Concierge Long-Term Care: Two Designs

This schedule compares two single-premium designs for the same couple. Both provide an unlimited, lifetime long-term care benefit and the same $960,000 guaranteed death benefit. They differ only in how the monthly benefit behaves after the first two years — one holds a higher-level benefit for life; the other starts lower and grows at 3% compound every year. The purpose is to give the family all the figures needed to decide.

Long-term care benefits are paid in two stages. For the first two years, the policy pays up to $40,000 per insured — $80,000 jointly — from the $960,000 death benefit, until that amount is exhausted. After the second year, a lifetime benefit takes over and continues for as long as care is needed, with no end date and no lifetime maximum. The monthly amount in this second phase is lower than in the first; how it behaves over time is the single most significant difference between the two designs.

Phase	What it pays	How long
1. The first two years	Up to $40,000/mo per insured ($80,000 joint), drawn from the death benefit	≈2 years, until the $960,000 is used
2. Lifetime care	Option A — $25,000/mo per insured, level for life.  Option C — $14,000/mo, growing 3% for life	For life — protection does not run out

Metric	Option A — Level for Life	Option C — 3% Compound Growth
Policy design	$960,000 face · level benefit	$960,000 face · 3% compound
Single premium (one-time)	$447,553	$515,530
Guaranteed death benefit	$960,000	$960,000
Guaranteed gain if care is never used	$512,447	$444,470
Immediate cash surrender value (yr 1)	$229,210	$229,210
First two years — monthly benefit	$40,000/mo per insured ($80,000 joint)	$40,000/mo per insured ($80,000 joint)
First-phase duration	≈2 yrs (until the $960,000 is used)	≈2 yrs (until the $960,000 is used)
After the second year — monthly benefit (yr 1)	$25,000/mo per insured ($50,000 joint)	$14,000/mo per insured ($28,000 joint)
Lifetime-phase inflation	None — level for life	3% compound, for life
Monthly benefit at age 85 (per insured)	$25,000	$38,247
Monthly benefit at age 87 (per insured)	$25,000	$40,576
Lifetime-phase duration	Lifetime (unlimited)	Lifetime (unlimited)
Total lifetime care benefit	Unlimited	Unlimited
Premium allocation — life / care	$219,264 / $228,289	$219,264 / $296,266

After the immediate cash surrender value and potential C-corporation tax benefits, the net capital at risk is far below the headline premium — and even that is not truly “at risk,” because if care is never needed, the policy returns a guaranteed $960,000 death benefit. The premium is effectively reallocated from one asset category to another.

Cash-flow analysis	Option A	Option C
Single premium	$447,553	$515,530
Less: immediate cash surrender value (available for loan)	($229,210)	($229,210)
Net capital at risk	$218,343	$286,320
Less: potential C-corp tax savings (30% of care premium)	($68,487)	($88,880)
Net capital at-risk after-tax benefit	$149,856	$197,440

Tax assumption: 30% effective corporate rate applied to the deductible care-premium portion. Actual deductibility depends on corporate structure; consult your tax advisor.

• Guaranteed $960,000 death benefit if long-term care benefits are never used, passing income-tax-free to heirs under current law.
• Guaranteed gain of $512,447 (Option A) or $444,470 (Option C) over the premium paid, embedded in the death benefit.
• Unlimited, lifetime long-term care protection for both insureds — no “use it or lose it,” and no cap on the number of years.
• First-phase benefit up to $80,000 per month jointly, followed by a lifetime benefit that never runs out.
• Option C grows the lifetime benefit at a 3% compound rate, reaching $76,500 per month by age 85 (joint).
• Premiums are contractually guaranteed never to increase after issue.
• Immediate cash surrender value of about $229,210, providing liquidity and financial flexibility.
• Potential C-corporation deductibility on the care premium portion ($228,289 Option A; $296,266 Option C) — subject to your tax advisor’s guidance.

High-net-worth families often assume that wealth alone solves the long-term care challenge. An uninsured extended-care event at the concierge level can disrupt retirement income, erode legacy assets, and shift difficult care decisions onto family members.

A single premium that provides an unlimited lifetime long-term care benefit while guaranteeing a $960,000 legacy if care is never needed is not an insurance expense. It is a strategic capital allocation designed to protect lifestyle, family, and legacy.

To determine whether this strategy is appropriate for your family, request a complimentary review. A typical consultation takes about 20 minutes.