Long-Term Care Insurance

LTC Insurance Data Entry

1. The Policy name will default to [Client's] LTC Insurance, but you can enter a custom name if you'd like. You will also want to choose the client or co-client as the Owner.
2. Choose the client or the co-client as the Insured Individual, and specify the Purchase year by entering a calendar year to the right.
3. Enter the dollar amount for the client's Annual premium, and specify the year in which the Premium ends. If the client is no longer paying a premium, you can leave this set to $0.
4. Use the Premium inflation field to specify any annual increase on the premium amount. Specify whether premiums are pre-tax or after-tax using the Premium tax field.
5. Enter the amount of the Daily benefit, and specify any Benefit inflation. You can also choose between compound and simple interest as the Inflation type.
6. Specify the Benefit period (the number of years benefits will be paid) and the Elimination period (the number of days the client must wait after LTC begins before receiving benefits).
7. Check the 'Benefit taxable' box if the benefits paid are to be considered taxable income.

Additional Information

LTC Insurance policies will automatically kick in within the Cash Flow projections when LTC costs begin for a respective client. The cost and timing of long-term care are both entered into the Profile > Goals > Long-Term Care Costs card.

You can use the dedicated Long-Term Care Insurance Analysis to visualize the impact that a client's LTC insurance coverage will have in the final years of their plan. The LTC analysis can be accessed within the Insurance > Long-Term Care module of each plan.

In addition to adding existing LTC coverage in the Profile > Net Worth section, LTC policies can also be proposed within the Retirement Analysis section. For more information on proposing insurance policies in the Retirement Analysis module, click here.