the long-term care benefit. If the money is used for one benefit, it is not there for the other. Care Protector Plus is often more cost effective than a hybrid or other long-term care solution, and Care Protector Plus provides greater benefits.
