Case Study #3:  The Recently Divorced Grandfather

 

Even the best financial plans require occasional updates, and a life-changing event like divorce later in life could certainly necessitate some tweaking!  In this case study, we make the following planning assumptions:

 

  • Sam, age 55, is a recently divorced, grandparent.
  • He has substantial assets and plans to retire at 65.
  • Sam is concerned about becoming a burden on three children.
  • The death benefit for his children is now a secondary concern to LTC.
  • The policy has $250,000 death benefit, a $2,500 annual premium, and a cost basis $50,000.
  • He would “pay for care” with $100,000 of cash value in a Variable Life Universal Insurance policy purchased more than 20 years ago.

 

 

Now that Long-Term Care is a concern, which scenario would better address his planning needs?

By reallocating the cash value of a life insurance policy that is no longer needed, it's possible to create a substantial Long-Term Care Plan, with a variety of tax-free benefits......and in this case, it's better than ZERO out-of-pocket cost since the $2,500 annual premium is no longer necessary. 

 

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