How does this strategy work?

Purchasing a stand-alone long-term care insurance policy and a life insurance policy is one option. However, your clients can purchase one policy to cover both needs.  Because someone turning age 65 today has almost a 70% chance of needing some type of long-term care service and support¹ this can be a cost-effective way to protect a client’s family and provide funds in case the client needs long-term care services at some point in the future.

Strategy in action

• Jennifer owns an Equitable Financial life insurance policy with the Long-Term Care Services^SM Rider.²
• She selects Death Benefit Option A with a face amount of $2,000,000.
• She chooses an acceleration percentage of 50 percent, meaning she can use up to 50 percent of her death benefit amount for qualified long-term care expenses. (She had the option to choose from 20-100 percent.)
• Her monthly benefit percentage is 1 percent.  She had the flexibility to choose 1 percent, 2 percent or 3 percent.  In this case, she can receive 1 percent of her death benefit for long-term care expenses each month.

Let’s see what could happen if she needed all, some, or none of the long-term care benefit.  In each case, you can see how much of the long-term care benefit she used and how much was left for her beneficiaries at her death.

 

There is an additional cost for the Long-Term Care Services^SM Rider, and it does have restrictions and limitations and is paid as an acceleration of the death benefit. Be sure to refer to the product specifications for further details.

Prospective client

• Needs life insurance protection
• Is looking for an affordable way to also cover potential long-term care expenses

Highlighted product(s) with this concept

VUL Legacy^SM

See all permanent protection products

BrightLife^® Grow

See all accumulation products