Husband (60) and wife (61) make and initial deposit of $102,000 into their asset based long-term care plan. This provides an initial death benefit of $202,140 which can be taken out for long-term care at a rate of $6,064 per month until this benefit is used up. The client’s initial deposit is also guaranteed to increase in value and has a cash surrender value of $137,654 at year 20. Meaning they can cancel this plan and walk away with this amount guaranteed.
The clients also choose a continuation of benefits rider for a guaranteed level premium of $3,722 per year. This option provides each a monthly benefit for long-term care that will increase by 2% each year. Meaning at year 20, they will each be entitled to $8,800 a month for long-term care. This policy also provides an additional $12,000 for medical care equipment (including home improvements needed for home care) and $12,000 for care giving training should they need that.
The benefits of this policy are limitless for long-term care. Their estate is guaranteed to receive the death benefit minus any long-term care expenses paid. This means if they never end up needing care, there will be a benefit paid. Premiums are guaranteed level and will go away once they start receiving long-term care benefits.
Let us know if you would like to learn more about plans like this, please contact our office at 425-748-8188, we will be glad to show you how we can design a plan to fit your situation.