Owners of old cash value life policies might consider a tax-free exchange to Linked Benefit Insurance. Be sure that old policy is free of surrender charges.
If less than $100,000: Insurance may not be affordable.
$100,000-$500,000: Consider traditional LTC insurance
$500,000-$1,000,000 (Less than $50,000 cash per person): Consider traditional LTC insurance or Linked Benefit Insurance with annual premiums.
$500,000-$1,000,000 (More than $50,000 cash per person): Consider traditional LTC insurance first, then Linked Benefit Insurance.
Over $1,000,000: Consider traditional LTC insurance first, then Linked Benefit Insurance. Discuss advantages of Linked Benefit Insurance if client feels they have sufficient funds to pay for their own long-term care.
Step Three: Listen to client
Traditional LTC insurance buyers usually...
Seek to preserve dignity and independence.
Do not want to become a burden to their children.
Want freedom to choose their own care providers.
Are concerned about outliving their retirement savings.