Money Down for LTC
Single Premium Drop-In Rider (SPDR)
The idea of making a down payment is not new. Consumers use down payments when making large purchases like a new car or a home to help reduce their ongoing monthly payment. The same concept can now be applied to long-term care protection!
The Single Premium Drop-In rider (SPDR) is only available with Asset Care Recurring Premium Whole Life. The rider allows your clients to “drop-in” up to two additional premium payments within six months of policy issue to help decrease their ongoing payments. Clients will be underwritten for the assumed total face amount, including their initial premiums and all drop-ins.
Using the SPDR allows Jack and Diane to reduce their ongoing annual premiums by nearly $2,500 per year and still receive up to $60,000 per person per year to help pay for qualifying LTC expenses!
Consider this hypothetical example:
Jack 58, and Diane 56; married couple, non-smokers in good health
Asset Care Recurring Premium Whole Life —
33 month initial benefit with Lifetime COB; no inflation
| No SPDR | With SPDR | |
| Total Premium | $5,317 | $6,117 |
| Single Premium Drop-In | NA | $50,000 |
| Total 1st Year Premium | $5,317 | $52,843 |
| Ongoing Annual Premium | $5,317 | $2,843 |
| Monthly LTC Benefit (per person) | $5,000 | $5,000 |
| Annual LTC Benefit (per person) | $60,000 | $60,000 |
| Note: The minimum drop-in amount is $10,000, with a maximum of $100,000. The maximum face amount that can be purchased by the drop-ins may not exceed $250,000. All numeric examples and any individuals shown are hypothetical and were used for explanatory purposes only. Actual results may vary. | ||