A Better Way to Self-Insure

(explaned in 6 easy steps)

Step One

A 58 year old decides to reposition $100,000 from an underperforming asset. He makes 5 annual premiums of $20,000 into a Hybrid insurance policy.

Step Two

At the end of year 6 he can always get his $100,000 back and should he die $176,000 will be paid income tax-free to his beneficiaries.

Step Three

The $100,000 ($20,000 for 5 years) initially leverages into a $400,000 long-term care benefit.

Step Four

When he is most likely to need long-term care, the $100,000 ($20,000 for 5 years) is leveraged into a $1,000,000 long-term care benefit.

Step Five

He would have had to invest his original $100,000 at 7.4% after-tax to generate the same $1,000,000 long-term care benefit.

Step Six

And if he never needs long-term care his beneficiaries will receive a tax-free death benefit in excess of what his original premium was.


Think about it, for those who were planning to self insure who wouldn't want to consider a hybrid plan?

A new generation of hybrid asset protection alternatives to traditional long-term care insurance (such as MoneyGuard and PremierCare Advantage) are becoming increasingly popular for wealth transfer and long-term care planning. Unlike traditional long-term care insurance, premiums are fixed and can never be increased. Perhaps most importantly, if long-term care benefits are never used, premium dollars are not lost. If you don’t use it, you don’t lose it. Premiums can always be returned to the insured, at anytime. At death, premium payments will be returned to beneficiaries tax-free if the long-term care component is not utilized.

The most efficient hybrid design combines life insurance with a long-term care benefit. Premium dollars are significantly leveraged and, depending upon age, can deliver 5-10X the premium expenditure in the form of long-term care benefits. Remember, if you never use long-term care your premiums will be returned to you or your beneficiaries. This is why Hybrids are fast becoming the asset class of choice among savvy people concerned about the potentially devastating consequences of long-term care risk.

RetirementGuard is an independent broker and consultant specializing in long-term care risk solutions. We work with some of the most prestigious not-for profit organizations in the United States; and we work with individuals like you. Without obligation- and with no cost to you-we can provide a thorough overview of the most competitive Hybrid companies available to you and help you find the right policy fit. RetirementGuard does not charge fees; we are paid by an insurance company only if you obtain insurance through us.