The Four "L's" of Long-Term Care Insurance

I hope you’ll join me for my next free webinar on July 28^th at 7 pm Eastern. I’m repeating a topic that was very popular, The Four L’s of Long-Term Care Insurance, where I’ll explain how long-term care insurance works and break it down in terms that are easy to understand.  Here is a preview of the Four L’s.

The first “L” is liquidity.  A long-term care insurance (“LTCI”) policy provides access to tax-free funds if care is needed.  This can be huge if the need for care arises suddenly, as it often does.  Some policies require you to wait ninety days before payments will commence, but there are others that will allow for payments to start as soon as a claim is triggered.

The second “L” is leverage.  When you put funds into an LTCI policy, the amount available for care is multiplied tremendously from day one.  Even if you pay premiums monthly over time, you have access to your full benefit after you’ve paid a single month’s premium.  As an example, I purchased a policy with premiums of $1,000 per month, payable for ten years.  After making a single premium payment, I had access to a pool of funds totaling $539,000, accessible over seven years. 

The third “L” is legacy. The policy I mentioned previously provides for growth over time.  If I need care when I’m 83, my pool of available funds will have grown to $1,270,561.  If I end up needing care, it gives me great comfort to know that I wouldn’t have to use all of my own money to pay for it.  I can shield more than $1,000,000 of my own assets from being spent for my care, and if I never need care, some of that money will be paid out to the people I love when I pass away. This allows me to leave a greater legacy.  

The fourth “L” is love.  I can’t think of a greater gift to your future self or the people you love than putting a plan in place should you ever need care.  By having funds available to cover some or all of the cost of your care, your family members can have the luxury of being your companions and not your caregivers.  That is priceless.

I hope you’ll join me on July 28^th.  If you can’t make it live, please register and I’ll send you the replay. Link