Sample Long-Term Care Planning Illustrations

These four illustrations show how the same guaranteed long-term care strategy can be designed at different protection levels — from mainstream planning to concierge-level coverage. Every illustration is based on a healthy California couple, age 50, and demonstrates how benefits, death benefits, and premiums change as protection increases.

Four Planning Levels. One Objective. Lifetime Protection.

Read them as a ladder — each step adds room above tomorrow’s cost of care.

• $15,000 monthly benefit (per insured): designed to help cover the cost of a semiprivate room.
• $20,000 monthly benefit (per insured): designed for partners at the Big 4, physicians, attorneys, executives, business owners, and other professionals seeking protection at private-room cost levels.
• $40,000 monthly benefit (per insured): concierge-level planning for affluent families and high-net-worth business owners who want the highest level of long-term care protection.
• $40,000 monthly benefit with 3% compound inflation: designed for families who expect care costs to continue increasing over the next 30 to 40 years.

What Your Illustration Really Shows

One structure, four levels — side by side for a 50-year-old couple, guaranteed at issue age 50.

Most people compare long-term care designs on premium alone. The premium, though, is not what is actually at risk. Each of these policies builds a guaranteed cash value from the first year, and that value is available to you by loan. What remains — the single premium less that guaranteed cash value — is the net capital at risk.

Read against today’s cost of care, that figure is remarkably small. In every illustration below, the net capital at risk represents roughly three to four months of care at the benefit level being purchased. Beyond that point, the insurance company continues paying eligible long-term care benefits for life. Every figure shown is guaranteed at issue and does not depend on dividends, interest rates, or market performance.

¹ Net capital at risk = one-time single premium less the guaranteed cash value at the end of Year 1. The Year-1 cash value is guaranteed and available by policy loan.

² Equivalent months are measured against the combined (joint) monthly benefit shown on line 2. Measured against a single insured, the same capital represents roughly five to eight months of today’s care.

* Potential tax-deductible LTC premium is the long-term care premium component identified in the illustration. It is the base on which a deduction may be calculated — not an amount deductible in a single year. Deductibility depends on ownership and business structure and on annual limits set by the IRS. Consult your CPA or tax advisor.

Guaranteed gain = guaranteed death benefit less the one-time single premium. All guarantees are subject to the claims-paying ability of the issuing insurer.

Every level is fully funded by a single premium — no further premiums are ever due — builds guaranteed cash value from day one, and pays for extended care with no time limit and no benefit cap.

Which Illustration Fits You?

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
An executive or partner at the Big 4	$20,000 / month
An affluent family	$40,000 / month
A high-net-worth family planning decades ahead	$40,000 / month with 3% compound inflation

These illustrations are designed to help you choose the appropriate level of protection — not the policy itself. Once a planning level is selected, every illustration is customized for your age, health, objectives, and ownership structure.