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 utilizingoriginal 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.
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