Corporate Compensation Plans (CCP) announced today it has designed a long term care insurance plan especially marketed to the affluent that will reduce estate taxes and increase wealth.
CCP, which creates and implements cost-effective and tax-savvy benefit plans for corporations, has a used a software program to design a long term care insurance plan for the wealthy. The program demonstrates how extended care insurance can provide millions of dollars to estates for little to no cost, assuming the purchaser never needs to use the policy.
Tasha Mayberry, the vice president of Marketing for CCP, explained that the plan is similar to a usual investment put.
"If extended health care in needed, the 'put' is exercised and the insurance company pays all of the costs," she said, and unlike a put, the insurer will refund all of the premium payments if the long term care is never needed.
CCP president Phillip Davis said that while long term care insurance is usually associated with individuals who cannot afford the potential costs of extended care, it is a notable wealth conservation tool because it can abolish the need to liquidate assets, and reduces estate taxes.
The cost of extended care insurance is rising at an almost unaffordable rate, according to an article in the Fiscal Times, which said that 70 percent of people over the age of 65 will eventually be in need of some long term care services.