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Long Term Care Overview

What is Long Term Care Insurance?

LTC Insurance provides an account of funds similar to a bank account set aside for you to use when you are no longer able to do normal daily activities.   When you need care, you can withdraw from these funds on a monthly basis to pay for care at home, adult day care, assisted living or nursing home.  These funds grow with guaranteed interest year after year, so the longer you hold the plan prior to using it, the more benefit you receive.

Who is a good fit for Long-Term Care Insurance?

  • Business Owners in their 40’s – Great fit
  • Individuals & Business Owners in their 50’s – Great fit
  • Clients in their 60’s that can medically qualify- Good fit, but premiums are more expensive.
  • Clients in their 70’s- Okay fit, can still serve a need, but premiums can be higher and medical underwriting can be a challenge.

What Planning Solutions are available?

Traditional LTC: When comparing premium vs. benefits, this gives you the biggest bang for your buck. You pay an annual premium (monthly, Quarterly or semi), and have access to an account of funds that grows with interest if you need LTC. There is no cash value.

You collect for LTC services only.

Designed for:

  • Clients who recognize the risk for LTCi
  • People who have been a caregiver or have seen loved ones cared for
  • People who are looking for the lowest cost approach for comprehensive LTC protection
  • Business Owners looking for Tax advantages

Life Insurance with Accelerated Death Benefit for LTC: This is a life insurance policy that allows you to access the death benefit early if you need LTC. The premium is roughly double the traditional LTC premium. There is no cash value if you cancel, but would provide a death benefit if you did not need LTC.
You collect for LTC or at Death.
Designed for:

  • Individuals that don’t feel they will ever need LTCi
  • Concerned about increasing premiums
  • Have old existing life insurance policies with cash value (1035 transfer)

Asset Based: This will provide the LTC benefits your client’s desire. Also provides return of premium on cancellation, and a death benefit. Clients who have the assets to transfer like this approach, they take a lump sum amount. They also move the money into the Linked plan and better leverage it against LTC risk without losing control.

You collect for LTC, at Death or if you cancel.
Designed for:

  • People who have previously turned down the purchase of LTCi
  • Affluent- have set aside funds to ‘Self Insure’
  • Concerned about “Use it or lose it”
  • Concerned about increasing premiums
  • Want to maintain control of their money

Medically Underwritten SPIA: This is a single premium immediate annuity that provides a guaranteed lifetime income stream for your clients that are already receiving long-term care services. The income stream from the annuity can help maintain the level of quality care desired, whether at home, in an assisted living facility or a nursing home.
Designed for:

  • People that are currently receiving long-term care services
  • People with an existing pool of assets that are funding care
  • People who want to stop the hemorrhaging of funds from their portfolio as they use them to pay for LTC services.


For more education on LTC Planning, please call us at 610-430-6650

Or you can email