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Survivorship Life Insurance has long been a useful planning tool for Financial Advisors.

Today, Long-Term Care Insurance riders can be added to Survivorship Life Insurance that will advance the death benefit to pay for Care for either or both insureds- even for inter-generational relatives. So, today a useful planning tool can be even more useful!


You may know relatively affluent older parents with at least one child who is not affluent (and most likely never will be) for whom the parents worry about the child’s financial well-being. You may also know adult children who have done exceptionally well; but their parents have difficulty making ends meet.
So, the question begs to be answered- at the death of the parents, what will happen to that “non-affluent” adult child should the “Child” have a health event that requires Care; or to the Mother, who is just making ends meet, of a well-to-do daughter; if Mom needs Care, who will pay for it?

Case Study

  • Michelle is a 45-year-old Commercial Realtor and Developer. She owns a financially successful business and enjoys a good life with her husband and two children.
  • Carol, her Mother, is 74 years old and lives alone in a small Condo two time zones away and lives “retirement check to retirement check”; Carol has little to no savings.
  • Michelle knows that the odds are that one day Carol may experience a health care event that requires Long-Term Care services; she also knows that if that happens, Carol won’t be able to pay for the Care she’ll need. So, if that happens, the burden of taking care of Carol will fall squarely on Michelle’s shoulders- either physically or financially.
  • Michelle share’s her concerns with her Financial Advisor (FA) and her FA suggests that Michelle consider a Survivorship Universal Life Insurance plan with a Long-Term Care rider on she and Carol’s life with Michelle being the Premium Payor. Here’s how it would work:
    • Michelle purchases a $500,000 Second-to-Die Life Insurance policy that includes a Long-Term Care acceleration benefit on she and Carol’s life; the annual premium is $8,042,
    • The Cash Indemnity based Long-Term Care benefit equals $250,000 for each insured and will pay out $5,000 per month for up to 50 months to pay for Care (Home Health Care, Assisted Living Care, Adult Day Care or Nursing Home Care).
    • Both Michelle and Carol could conceivably be on claim at the same time with each receiving $5,000 per month for up to 50 months.
    • The Survivorship Life death benefit will be offset dollar for dollar for any claims paid, with any remainder being paid to Michelle’s beneficiaries.

Value proposition- Life and LTC coverage in one package on two people of different generations with Leverage and Tax Efficiency

For producer education only; not for use with the public.