Sample Long-Term Care Planning Illustrations
Four sample illustrations for a healthy California couple, age 50 — and what the numbers actually show.
Every illustration on this page is funded by a single premium. No further premiums are ever due, guaranteed cash value builds from the first day, and extended care is paid with no time limit and no benefit cap.
The number most families look at first is the premium. It is the wrong number. A large part of that premium is returned to you as guaranteed cash value from day one, so the capital genuinely at risk is far smaller — and at every level below, it comes to less than four months of the coverage it buys.
Read them as a ladder — each step adds room above tomorrow’s cost of care.
One structure, four levels — side by side for a fifty-year-old couple, guaranteed at issue age 50.
| Guaranteed at age 50 | Illustration 1Semiprivate | Illustration 2Private Room | Illustration 3Concierge · Level | Illustration 4Concierge · 3% Compound |
|---|---|---|---|---|
| 1. Monthly benefit per insured | $15,000 | $20,000 | $40,000 | $40,000 |
| 2. Combined monthly benefit (jointly) | $30,000 | $40,000 | $80,000 | $80,000 |
| 3. Death benefit | $360,000 | $480,000 | $960,000 | $960,000 |
| 4. One-time single premium | $203,900 | $271,867 | $447,553 | $515,530 |
| 5. Less: Year-1 guaranteed cash value | $85,954 | $114,605 | $229,210 | $229,210 |
| 6. Net capital at risk | $117,946 | $157,262 | $218,343 | $286,320 |
| 7. Equivalent months of coverage | 3.9 months | 3.9 months | 2.7 months | 3.6 months |
| 8. Long-term care benefits guaranteed | Lifetime · no cap | Lifetime · no cap | Lifetime · no cap | Lifetime · no cap |
| 9. Potential tax-deductible LTC premium* | $121,676 | $162,235 | $228,289 | $296,266 |
| 10. Guaranteed gain if care is never needed | $156,100 | $208,133 | $512,447 | $444,470 |
Lines 6 and 7 are the figures most illustrations leave out. Net capital at risk is the single premium less the guaranteed cash value available from day one. Equivalent months of coverage expresses that capital in months of the combined monthly benefit the policy provides. On a single-insured basis the same capital represents between five and eight months.
*The potential tax-deductible long-term care premium is the long-term care portion of the single premium — the base on which any deduction is calculated. It is not an amount deductible in a single year. Annual limits apply and eligibility depends on how the policy is owned and paid for.
Fewer than four months of care, committed once — in exchange for benefits guaranteed for life.
Illustration 1 · Semiprivate
Designed for couples planning for semiprivate care
The mainstream entry point to guaranteed lifetime protection.
Long-term care coverage: Lifetime · no cap • Year-1 guaranteed cash value: $85,954 • Net capital at risk: $117,946 • Equivalent months of coverage: 3.9 months
Every payment option purchases exactly the same guaranteed benefits. Choose the funding schedule that best matches your objectives.
| Payment Structure | Premium |
|---|---|
| Single pay (one-time) | $203,900 |
| 5-Pay | $58,262 / yr |
| 10-Pay | $29,686 / yr |
| 20-Pay | $17,986 / yr |
| Pay to age 95 | $12,762 / yr |
All structures guaranteed never to increase.
Illustration 2 · Private Room
Designed for partners at the Big 4, physicians, attorneys, executives, and business owners
Protection at private-room cost levels, for professionals seeking a wider margin than mainstream coverage provides.
Long-term care coverage: Lifetime · no cap • Year-1 guaranteed cash value: $114,605 • Net capital at risk: $157,262 • Equivalent months of coverage: 3.9 months
Every payment option purchases exactly the same guaranteed benefits. Choose the funding schedule that best matches your objectives.
| Payment Structure | Premium |
|---|---|
| Single pay (one-time) | $271,867 |
| 5-Pay | $77,683 / yr |
| 10-Pay | $39,581 / yr |
| 20-Pay | $23,981 / yr |
| Pay to age 95 | $17,016 / yr |
All structures guaranteed never to increase.
Illustration 3 · Concierge · Level
Concierge planning for affluent families and high-net-worth business owners
The highest level of protection, funded once at today’s cost of care.
Long-term care coverage: Lifetime · no cap • Year-1 guaranteed cash value: $229,210 • Net capital at risk: $218,343 • Equivalent months of coverage: 2.7 months
Every payment option purchases exactly the same guaranteed benefits. Choose the funding schedule that best matches your objectives.
| Payment Structure | Premium |
|---|---|
| Single pay (one-time) | $447,553 |
| 5-Pay | $133,536 / yr |
| 10-Pay | $66,947 / yr |
| 20-Pay | $39,977 / yr |
| Pay to age 95 | $28,124 / yr |
All structures guaranteed never to increase.
Illustration 4 · Concierge · Inflation-Protected
Concierge planning for high-net-worth families looking decades ahead
Concierge-level protection that grows with future care costs — for families who expect those costs to keep rising over the next thirty to forty years.
Long-term care coverage: Lifetime · no cap • Year-1 guaranteed cash value: $229,210 • Net capital at risk: $286,320 • Equivalent months of coverage: 3.6 months
Every payment option purchases exactly the same guaranteed benefits. Choose the funding schedule that best matches your objectives.
| Payment Structure | Premium |
|---|---|
| Single pay (one-time) | $515,530 |
| 5-Pay | $149,652 / yr |
| 10-Pay | Available on request |
| 20-Pay | Available on request |
| Pay to age 95 | Available on request |
All structures guaranteed never to increase.
Depending on how the policy is owned and paid for, part of the long-term care premium may qualify for favorable tax treatment. Annual limits apply, and the result turns on your business structure. Qualified long-term care benefits are generally received income-tax-free. Consult your CPA or tax advisor regarding your specific situation.
Find the starting point that matches your situation — then we tailor the details.
| If You Are… | Start Here |
|---|---|
| Planning for typical retirement | $15,000 / month |
| Executive or partner at the Big 4 | $20,000 / month |
| Affluent family | $40,000 / month |
| High-net-worth family planning decades ahead | $40,000 / month with 3% compound inflation |
These illustrations help you choose the level of protection — not the policy itself. Once a level is selected, every illustration is customized to your age, health, objectives, and ownership structure.
Every illustration is customized to your age, health, family objectives, business structure, and desired level of protection. Request a one-page personalized illustration. The discussion takes twenty minutes and is complimentary.
(925) 708-6501 Request Your Personalized IllustrationReviewed and prepared personally by Withbert (Bert) W. Payne, CPA, CGMA, FCA — independent and carrier-neutral.
These are sample illustrations for educational purposes and are not an offer of coverage. Figures assume a healthy fifty-year-old California couple and vary by age, health, underwriting, and policy design. Coverage is subject to medical underwriting and policy availability. Guarantees are subject to the claims-paying ability of the issuing insurer. Benefits are generally income-tax-free; consult your CPA or tax advisor regarding your circumstances. Withbert W. Payne is a licensed insurance broker in California (CA License No. 0E90257). This is a solicitation for insurance.
