Not “Use it or lose it” LTC

Financial PlanningInsurance Planning

Aug 25

Written By Jay Kadlec

Smart Long-Term Care Planning

70% of retirees will need long-term care (LTC), yet most are unprepared for the costs:

Nursing home: $100k+/year
Home health aide: $60k+/year

3 Ways to Prepare

Traditional LTC Insurance
- Pays for care (home, nursing facility)
- Premiums rise over time; use it or lose it
Hybrid Life Insurance/LTC Policies
- If unused for care, pays the death benefit to heirs
- Fixed premiums; no wasted money
Self-Funding
- Requires $500k+ dedicated savings
- Risk: Drains retirement funds fast

How a Hybrid LTC/Insurance Works

Growth Without Risk
- Earns interest linked to markets (e.g., S&P 500)
- Principal protected from losses; caps on gains
LTC "Doubler" Benefit
- Income doubles if LTC is needed (e.g., $3k → $6k/month)
- No separate LTC premiums – built into the annuity
Pension-Like Income
- Optional lifetime payouts, enhanced if LTC triggers

Who It’s For

✅ Ages 55-70 seeking safe growth + LTC coverage
✅ Those wary of traditional LTC insurance (rising costs, "use it or lose it")
✅ Families wanting heirs to inherit unused funds

Key Considerations

+ Market-proof growth
- Lower upside than stocks
+ LTC coverage without new premiums
- Surrender periods (5-10 yrs)
+ Income possible during surrender periods
+ Typically able to do free partial withdrawals during surrender period
+ Income doubles if LTC needed
+ No medical underwriting needed

Act Early: Best purchased at 55-65 before LTC risk rises. Pair with hybrid life/LTC insurance for maximum protection.

Want to see if this fits your plan? Request a personalized illustration from your Chalk Money Financial Planner.

Let's Chalk

Advisory Services are offered through Chalk Money, LLC, a DBA of Forefront Advisor Network. The foregoing content reflects the opinions of Jay Kadlec and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions, or forecasts provided herein will prove to be correct. All information or ideas provided should be discussed in detail with an advisor, accountant, or legal counsel before implementation. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful.

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Jay Kadlec

“Hi, I’m Jay Kadlec, CFP® – Certified Financial Planner and Owner of Chalk Money, LLC.

First and foremost, my team and I are teachers. We show you what proper planning can avoid or lessen; from wealth and retirement to estate, tax, and insurance. We then help ensure your plan is sound and understandable. Clients trust us for our transparency, integrity, robust knowledge, and personalized approach.

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