How Can I Fund LTCi Premiums?
Below are six alternatives for funding LTCi premiums:
 
  1. Buy a Single Premium Immediate Annuity using the payments to pay premiums.  In setting it up, payments will be guaranteed, but LTCi premiums would not be, therefore we suggest that the SPIA payments be 15% more then current premium needs.

  2. Buy a Single Premium Deferred Annuity and take 10% free withdrawals from the contract to fund premium payments - again, build in a rate increase of 15% to come up with the amount of deposit necessary.

  3. Use CD's to help pay premiums; interest is usually minimal and not allocated to any specific purpose.

  4. Reduce disability insurance amounts at increasing ages or dropping the policy at age 65 and use existing premium payments for LTCi.

  5. Have siblings together share the cost of LTCi for the parents and grandparents.

  6. For business, establish Group (multi-life) carve outs for executives, fully employer-paid, tied to longevity, using end-of-year bonus money.

As with any financial decision of this nature, we suggest you consult your tax account for possible tax implications.

Although not a funding option, you may save up to 10% on LTCi premiums if you are part of an eligible group or association.  For additional info, see our Group page.

For more info on funding LTCi premiums, or if you have other questions, please call us at 631-393-5039 or email us at info@ltcamerica.com.  

 

 
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LTC America, LLC · 8110 Cavalli Way, Lake Worth, FL 33467

phone 880-380-5443· fax 561-880-6880 · email: info@ltcamerica.com

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