Asset Based vs. Traditional LTC:
| Traditional | Asset Based |
| Payment option (Pay premiums for life) | Premiums can be lifetime/continuous pay or can be limited to a certain number of years – single pay, 10 pay, etc. |
| Initially the premium is less expensive than asset based LTC insurance | Initially the premium is more expensive than traditional LTC insurance |
| Limited benefits | Benefits can be for the lifetime of the insured |
| Written only on individual lives | Written on individual or joint lives |
A Contrast:
| Traditional | Asset Based |
| Does not build cash value | Builds cash value |
| Does not provide a death benefit | Provides a death benefit |
| Premiums are not guaranteed | Guaranteed premiums |
| No ROP | The insured has a guaranteed surrender value or Return of premium option (depending on the contract) |
A better Way of Self Insuring:
Asset Based vs. Traditional LTC:
| Asset Based pay as you go plan | Leading LTCi product |
| $5k per insured | $5k per insured |
| Lifetime benefits | 10 years per insured |
| 30 day elimination in the home/60 all other services | 30 day elimination all services |
| $125k death benefit | No death benefit |
| Walk away yr 10-35k cash value | Walk away yr 10- $0 |
| Walk away yr 20- 75k cash value | Walk away yr 20- $0 |
| Guaranteed premiums | Non guaranteed premiums |
| $7749 annual premium | $7206 annual premium |
