asset based long term care policy

Answer 1

David, There are 2 types of asset-based LTC.  Annuity and Life Insurance.  The annuity based allows the growth to be taken out on a tax-free basis (after 2010, when the Pension Protection Act comes into effect) and the life based is an accelerated benefit which means you can access the death benefit (tax-free) for LTC.  In both cases, the triggers to use benefits are the same verbage as a tradional LTC plan (need help with 2 or more activities of daily living).  In most cases i agree with your agent that your better off to purchase a traditional LTC product, but make sure to go with one of the big players.  If you are determined to use asset based i would recommend Golden Rule(which is now State Life/One America) especiacially if looking to cover husband and wife, only company to offer a joint ownership LTC/LIfe product.  Hope this helps.  If you have any questions, please post.  
Regards,
Ryan N.
LTC Specialist