Husband 52 and Wife 50 wanted a long-term care plan that was paid for before they retired. They also wanted to make sure there was value in the plan should they not need care but wanted unlimited protection should they need care.
We structured a plan with 10 guaranteed level payments of $18,734. Meaning after the 10th payment, the plan is paid in full and no further premiums are due. The plan provides the clients with a $200,000 second to die death benefit which can be pulled out for long-term care at a rate of $8,000 per month per person until the benefit is used up. After that, the plan has a continuation of benefits that will continue to pay a monthly long-term care benefit per person for an unlimited amount of time meaning they never run out of benefit. The monthly benefit continues to grow over time so 30 years from now, the monthly benefit will be $14,206.76 per person for an unlimited amount of time.
This plan is structured so the clients will receive more than they paid in even if they never end up in long term care. Total premiums paid will equal $187,734, yet they are guaranteed to get at least $200,000 back tax-free in either death benefit or long-term care benefits. Their beneficiaries will get the death benefit minus any long-term care expense paid. And if they cancel their plan in the future, they will receive the cash value of the plan which grows each year.
This is a great example of how to fully fund an asset based plan over time and have an unlimited amount of long-term care benefit to cover you for the rest of your life. If you would like to learn more about these options, give us a call at 425-748-8188.