LifeInsurance with LTC

Long-term care benefits linked to a Fixed Premium Whole Life Insurance Policy

This non cancellable coverage (nothing can be modified without your permission – not even the premium) is becoming increasingly popular for obvious reasons. Besides fixed premium stability, the plan also provides an invaluable feature. If you never need extended care you can recover 100% of your premium cost. If you don’t use it you don’t lose it. And the premium is even credited with a floor rate interest guarantee that historically has been significantly higher than CD and savings account yields!

How does this work?

A better way to self insure in 6 easy steps!

Step One

A 58 year old decides to reposition $100,000 from an underperforming asset. He makes 5 annual premiums of $20,000 into a Hybrid insurance policy.

Step Two

At the end of year 6 he can always get his $100,000 back and should he die $176,000 will be paid income tax-free to his beneficiaries.

Step Three

The $100,000 ($20,000 for 5 years) initially leverages into a $400,000 long-term care benefit.

Step Four

When he is most likely to need long-term care, the $100,000 ($20,000 for 5 years) is leveraged into a $1,000,000 long-term care benefit.

Step Five

He would have had to invest his original $100,000 at 7.4% after-tax to generate the same $1,000,000 long-term care benefit.

Step Six

And if he never needs long-term care his beneficiaries will receive a tax-free death benefit in excess of what his original premium was.

Summary

Think about it, for those who were planning to self insure who wouldn't want to consider a hybrid plan?

Funding with Rainy Day Money

Most people fund these plans through a variety of sources. You may have a one dimensional low to no yield investment vehicle (CD or savings account) that can be put to better use. You may have a cash value life insurance policy - but are at a stage in life where death benefits are not of primary importance. Life insurance policies can often be 1035 exchanged into this vehicle- without a taxable gain.

All LTC solutions have different strengths. What is "best" depends upon your unique circumtances. We can help!

hybrid long term care insurance / life insurance with LTC / MoneyGuard

Things to Consider

Hybrid Long Term Care Insurance.
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