Life/LTC Case Example.

Posted by on Jul 30, 2010 in Featured Articles. | 0 comments

Life/LTC Case Example.

Recently, we showed a client who owned a MetLife policy that was issued in 1994, how to take the same existing premium and apply it to a new product that incorporates Long Term Care features.  We used the remaining cash value and did a tax free exhchange(1035) of approximately fifteen thousand dollars from existing policy, to a new policy that provides a death benefit to her estate and a living benefit in the form of Long Term Care payments.

The breakdown was as follows; Age 60 female, standard health, non-tobacco.  Fifteen thousand dollar 1035 exchange, into a protection universal life policy with a death benefit of two hundred thousand.  For an annual premium of two thousand, three hundred dollars per year.  She is eligible to be reimbursed up to two hundred and sixty six dollars  per day, for long term care costs(or eight thousdand dollars per year!) to pay for home based or facility care.  That means if she needs LTCI-she has it.  If she does not need the LTCI-then the family is guaranteed to a refund of the premiums in the form of the death benefit.  Request more information at

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