Shared Policy for spouses - Pre-planning for LTC

Facts:

Attorney and his wife, both aged 50, in good health, concerned about prospective costs of long-term care in their 80's or 90's.  Also concerned that if something were to happen earlier, especially during working years that their disability coverage would not provide enough funds to pay for their lifestyle and for the cost of care.  A portion of their premium is deductible.

Solution:

Long-term care insurance policy with initial monthly benefit of $7,500, 5% compound inflation, 5 year benefit period, shared benefit (common benefit pool of 10 years).  Benefit in 30 years will be $30,871 per month to help address the average cost of care which will then be approximately $37,045 per month.  (Current cost of care approximately $9,000 per month, increased at an average 5% per year over 30 years).

Outcome:

The couple has taken steps today, at a relatively modest cost, to preserve their assets and lifestyle as well as their children's lifestyle if they require care.