The Life Insurance Triple Threat

The Life Insurance Triple Threat

The triple threat stance in basketball is when a player can choose from three moves: shoot, drive or pass. It allows the offense to adapt to whatever the defense throws their way – versatility that spells danger for an opponent.

But apply that same versatility to a permanent life insurance policy with a long-term care rider and you have an attractive deal.

I call it the triple threat of life insurance:
  • Threat #1 – Die too early – there’s a death benefit
  • Threat #2 – Live too long – there’s cash value
  • Threat #3 – Need care – there’s a long-term care benefit

Most people understand the need for Life Insurance Coverage – whether you’re protecting your family, business interests or supplementing retirement income.

But now some companies are adding additional value with a benefit towards possible long-term care needs – providing viable options to leverage your dollars no matter what life throws your way.

Let’s take a look at a hypothetical, healthy, 40-year-old male who contributes $500 a month into a whole life insurance policy with the long-term care rider funded over 25 years. In this scenario, the rider on the policy is only 4% of the premium!

At age 80*
  • Cash Value: $502,591
  • Death Benefit: $661,478
  • Long Term Care Benefit: Maximum monthly benefit of $9,860 for 62 months
At age 90*
  • Cash Value: $781,497
  • Death Benefit: $898,583
  • Long Term Care Benefit: Maximum monthly benefit of $9,860 for 85 months

Keep in mind that these policies can be structured many ways. Depending on your clients’ needs, they can favor cash value, death benefit or the long-term care option.

Contact your Life Insurance Specialist for detailed information about a plan that meets your client’s needs and budget.

*Numbers are based on current dividend rates