DO YOU THINK LONG TERM CARE INSURANCE IS UNNECESSARY? THINK AGAIN.
Chance of experiencing a house fire: 1 in 1200
Chance of being in a car accident: 1 in 240
Chance of needing long-term care: 1 in 2
You wouldn't consider going without homeowners and auto insurance - why risk being uninsured for long term care?
ESTIMATED COST OF LONG TERM CARE Daily:
2013 $210/Day 2020 $315/Day 2027 $420/Day 2034 $630/Day 2041 $840/Day 2048 $1,260/Day
HOW DO LONG TERM CARE RIDERS WORK?
When a long-term care rider is added to a policy, the death benefit can be spent on long term care.
Accelerations for long term care draw down the death benefit dollar for dollar.
The long-term care benefits are received income tax free.
Any remaining death benefit is also received income tax-free.
No matter what happens, the full benefit will be distributed to the owner or beneficiaries.
Mary is 55 years old and has two children. Long Term Care (LTC) has been a big concern for Mary because her mother had a stroke and lost all of her savings and spent her nest egg. Mary wants to protect herself and her children from the financial burden that an unforeseen LTC expense may cause. She decided to set up a $500,000 life insurance policy with a LTC rider. This provided her a pool of money of $500,000 for LTC coverage. If there is a LTC need, Mary can receive accelerations from the policy which reduce the death benefit dollar for dollar. Mary is insured for LTC expenses if they are needed and any remaining death benefit will transfer to her children income tax free.