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?