One way to address concerns over the cost of LTCi is to highlight solutions which provide multiple benefits.
Today many carriers offer products providing life insurance protection along with living benefits, that include access to tax favored cash values and access to the death benefit, while living, to pay for long term care expenses.
For example a 45 year old preferred non-smoking male can buy a $500,00 Universal Life policy to protect family income, pay down a mortgage and provide for college expenses in the event of an untimely death for just $299 a month. Properly structured, this policy can also build cash value throughout the life of the contract (endow at age 120) based on current rates and charges.
And with the addition of a Long Term Care rider for just $23.75 per month, this client can access up to $333 per day for qualifying Long Term Care expenses. In this case, the Long Term Care rider accelerates the death benefit at 2% per month if the insured can’t perform 2 of the 6 activities of daily living – that equates to a maximum Long Term Care benefit of $10,000 per month for 50 months.
Next time a client or prospect says, “Long Term Care is too expensive,” be sure to remember the example above. Long Term Care can be very affordable. And it’s not a “use it or lose it” proposition when attached to a life product that provides death benefit and access to tax favored cash value.
For more information please contact your LTCi Sales Rep.