Long Term Care Funding Strategies

Are you looking for a smart strategy to fund your long-term care insurance premiums? Well, you should know that long-term care insurance is not for everyone but it’s a good fit for those with assets to protect. If your assets are $ 100,000 and above worth assets, you should consider having long-term care insurance plan. When buying long-term care insurance you should find premiums that are affordable for you even after retirement.


Those who have a pension are lucky since they can pay for long term care insurance with their pension.

Interest Earned

Reuben has a portfolio of $600,000, made up of $250,000 bonds, $250,000 stocks, and $100,000 in CD (earning at 4%). The only way to protect the entire portfolio from the long-term care high cost is by using a portion of the interest on $100,000 to pay for long term insurance premiums.

For 4% on $100,000 Reuben will earn $4000 in interest per year. Take a portion of the interest and Reuben can use it to fund his long-term care insurance and this one move creates a pool of money. Approximately $700,000 could be used on Reuben’s long-term care or that of his spouse.

This means that Reuben will still have his $600,000 portfolio and additional $700,000 in long-term care insurance .This long-term care insurance will pay for both Reuben and his spouse’s future long-term care needs. In case Reuben and his spouse need long-term care in future the funds will come from insurance company’s reserves. When Reuben uses a portion of the interest from one of his investments he will protect his portfolio that he has worked extremely hard to build up.

By having a good long term care insurance plan you are able to safeguard your own future nest egg and that of your family. LTC Key helps you find premiums that are affordable and suitable for your needs. We hook you up with no-strings-attached quotes from the top 6 blue-chip carriers. This way, you can make a sound decision regarding what plan you want to buy right from your home.