Shopping Cart
Your Cart is Empty
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart

Becker & Associates



Get a "Two-for"- Life Insurance with Long Term Care

Posted on July 17, 2015 at 4:25 PM

Using your Life Insurance for Long Term Care Expense:

Life Insurance policies are ever changing to meet the needs of our ever changing society.  All the buzz is now on Long Term Care coverage, but if you've ever gotten a quote you know it is not cheap!  Also, what if you never need it?  Once you've paid the premium to the carrier for a Long term Care policy, it's GONE and you have nothing to show for it.  Though there are benefits to having a comprehensive LTC (Long Term Care) can spell out the benefits in a more precise way, add on riders for COLA (Cost of Living Adjustments), etc, but the fact remains that it's expensive and if you never use it, it's money down the drain. 

Do not mistake my message to mean LTC is not important!  It is VERY fact more important than ever, there are just more creative ways of getting it these days. 

Using a Life Insurance policy with a guaranteed Death benefit and adding a 4% LTC rider is a very interesting solution.  Let's use this example:  You are healthy enough to purchase a $500,000. face amount and you become ill enough or have an accident and meet the requirement to be able to tap into your policy for its LTC benefits (the requirement for ALL LTC policies is just about the same, whether a policy or a rider) is being unable to do at least 2 of the ADLs - Activities of Daily Living).  Using a $500,000. Death Benefit policy with the LTC rider of 4% per month = $20,000. per month available to you.  

Per the IRS, at this time the maximum amount you may receive from your policy on a tax free basis is $330 per day or $9.900. per month.  This is because the LTC benefit is essentially considered getting your Death benefit early.  Depending on your needs, whether it be paying for a facility, paying for homecare, paying a relative to take care of you, you may decide to take only the tax free portion from your policy, but the full 4% is still available. 

Then let's say you get better and return to life as normal in 6 months, you have taken or "used" (at $9,900. mo.) $59,400.00 of your Death Benefit thus reducing your policy's Death benefit to $440,600.  This amount will be passed on to your heirs tax free OR be available for another round of LTC usage.

If you are 70 1/2 years old and are receiving "RMD"s (Required Minimum Distributions) from retirement funds that you don't really need, you can turn taxable income into tax free money using this strategy!

In summary, you've used tax free death benefits to pay for your Long Term Care needs and the money you've invested in your Life insurance is still there! 

Example - A $500,000. Policy would cover the IRS maximum monthly LTC payment of $9,900. for 4.2 YEARS!

Some Statistics for the USA:  For someone with a 90-day Elimination Period, the lifetime chance of someone buying coverage at age 60 and using policy benefits was 35%. So, 35% will use their coverage and 65% will not. As you might assume, the decline is because during those first 90 days, some people will recover and some will die.

Here is some meaningful information on nursing home lengths of stays as published in the Association's 2008 LTCi Sourcebook. Remember, that most long-term care is actually received at home but there are still fewer statistics about home care utilization for "long-term care" needs. When we get relevant ones we will publish them for consumers to read.  Notice that the length of time that anyone stays in a Nursing Home is well under five years!  We must consider the time that most people need in home care too, please see "Long Term Care Info & Statistics" blog for more info.

Average Length of Stays (Nursing Homes)

5 years or more - 12.0%

3 to 5 years - 12.0%

1 to 3 years - 30.3%

6 to 12 months - 14.2%

3 to 6 months - 10.0%

Less than 3 months  - 20.0%

Average Length of Stay in Years

Female - 2.6 years

Male - 2.3 years

Married - 1.6 years

Single / Never Married - 3.8 years

Widowed - 2.3 years

Divorced / Separated - 2.7 years

Categories: Life,Death and Illness & Injuries Happen, Be Ready!, Life Insurance-Long Term Care included! Any Age

Post a Comment


Oops, you forgot something.


The words you entered did not match the given text. Please try again.


Reply Michaelvok
9:58 AM on December 8, 2022 
safe canadian pharmacy
Reply fear of god essentials
12:13 AM on December 8, 2022 
I simply needed to appreciate you again. I do not know what I would've achieved in the absence of the advice shared by you relating to this industry. It previously was a daunting circumstance for me personally, but taking note of the very well-written manner you handled it took me to leap with delight. I am just happier for your advice and thus believe you know what a powerful job that you're carrying out instructing most people all through your blog. I'm certain you've never got to know any of us.
fear of god essentials
Reply goyard outlet
12:12 AM on December 8, 2022 
My spouse and i were quite ecstatic that Emmanuel managed to do his investigation from the precious recommendations he obtained while using the weblog. It is now and again perplexing to simply possibly be giving out concepts some other people have been trying to sell. We really recognize we need the website owner to be grateful to because of that. Those explanations you've made, the easy web site navigation, the relationships you can give support to instill - it is many incredible, and it's helping our son and our family reason why that theme is satisfying, and that's truly pressing. Thanks for all the pieces!
goyard outlet
Reply jordan shoes
6:27 PM on December 7, 2022 
I not to mention my friends were found to be reviewing the excellent things found on the blog and then got a terrible feeling I had not expressed respect to the web blog owner for those tips. The men ended up for this reason passionate to read all of them and already have actually been tapping into these things. Many thanks for turning out to be so considerate and for obtaining variety of very good resources most people are really wanting to know about. My sincere apologies for not saying thanks to sooner.
jordan shoes
Reply bapesta
6:26 PM on December 7, 2022 
I want to point out my respect for your kindness for folks that need assistance with this concern. Your very own commitment to passing the solution all-around had become unbelievably significant and has truly made guys like me to realize their targets. Your amazing warm and friendly facts denotes this much a person like me and a whole lot more to my office workers. Many thanks; from all of us.
Reply supreme t shirt
12:39 PM on December 6, 2022 
A lot of thanks for all of your efforts on this website. Ellie take interest in engaging in research and it's simple to grasp why. Most people know all regarding the dynamic mode you provide good secrets by means of this website and even boost contribution from others on the content plus our own simple princess is actually discovering a whole lot. Take advantage of the rest of the year. You have been conducting a stunning job.
supreme t shirt
Reply hermes outlet
12:38 PM on December 6, 2022 
I truly wanted to write a brief comment so as to say thanks to you for those amazing recommendations you are showing here. My time consuming internet search has at the end of the day been honored with reasonable strategies to talk about with my friends and classmates. I 'd point out that many of us site visitors actually are rather blessed to dwell in a perfect website with very many special professionals with helpful concepts. I feel really privileged to have come across your entire web site and look forward to tons of more amazing minutes reading here. Thank you once more for a lot of things.
hermes outlet
Reply golden goose usa
12:37 PM on December 6, 2022 
I simply wanted to jot down a brief note in order to express gratitude to you for the remarkable ideas you are sharing at this website. My extended internet lookup has now been honored with wonderful suggestions to write about with my companions. I would tell you that most of us readers actually are extremely blessed to live in a fine network with so many lovely people with very beneficial pointers. I feel rather grateful to have discovered your entire web page and look forward to so many more enjoyable times reading here. Thank you once again for everything.
golden goose usa
Reply tenergys
9:05 AM on November 28, 2022 
north face mountain parka name hats lids mens merino wool long sleeve t shirts deep royal 1s adidas red bottoms tiffany setting with diamond band
Reply flowimg
6:58 AM on November 28, 2022 
moncler jacket blue mens kendrick lamar cortez nike sagan ceremony dresses for bride pandora thick rings boston red sox on field cap zelda
Reply listerful
5:12 PM on November 27, 2022 
michael kors polly crossbody infinity bangle pandora strawberry outfit aesthetic barcelona away shirt michael kors carmen extra small pouchette womens sierra down corduroy parka
Reply kychocolate
7:55 AM on November 27, 2022 
red bottom for babies yankees baseball jersey for cheap texas rangers baylor baseball hat boats black and brown girls air jordan 3 christian louboutin kate 100 patent
Reply fanclubes
2:40 PM on November 25, 2022 
pittsburgh pirates new era mlb clubhouse jersey pop 9fifty snapback cap tiffany puzzle ring purdue rondale moore jersey hazard away jersey white formal dresses
Reply thinkeathealthy
4:03 AM on November 25, 2022 
green off shoulder maxi dress designer coats moncler coach snap card case with butterfly print christian louboutin taralita slingback pandora stackable heart ring mothers day charms from pandora
Reply lialusin
8:39 PM on November 24, 2022 
pandora wedding rings set louboutin heels so kate among us skin pet hat rayban1971 jack wills cap lack of color carlo mack
Reply marvslater
9:17 PM on November 22, 2022 
summer shift dresses with sleeves lakers logo lebron fiorentina soccer jersey nike dolphins 91 cameron wake red womens stitched nfl limited afc 2017 pro bowl jersey maple leafs 19 joffrey lupul blue new stitched nhl jersey oakland raiders cowboy hat
Reply talkuo
11:31 AM on November 21, 2022 
prada pencil case black stylish outfits jordan 1 mocha pink moncler coat dog how can i tell if a coach purse is authentic long black mother of the bride dresses
Reply uppicfree
7:10 PM on November 20, 2022 
buffalo sabres 7 rick martin white throwback ccm jersey michael kors vanilla wallet h m long sleeve blouse pakistani suits sale love script ring pandora olive green red bottoms
Reply JosephElisy
11:18 PM on November 19, 2022 
avana cream finasteride buy
Reply webbirga
12:43 AM on November 18, 2022 
pandora wedding rings set louboutin heels so kate among us skin pet hat rayban1971 jack wills cap lack of color carlo mack