Where the money comes from, how long benefits last, and how flexible your payment structure can be — the key funding mechanics every LTC applicant should understand.
Where Can the Premium Come From?
Your LTC premium does not have to come from new money. A wide range of existing assets can be simply reallocated to fund your policy — making the transition straightforward and tax-efficient.
Existing life insurance policies can also be transferred via a 1035 Exchange — a tax-free transfer that repositions an underperforming life policy into a new LTC-inclusive policy without triggering a taxable event.
The elimination period is the waiting period before your LTC policy begins paying benefits — similar to a deductible measured in days rather than dollars.
Home Health Care
Benefits for home health care can begin paying as soon as day zero — no waiting period required. Care begins and benefits begin simultaneously.
All Other Facility Care
For assisted living, skilled nursing, and all other facility-based care, a 90-day waiting period applies — measured within 270 calendar days — before benefits are paid.
Premiums can be funded in two ways — a single one-time payment, or a structured recurring premium schedule that spreads the cost over time.
Pay once at the time of policy issue — fully fund the COB Rider with a single lump sum and never pay again. Ideal for asset repositioning or single-premium strategies.
Spread the cost of the COB Rider over time with a structured payment schedule. Choose the period that fits your cash flow:
Care Outside the United States
Coverage is provided for facility care received in locales outside the U.S., its territories, and Canada. There is no international coverage for non-facility care.
Withbert W. Payne, CPA will walk you through how an asset-based LTC strategy compares to what you currently have — or don't have — in place. Completely free, no obligation.
Request a Free Review →Disclaimer: This page describes general features of asset-based long-term care policies. Specific terms, elimination periods, payment schedules, and international coverage provisions vary by carrier and policy. The 1035 Exchange option is subject to IRS rules and individual policy terms — consult a qualified tax advisor before executing any exchange. Coverage availability and benefit amounts are subject to underwriting and state approval. This page is for informational purposes only and does not constitute an offer or solicitation to sell insurance. This is a solicitation for insurance.