LTC Explained – Video 10

At-a-Glance Summary

(“Today’s Menu of Long-Term Care Solutions” – Karp Loshak LTC Insurance Solutions)

1. Traditional Stand-Alone Policies

  • Annual-pay premiums you keep until you claim.
  • Fully customizable: pick your daily benefit, elimination (waiting) period, and inflation rider (simple or compound, 0–5% with multiple caps).
  • Extras that matter: “shared-care” riders for couples, optional dividends, federal/state tax deductions, and Medicaid “partnership” protection.
  • Premiums aren’t guaranteed but are now priced for today’s real claims experience—far more stable than early-generation policies.

2. Asset-Based / Hybrid Plans

  • Built on a life-insurance chassis with an LTC extension (§7702B triggers).
  • Either / or value: use the pool for care, or heirs receive the premiums back as a death benefit.
  • Premiums are guaranteed and finish quickly (single-pay, 5-pay, 10-pay, or 20-pay).
  • Ideal for 1035 exchanges: roll cash value from old life or annuity contracts, avoid taxes, and instantly fund LTC leverage.

3. Life Insurance with an LTC Rider

  • Start with a larger death benefit, then accelerate it—e.g., 2% per month—to pay for care.
  • Design flexibility: whole life, UL, index UL, second-to-die, continuous or limited pay.
  • Caution: insist on a true §7702B LTC rider, not a generic “chronic-illness” (101g) rider whose benefits and math can vary widely.

4. Solutions for Hard-to-Insure Candidates

  • Health issues? A single-premium annuity with an LTC rider (no medical underwriting) can still create lifetime benefits—especially useful when one spouse is uninsurable.
  • Joint annuity contracts (where available) blend ages to cover both partners.

Key Takeaways
Whether you need sheer flexibility, guaranteed premiums, a death-benefit backstop, or a path around underwriting hurdles, today’s LTC marketplace offers a tailored chassis. Understanding these four categories equips you to match the right plan to your health, budget, and legacy goals.