Income Protection in Retirement

You worked hard for your retirement income and now is the time to enjoy your life. 

Preplan for long term care and protect the ones you love and your retirement.

Long term care affects the family and finances

What type of emotional and physical stress will be put on your family?

What retirement funds will be reallocated? Will that alter the retirement we planned?


Long term health care costs will affect over 70% of people over age 65.

Only 15% of Americans have pre-planned or saved for long term health care costs.

In the Bay Area, the costs of care will range from $70,000-$130,000 per person/year.

 Did you know these facts about long term care? 

Pocket Watch

Average Length of Long Term Care

Length of care depends on the individuals overall health and cognitive function.



Alzheimer's Disease   

Parkinson's Disease   

4 years                              

5 years                          

8 years   

11 years   


 Long Term Care Costs in the Bay Area

Long term care costs in the Bay Area is

one of the highest in the nation.

Inflation increases costs 3-5% per year.

2020 costs

Home care:                     $78,000 per year

Assisted living facility  $59,000 per year

Skilled nursing facility $160,000 per year


"The fact remains that most of us are anesthetized to the true cost and

the true value of long term care planning" 

Pier in the Lake

Long term care is stand by assistance for daily tasks.

Two conditions warrant long term care help.

Physical disability

Advanced age



Parkinson's Disease


Cognitive impairment


Alzheimer's Disease


Long term care options

Home Health Care

Most common long term care option

Care in your own home

1.  Stand by assistance

2.  Health and wellness monitoring

3.  Cooking and housekeeping

4.  Companionship

Senior Assisted Living

Second level option

Living facility for residents

1.  Stand by assistance 24 hrs day

2.  Living, meals, & housekeeping

3.  Exercise and recreational activities

4.  Social interaction

5.  Includes "Memory Care" facility

Skilled Nursing Facility

Highest level of care

Residential facilities

1.  24 hr day stand by assistance

2.  Health and wellness monitoring

3.  Living, meals, and housekeeping

4.  Medical professional 24 hrs day

5.  Rehabilitation and medical care


Paying for long term care

Living Benefits Life Insurance    Option 1

Gene 45 has a massive stroke and can't practice

His road to recovery is long and needs help at home which is very costly.

With his $500,000 permanent life insurance policy, he activates the chronic illness rider and submits a physician's report to the life insurance carrier.

Gene advances the entire $500,000 death benefit, and will receive $10,000 per month for 50 months.

Qualify for the chronic illness rider in the policy by physical disability or cognitive impairment.

  • Limited by the amount of death benefit.

  • Accelerate the amount of money you need or the whole amount.

  • Can be paid as lump sum or monthly.  

  • No payback

Traditional Long Term Care Insurance    Option 2

Qualifying circumstances due to physical or cognitive impairment.

  • Pays long term care related expenses

  • Home care, assisted living facility, skilled nursing.

  • Elimination days

      (out of pocket deductible 30, 60, 90 days) 

  • Max 2, 3, 5 years of coverage acts as multiplier of monthly benefits.

  • Annual inflation protection increases monthly benefits (2%, 3%, 5%) per year.  

  • Reimbursement policy (family pays first)


  • Premium rates not guaranteed.

Gwen's parents had Dementia so she is concerned about her future and the impact on the family.  

She buys a traditional long term care policy.  

Asset Based Life Insurance for Long Term Care    Option 3

Physical disability or mental insufficiently qualification

Same benefits as traditional long term care  PLUS

additional unique features.

  • Fixed premiums

  • One policy covers 2 people

  • Unlimited lifetime benefits option

  • Return of premium if long term care not used

  • Long term care not used: 2nd to pass life insurance benefit 

  • Pay premiums with taxable retirement funds

       (401k, SEP IRA, IRAs) 

Evan & Joan are planning for long term care.

They elect an Asset Based Life Insurance for long term care plan because:

  • they can relocate $200,000 from a 401k for the premium.

  • they have $4,700 per month/per person in long term care, lifetime & unlimited benefits.

  • in twenty years about $103,000 returned if they cancel their policy.

  • if they don't need long term care their kids will recieve $160,000 as tax free life insurance.

Medi-Cal    Option 4

California state run medical insurance for low income, disabled individuals, families, or seniors.

  • Income must fall below threshold to qualify for Medi-Cal eligibility.

  • Skilled nursing on limited space availability.

  • Limited home care available.

Income protection for life...

Michael D. Wong, CLTC, DDS 

(650) 502-1511

CA Lic. 0K40153

©2020 by California Life and Disability, Inc.