LTCia.com
FOR IMMEDIATE RELEASE
CONSULTANT PUBLISHES NEW LONG-TERM
CARE (LTC) PLANNING SOFTWARE
Wildwood, MO -- A new long-term care financial
planning software program has been released by
LTCi Decision Systems, Inc., a Missouri based
LTC software development and consulting firm.
The LTC ECONOMIC IMPACT PLANNING MODEL
was designed for use by professional advisors, their
clients, and others seeking a comprehensive
understanding of the financial impact of different
LTC planning scenarios. Economic impact projections are
based on specific planning assumptions controlled
by the individual planner.
Planning variables include: client data, LTC care
factors, tax on liquidated assets, loss of investment
opportunity, and insurance benefit design. Generic
and approximate insurance premiums are automatically
calculated based on client ages, preliminary health
rating, and the selected benefit design or level of
insurance coverage owned or being considered.
Specific premiums can be used as an alternative.
Economic Impact reports illustrate the results with
and without insurance coverage. The reports include
graphic, verbal and spreadsheet formats to facilitate
quick visualization as well as detailed review by legal,
tax, and other professional advisors. An unlimited
number of scenarios can be calculated for each client.
The software facilitates LTC risk analysis and primary
insurance benefit design which should be completed prior
to the discussion of specific insurance products.
In a case study illustrated in the
LTCia.com web
site, the model projects the lifetime economic
impact on the estate of Mr. and Mrs. Sample with and
without insurance. Scenario "A" estimates estate
erosion for Mr. and Mrs. Sample at $2.6 million
without insurance and $440,000 with insurance.
The cost with insurance includes premium expense,
loss of investment opportunity on the premium and
the portion of the cost of care not covered by
insurance due to a 90 day elimination period. In this
scenario, Mr. Sample needs 6 years of care starting
in year 18 of a 30-year estate plan. Additional
planning assumptions in this scenario include estimated
current cost of care at $200 per day growing at 5%
inflation. Insurance policy assumptions include
100% home care, unlimited benefit duration, 5%
compound inflation, and $4,400 annual premium
covering both Mr. and Mrs. Sample. Tax or other
asset liquidation expenses to pay care costs are
estimated at 20%. 6% is the loss of investment
opportunity used in this scenario. When fully
understood, the magnitude of the risk compels
professional advisors to address LTC risk mitigation options
with their clients, even in, or particularly in affluent
households where average cost of care figures are
not relevant.
The planning concept and design was created by
Ralph Leisle, CLU, ChFC, owner of LTCi Decision
Systems, Inc., a firm specializing in Long Term
Care software development and consulting.
The LTC ECONOMIC IMPACT PLANNING MODEL
sells for $249 to any professional association member
or first person in a small group and $199 to each
additional person in a multi-user setting. The model is
also available on a quote basis for customized, private
label licensing agreements and lower cost large group
pricing.
Descriptive information is available at
www.LTCia.com
or from LTCi Decision Systems, Inc., 1608 Ridge
Bend Drive, Wildwood, MO 63038 (800-360-9853).