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Long Term Care Expense Exposure

At R4®, it is our model to provide the following summary of options to mitigate long-term care expense exposure:

Long Term Care (LTC) Expense Exposure – Risk Mitigation Options

Traditional Long-Term Care Insurance Risks

o Premiums are not guaranteed to remain the same

o Premiums are lost if no LTC expenses take place

o Cost of living benefit increases (optional)

Talk to Us About Your Long Term Care

R4® Exit Strategies

  1. Liquid, Single Deposit (Down Payment) Strategy


    • Initial, one-time deposit used to fund the LTC expense pool with a multiplier effect

      • Hypothetical example: client deposits $100,000 and will have an LTC Expense Pool of $400,000 (this varies by age and gender)

    • Deposit is 100% liquid (like cash in a savings account) from day 1 – the premium can be returned in full at any time

    • Premium amount is guaranteed, no further premiums are due

    • Deposit is not lost if unused for LTC - expenses either through the return of premium or a death benefit payment at time of death

    • Cost of living benefit increases (optional)

  2. Capital Replenishment Trust

    • Draw on personal assets to fund LTC expenses in combination with a life insurance policy to
      replenish this money at death

    • Premiums are guaranteed – the premium will not change

    • Premiums are not lost since there is a death benefit even if no LTC expense exists

  3. Hybrid Strategy: Life Insurance Combined Policy with a LTC Rider or a Critical Care Rider

    • The policy will pay for LTC expenses up to 2% of the death benefit per month until the death benefit is exhausted

    • The death benefit is reduced by the LTC expenses. If no LTC expenses exist, then the death benefit is not reduced and is paid in full at death

    • Premiums are guaranteed – the premium will not change

    • Premiums are not lost since they are at the minimum used to fund the death benefit if no LTC expense exists

Securities offered through qualified registered representatives of MML Investors Services LLC. Member SIPC. R4
Risk & Wealth Solutions®
is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. 186 Wood Ave S, Suite 301 Iselin NJ 08830. 732.623.5700.