THE AFFLUENT CLIENT

Why carry the risk of self-insuring when the cost of one year of LTC coverage can have lifetime benefits and, if the LTC policy is never utilized, the insurer pays more than the premiums paid?

SINGLE PAY PREMIUM EXAMPLE FOR A 50-YEAR-OLD COUPLE

The cost of a semi-private room in a skilled nursing facility is $12,000 a month in the San Francisco Bay area.

If LTC is Not Needed

The total cost for a year of LTC for joint insureds is                          $288,000

The single one-time LTC premium for a 50-year-old couple is         $234,408

If LTC is never needed the beneficiary receives                                  $400,000

The produces a guaranteed gain of                                                      $165,592

If LTC is Needed

The single one-time premium for a 50-year-old couple is                $234,048

The starting cash surrender value is                                                     $158,288

The net premium cost for both joint insureds is                                   $75,760

If the joint insureds need care for ten years the insurer will pay   $2,400,000

Also, the policyholders may borrow against the cash surrender value of the policy at a cost of 8% per annum.

In short, LTC insurance is always a WIN-WIN for the affluent client!