Sample Client Illustrations
Funded once. Guaranteed for life. On the recommended design, the capital at risk is under four months of the benefit the policy pays.
Four guaranteed designs for a healthy California couple, both age 50, Preferred Non-Tobacco. Carrier illustrations dated July 30, 2026.
Partners at the Big 4 typically retire near 60. That means retirement may last thirty years or longer — and inside that window, one extended care event can quietly become the largest uninsured financial risk a family will ever face.
The four illustrations below demonstrate a planning strategy built for professionals who value guarantees, tax efficiency, and capital preservation. Each one is funded once. Each one pays long-term care benefits for life on eligible claims, with no dollar cap. Each one returns more to the family than the premium if care is never needed. And each one develops guaranteed cash value immediately, so the capital genuinely at risk is a fraction of the premium paid.
Every illustration shown here is fully customizable. Monthly benefits, inflation protection, payment schedules, and death benefits can all be tailored to your family’s objectives.
Every design here is split into two layers, and the difference between them is the most important thing to understand before comparing premiums.
The first layer draws on the policy’s own death benefit. At the benefit levels shown, that layer lasts twenty-four months. The second layer begins the moment the first is exhausted and continues for life, with no dollar cap and no time limit.
In Illustrations 1 and 2, the two layers pay at the same monthly rate, so the benefit never steps down. In Illustrations 3 and 4, the lifetime layer pays at a lower monthly rate than the opening twenty-four months — $25,000 in Illustration 3 and $14,000 compounded at 3% in Illustration 4. Read the two rows in each table together. The second governs a long claim.
A benefit that never steps down is worth more than a higher opening number. That is why Illustration 2 is the recommended starting point rather than Illustration 3.
Traditional long-term care insurance asks one question: “How much coverage do you want?” This design asks a better one.
“How little capital must I actually place at risk to secure lifetime protection?”
That difference changes everything. It shifts the decision from a coverage question to a capital question — exactly how a partner evaluates every other allocation on the balance sheet.
Most long-term care policies stop paying after two to five years. These designs continue paying on eligible claims for as long as care is needed, with no dollar cap. If care lasts ten years, or twenty, or longer, the benefits continue.
Unlike traditional long-term care insurance, the premium is not simply consumed. Every illustration guarantees a death benefit larger than the amount committed.
Single premium $271,867 · Guaranteed death benefit $480,000
Guaranteed gain to beneficiaries $208,133
No claim. No lapse. No outcome in which the premium disappears.
Immediately after issuance, every policy develops a guaranteed cash surrender value that may be accessed through a policy loan. Accordingly, the capital genuinely at risk is less than the premium paid.
Single premium $271,867 less Year-1 guaranteed cash value $114,605
Net capital at risk $157,262
That is fewer than four months of the benefit this policy pays — and this benefit does not step down. Beyond that point, the insurance company continues paying eligible benefits for life.
Policy loans and withdrawals accrue interest and reduce the cash value, the death benefit, and the long-term care benefits otherwise available.
Every illustration identifies the portion of the premium attributable to qualified long-term care coverage, shown in the comparison table below. Depending on how the policy is owned — individually, or through a partnership, S corporation, or C corporation — that component may support a deduction and reduce the effective cost of the protection. The rules differ by structure and are subject to annual limits, so the planning is worth doing before the policy is issued rather than after.
This is not simply another long-term care policy. A single contract combines lifetime long-term care benefits, immediate guaranteed cash value, a guaranteed death benefit, return-of-capital characteristics, and potential tax advantages — a combination available through only a limited number of carriers.
One Premium. Four Levels of Protection.
One objective. Four levels of protection. Read them as a ladder — each step adds room above tomorrow’s cost of care. The premium is the number most people look at first; it is rarely the number that matters most. Read down the column — the line that decides the question is net capital at risk, and the line that decides a long claim is the continuing monthly benefit.
One structure, four levels — side by side for a 50-year-old couple, guaranteed at issue age 50.
| Guaranteed at Age 50 | Essential ProtectionIllustration 1 | Professional ProtectionIllustration 2 | Affluent ProtectionIllustration 3 | Concierge ProtectionIllustration 4 |
|---|---|---|---|---|
| Monthly benefit per insured, first 24 months | $15,000 | $20,000 | $40,000 | $40,000 |
| Monthly benefit per insured, thereafter for life | $15,000 | $20,000 | $25,000 | $14,000, +3%/yr |
| Combined monthly benefit for the couple, for life | $30,000 | $40,000 | $50,000 | $28,000, +3%/yr |
| Long-term care benefits | Lifetime · no cap | Lifetime · no cap | Lifetime · no cap | Lifetime · no cap |
| Inflation protection | None — level | None — level | None — level | 3% compound |
| Guaranteed death benefit if care is never needed | $360,000 | $480,000 | $960,000 | $960,000 |
| One-time single premium | $203,900 | $271,867 | $447,553 | $515,530 |
| Less: guaranteed cash value, Year 1 | $85,954 | $114,605 | $229,210 | $229,210 |
| Net capital at risk | $117,946 | $157,262 | $218,343 | $286,320 |
| Net capital, in months of the continuing benefit | 3.9 | 3.9 | 4.4 | 10.2 |
| Qualified long-term care premium component | $121,676 | $162,235 | $228,289 | $296,266 |
| Guaranteed gain if care is never needed | $156,100 | $208,133 | $512,447 | $444,470 |
Net capital at risk is the single premium less the guaranteed cash value at the end of Year 1. That cash value is guaranteed and available by policy loan. Policy loans and withdrawals accrue interest and reduce the cash value, the death benefit, and the long-term care benefits otherwise available.
Net capital in months of the continuing benefit divides net capital at risk by the couple’s combined continuing monthly benefit. On a single-insured basis, the same capital represents twice as many months. Measured against the opening twenty-four-month benefit, Illustrations 3 and 4 represent 2.7 and 3.6 months, respectively.
The qualified long-term care premium component is the portion of the single premium attributable to long-term care coverage. It is the base on which a deduction is calculated — not an amount deductible in any single year. Deductibility depends on ownership and business structure, as well as on annual limits under the Internal Revenue Code. Consult your CPA or tax adviser regarding your circumstances.
Long-term care benefit payments reduce the death benefit and the cash surrender value. Figures are taken from carrier illustrations dated July 30, 2026, for a healthy California couple, both age 50, Preferred Non-Tobacco. The values shown are guaranteed, and premiums, once paid, will never increase.
Every payment structure purchases the same guaranteed benefits. Choose the schedule that best matches your objectives.
| Payment Structure | Essential ProtectionIllustration 1 | Professional ProtectionIllustration 2 | Affluent ProtectionIllustration 3 | Concierge ProtectionIllustration 4 |
|---|---|---|---|---|
| Single pay (one-time) | $203,900 | $271,867 | $447,553 | $515,530 |
| 5-Pay | $58,262 / yr | $77,683 / yr | $133,536 / yr | $149,652 / yr |
| 10-Pay | $29,686 / yr | $39,581 / yr | $66,947 / yr | $75,854 / yr |
| 20-Pay | $17,986 / yr | $23,981 / yr | $39,977 / yr | $45,898 / yr |
| Pay to age 95 | $12,762 / yr | $17,016 / yr | $28,124 / yr | $32,377 / yr |
All structures guaranteed never to increase.
Essential Protection · Illustration 1
Today’s private room cost, held level for life
A benefit level set at the current cost of a private room in a Bay Area nursing home. The monthly benefit is the same in the first twenty-four months, and for life afterward, so it never steps down. There is no inflation protection, so plan on the benefit buying less in thirty years than it buys today.
Recommended starting point for partners and executives
Professional Protection · Illustration 2
Private room care, with room above it
The design that speaks most directly to partners, physicians, attorneys, and business owners. It funds private room care at today’s cost and leaves headroom for the increases that will arrive over a thirty-year retirement. Like Illustration 1, the monthly benefit is level for life — it does not step down once the first layer is exhausted.
Affluent Protection · Illustration 3
The highest opening benefit in the set
This design pays $40,000 per insured for the first twenty-four months, then $25,000 per insured for life. It suits affluent families who expect an intensive initial period of care — full-time private staffing at home or a premium residential setting — and want an elevated level of care continuing indefinitely afterward.
Concierge Protection · Illustration 4
Concierge start, with a benefit that keeps growing
The same opening benefit as Illustration 3, but the lifetime layer starts lower and grows at 3% compounded annually. It pays less than Illustration 3 for the first 20 years and more thereafter — crossing over in policy year 21 and reaching about $38,000 a month by year 35. Designed for a fifty-year-old who expects to claim in their eighties, once three decades of compounding have done their work.
On the recommended design, under four months of the benefit the policy pays, committed once — in exchange for benefits guaranteed for life.
| Traditional retirement planning | Illustration 1 — $15,000/mo |
| Partner at the Big 4, corporate executive, physician, attorney | Illustration 2 — $20,000/mo |
| Affluent family expecting an intense initial period of care | Illustration 3 — $40,000/mo |
| Younger family who expects to claim decades from now | Illustration 4 — $40,000/mo + 3% |
Where a partnership, an S corporation, or a C corporation owns a policy, the qualified long-term care premium component may be treated differently than it would be for an individual purchaser. The structure that produces the best result is not the same for every household, and it is far easier to establish before the policy is issued than to correct afterward. This is precisely the analysis a CPA should be doing alongside the insurance decision — and it is included in every complimentary review conducted here. Consult your CPA or tax adviser regarding your individual circumstances.
The issue is not “How much long-term care insurance should I buy?” The better question is: how little capital must I commit today to protect millions of dollars of future retirement assets? That is exactly what these four illustrations are designed to answer.
Every illustration is prepared for your own age, health, retirement objectives, business ownership structure, desired monthly benefit, and preferred funding method. It takes about 20 minutes to prepare and review, is complimentary, and is personally conducted by Withbert W. Payne, CPA.
At the higher benefit levels, the amount applied for triggers full underwriting, including a paramedical examination and laboratory work. Underwriting is the one part of this that cannot be arranged after the fact, which is why the review is worth having while health is not a question.
Request a Complimentary Review Call (925) 708-6501Illustrative examples only. Figures are taken from carrier illustrations dated July 30, 2026, for a healthy California couple, both age 50, Preferred Non-Tobacco, and are not an offer of coverage. Actual premiums, benefits, cash values, and death benefits vary by age, health, underwriting classification, state of issue, and policy design. Coverage is subject to medical underwriting. Guarantees are subject to the issuing insurance company’s claims-paying ability. Long-term care benefits are payable only on eligible claims, subject to policy terms, benefit triggers, and elimination periods; benefits require certification of chronic illness — an inability to perform at least two of six activities of daily living, or a severe cognitive impairment — together with a plan of care prescribed by a licensed health care practitioner. There is no elimination period for home health care or adult day care; a ninety-day elimination period applies to assisted living, nursing home, and international facility care. Long-term care benefit payments reduce the death benefit and the cash surrender value. Policy loans and withdrawals accrue interest and reduce the cash value, the death benefit, and the long-term care benefits otherwise available. Exclusions and limitations apply, including care provided by immediate family members and services otherwise covered by government programs. Long-term care benefits are generally income-tax-free. The tax treatment of premiums depends on ownership and business structure, as well as on annual limits under the Internal Revenue Code; consult your CPA or tax adviser regarding your individual circumstances. This is a solicitation for insurance. Insurance Review Services · LTCCPAs.com · Withbert W. Payne, CPA, CGMA, FCA · CA Insurance License No. 0E90257
