Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Universal Life for Long Term Care Insurance?
Old 02-28-2008, 12:07 PM   #1
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 168
Universal Life for Long Term Care Insurance?

I saw an interesting blurb in my Sound Mind Investing newsletter this month about long term care insurance:

"One LTC option that is rarely covered in the media is utilizing
a Universal Life Insurance policy with a long-term care rider.
There are only a few companies that offer this option, but I think
it is one of the best solutions for those with “rainy day” or “just
in case” money. Consider this example, utilizing the MoneyGuard
product offered by Lincoln Life. A 65-year old woman has
$300,000 in savings, CDs or even an old life insurance policy to
pay for long term care in the future if she needs it. An option
could be to reposition $100,000 of this asset in MoneyGuard
through a direct deposit (or 1035 tax-free exchange if it is cash
value from an old life policy). Two benefits are realized by doing
so: the first is a death benefit of $166,406; the second is a longterm
care benefit of $83,203 a year for six years. This equates to a
daily LTC benefit for home health, nursing home, assisted living,
and/or adult day care of $228, providing her with a total of
$499,218 in long-term care benefits. That’s nearly 500% of her
original premium payment."

Has anyone ever explored this kind of option for LTC? Do you think it could make sense for people who do not have enough assets to self insure or pay the premiums for LTC insurance, but are not broke and won't qualify for medicaid? It is another worry for me with planning a 30-40 year retirement.
__________________

__________________
David

I get up at 7 yeah, and I go to work at 9. Got no time for livin yes I'm workin all the time. Seems to me I could live my life a lot better than I think I am. I guess thats why they call me the Working Man.
DJRR is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-28-2008, 12:13 PM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,139
Using life insurance to cover the costs of LTC has been discussed a number of times. See the LTC FAQ section of the forum, including this thread.
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 02-28-2008, 12:22 PM   #3
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 168
Quote:
Originally Posted by REWahoo View Post
Using life insurance to cover the costs of LTC has been discussed a number of times. See the LTC FAQ section of the forum, including this thread.
Thanks REWahoo. I must have been search impaired today
__________________
David

I get up at 7 yeah, and I go to work at 9. Got no time for livin yes I'm workin all the time. Seems to me I could live my life a lot better than I think I am. I guess thats why they call me the Working Man.
DJRR is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
More on long term care insurance.... ziggy29 Health and Early Retirement 25 01-30-2008 12:36 PM
Long Term Care Insurance udenmkh Hi, I am... 1 10-19-2007 07:13 AM
Long Term Care Insurance Dawg52 FIRE and Money 44 10-18-2007 09:31 PM
Long Term Care Insurance stephenandrew Young Dreamers 11 08-13-2007 05:17 AM
Long term life care insurance light FIRE and Money 2 03-28-2007 06:02 PM

 

 
All times are GMT -6. The time now is 12:18 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.