55-year-old Wants $8,000/month of Long-term Care Coverage at age 80 (without giving up accessibility)

(don’t forget to checkout the video of this blog too)

Long-term care coverage is expensive…. but what’s more expensive is an actual long term care event.

One very important element of financial planning is ensuring that you don’t run out of money in retirement.

That’s why I often talk about providing an element of guaranteed income to your retirement plan.

But, to ensure that that income is enough to last you all the way through retirement, you have to ensure that you don’t have a LARGE, unexpected expense…

And that’s exactly what a long-term care event is…

…. a very large expense that can wipe out almost anybody’s retirement savings very quickly.

The good news is that nowadays, there are ways to protect yourself and your retirement income from long-term care (that are much more compelling than they used to be).

Here’s an example of how it works for a typical 55-year-old client:

✅ You put $100k into a long-term care contract (with minimal underwriting)

You can also take ALL of your premium back out at any point giving you complete and total accessibility!

✅ As soon as the policy is issued you have $207k of long-term care coverage (which doubles as a tax-free death benefit as well)

This long-term care amount is guaranteed for life (even if the market goes down for 25 consecutive years).

✅ The contract is indexed to the market & is reasonably expected to earn 4–7% per year for the next 25+ years

These are safe, predictable returns that help leverage the positive returns of the market to accumulate long-term care dollars.

This grows the value of the contract, which also includes cash value that can be used as part of a tax-free retirement strategy.

✅ This means that at 80 your expected long-term care value is $390,000 (which ends up being about $8200/month of LTC coverage)

This give you over $8,000 of supplemental income that allows you to protect your retirement income from being eaten away in a long-term care facility (or through home health care costs)…

And Remember, if you don’t use it for long-term care, it will transfer to your loved ones completely tax free.

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