The Advisor's View of Long-Term Care Planning

Limited Pay Premium LTC Insurance - what's available now

Posted by Tom Riekse Jr | Jan 7, 2016 3:39:00 PM

Limited Pay Long-Term Care 

What's better than the peace of mind of owning LTC Insurance? Not paying premiums.  

Usually the only way to avoid premiums is to be receiving LTC benefits - and most policyholders would prefer that day occur in the far future!  However, there are options to have premiums paid up prior to the time when benefits will be needed.  There are many reasons why having premiums paid up is advantageous to LTC policyholders:  

  1. They don't have to worry about lapsing policy premiums 
  2. Premiums are paid during peak earnings year and may be deductible for business owners.
  3. Depending on the product it could eliminate the impact of in-force rate increases

If someone expresses an interest in limited pay LTC plans, here is a list of some of the plans and options. Click on a carrier name to get more product details.

Product Type of Product Limited Pay Options
Nationwide Care Matters Linked Life/LTC Single, 5-pay, 10-pay
Lincoln Money Guard Linked Life/LTC Single up to 10-pay
OneAmerica Asset Care Linked Life/LTC Single, 10-pay, 20-pay
LifeSecure LTC Standalone LTC 10-pay
John Hancock Performance LTC Standalone LTC Varies (see below)

You'll notice that the last product, John Hancock Performance LTC, offers a variable limited-pay. That's because the product offers policyholders the opportunity to pay a little more premium now in anticipation of $0 premiums in the future.  They are able to have that happen through "flex-credits" as illustrated below:


For people looking for a lot of flexibility this approach makes a lot of sense.   Request a Performance LTC Kit


Topics: Advice articles about planning

Written by Tom Riekse Jr

Tom Riekse, Jr., ChFC, CLU, CEBS is the Managing Director of LTCI Partners. He has been working in the long-term care insurance business since 1991 with an emphasis on communicating the value of LTC planning to advisors, employers and consumers. He has primary responsibility for all marketing and technology initiatives at LTCI Partners, and has worked closely with carriers and vendors to make LTC Insurance easier to sell and enroll. Tom received his undergraduate degree in from Hope College, Holland Michigan. He subsequently achieved his MBA at the University of Illinois at Chicago, with a concentration in finance and marketing. He holds the Certified Employee Benefit Specialist designation from the International Foundation of Employee Benefit Plans and the Wharton School and his Chartered Financial Consultant from the American College.

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