re: Long term care insurnace policies

No dude I’m not talking about cash value loans.. let’s say I have a $500k G-VUL policy with a chronic care rider and my premium is $12k per year.

Say on year 5, I’ve put $60k into the policy in premiums and now I go on claim. I can now access up to 4% of the death benefit of $500k (so $20k/mo) for LTC purposes. That’s a lot to access even in today’s terms but that would last 2.5 years before the policy exhausts itself.

But say I pass away on year 3 having drawn out only 2%/mo or $10k/mo for a total of $300k (this is more realistic terms). There’s still a $200k life insurance death benefit left over.. and I only put $60k into the policy. Again there’s are hypotheticals but you can see how the insurance works.

Edit: on top of that, a lot of these policies, Prudential specifically has their chronic rider as an indemnity rider. Meaning if I go on claim then I can use that money for whatever I want, it doesn’t have to “reimburse” the healthcare provider.