MoneyGuard II vs. PremierCare Advangage
— Craig Davis on November 25, 2016
Hybrid LTC Comparison / 10 annual premium installments
In the coming months this blog will focus on many themes because there are nuanced differences with the better Hybrid products (we represent all of them). Which is best for you will depend on your age(s) financial goals, if you are married or have a partner, and if you would like or need 100% of your premium returned to you at anytime. With Hybrid’s, if you don’t use it, you don’t lose it. This means if you never need long-term care benefits your premium outlay,or most of it, will be returned to you while you are alive or your beneficiaries at your death.
In the examples below a 62 year old male and 58 year old femalelike the idea of spreading $10,000 annual premium contributions over ten years instead of making a single $100,000 premium contribution. We are comparing two of our favorite Hybrids, Lincoln Financial’s MoneyGuard II and Pacific Life’s PremierCare Advantage. It is interesting because if we made the same comparison for a 62 year old female or a 58 year old male, the comparison would be substantially different. The comparisons presented below are strikingly similar.
If you are considering self insuring, Hybrid’s are the BEST way to go. They can be 100% liquid. You will have had to invest your $10,000 for 10 years at 8.5% AFTER TAX to obtain the same benefit pool one of the insurance companies is guaranteeing in years 25. Of course it is a little more complex than that, and I will gladly explain if we have the opportunity to chat.
Other subjective criteria may come into play in terms of selecting a Hybrid company. The underwriting with one company is amazingly simple, with the other it is more cumbersome and time consuming. With one company the insured can get all of their money returned after year 1, the other in this example takes 10 years. We can get more nuanced too, which is why it is important if you are shopping to talk with an unbiased and knowledgeable broker. Are you shopping for yourself alone or do you have a spouse that may participate as well?
| Male Age 62 | Female Age 58 | |||||
|---|---|---|---|---|---|---|
| MoneyGuard II |
PremierCare Advantage |
MoneyGuard II |
PremierCare Advantage |
|||
| $10,000 | $100,000 | $100,000 | $100,000 | $100,000 | ||
| Annual Premium for 10 years | over 10 years | over 10 years | over 10 years | over 10 years | ||
| Money Back / Cash Available to You | ||||||
| Year 1 | $0 | $10,000 | $0 | $10,000 | ||
| Year 5 | $13,330 | $50,000 | $967 | $50,000 | ||
| Year 10 | $100,000 | $100,000 | $100,000 | $100,000 | ||
| Year 20 | $100,000 | $100,000 | $100,000 | $100,000 | ||
| Year 30 | $100,000 | $100,000 | $100,000 | $100,000 | ||
| Total Care Benefit Available | Long-Term Pool with (ROR) | Total Care Benefit Available | Long-Term Pool with (ROR) | |||
| Year 1 | $286,239 | $307,441 | $323,482 | $271,241 | ||
| Year 10 | $373,477 (15.9%) | $427,744 (18.6%) | $422,071 | $399,993 | ||
| Year 20 | $501,992 (9.0%) | $561,415 (9.8%) | $557,228 | $415,828 | ||
| Year 25 | $581,865 (7.7%) | $614,883 (8.5%) | n/a | n/a | ||
| Year 30 | $674,541 (6.9%) | $681,718 (7.3%) | $785,175 | $522,403 | ||
| Monthly Benefit Available | ||||||
| Year 1 | $3,113 | $3,182 | $4,167 | $3,510 | ||
| Year 10 | $4,062 | $4,614 | $5,438 | $4,458 | ||
| Year 20 | $5,459 | $6,206 | $7,308 | $5,512 | ||
| Year 25 | $6,328 | $6,842 | n/a | n/a | ||
| Year 30 | $7,336 | $7,638 | $9,821 | $6,661 | ||
| Income Tax Free Death Benefit | ||||||
| Year 1 | $112,068 | $76,383 | $100,019 | $84,261 | ||
| Year 10 | $160,000 | $100,000 | $195,000 | $100,000 | ||
| Year 20 | $131,000 | $100,000 | $152,000 | $100,000 | ||
| Year 30 | $112,068 | $100,000 | $124,000 | $100,000 | ||