Long Term Care Insurance Leverage

Couple, age 55:

• Beginning Daily Benefit: $250
• Annual Benefit Increase: 5% Compound
• Benefit Period: 10 Years Shared (5 years each)
• Annual Premium: $5,200

At year 25 – age 80:

• Total premiums paid: $130,000
• Monthly Benefit: $ 25,400
• Benefit Period to recapture premiums paid: 5.1 months

Should spouses use all years (10), total benefit received (tax free): $3,048,000

• Should this occur, the benefits received will be 23.4 times the total premiums paid.

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