Key Metrics at a Glance
| Issue Ages | 50-80 | Insured ages |
|---|---|---|
| Minimum Premium | $35,000 | Single premium |
| Maximum Premium | $400,000 | $600K joint |
| LTC Multiple | 2x or 3x | 88% get 3x |
| Benefit Duration | 72-90 months | 6-7.5 years |
| Elimination Period | 90 days | Waived for home care |
| Benefit Type | Reimbursement | Receipts required |
| Approval Speed | 30 minutes | 95% approval rate |
Your Money Always Comes Back
With asset-based LTC, you're not gambling on getting sick. You're repositioning an asset that works for you in every scenario.
| Scenario | What Happens | Benefit | Who Gets It |
|---|---|---|---|
| Door 1: LIVE | You need LTC care | Tax-free LTC benefits (2-3x contract value) for 6-7.5 years | You get the money |
| Door 2: DIE | You don't need LTC | Remaining contract value passes to your beneficiaries | Family gets the money |
| Door 3: LEAVE | You change your mind | Surrender value returned (after 9-year CDSC period) | You get the money |
Note: Death benefit passes taxable gains to heirs (unlike life insurance). ForeCare is a tax tool for LTC, not a wealth transfer vehicle.
Benefit Duration Matrix
Your coverage duration depends on single vs. joint coverage and your underwriting class (Premier or Standard). 88% of approved applicants qualify for Premier (3x).
Single Life Coverage
| Class | Multiple | Duration |
|---|---|---|
| Standard | 2x | 72 months |
| Premier88% qualify | 3x | 72 months |
Joint Life Coverage
| Class | Multiple | Duration |
|---|---|---|
| Standard | 2x | 84 months |
| PremierExtended | 3x | 90 months |
Understanding Accelerated vs. Extended
Accelerated Benefit: Paid first by reducing your contract value. Essentially spending your own money with tax advantages.
Extended Benefit: Paid after contract value reaches zero. This is where the leverage comes from—additional coverage beyond your premium.
How ForeCare Works
PPA Tax Optimization: The Real Value
Traditional Annuity Withdrawal
$200,000 annuity with $60,000 gain
- • Withdraw $60,000 gain = taxed as ordinary income
- • At 32% bracket = $19,200 in taxes
- • Net available for care = $40,800
ForeCare LTC Withdrawal
Same $200,000 annuity 1035'd to ForeCare
- • Withdraw for qualified LTC = tax-free
- • $60,000 gain = $0 taxes
- • Net available for care = $60,000
Plus the Multiplier: Your $200,000 becomes $400,000-$600,000 in LTC coverage (2-3x depending on class). The combination of tax-free access and leverage is ForeCare's core value proposition.
30-Minute Same-Day Approval
The fastest underwriting in the hybrid LTC market. Complete a 10-question medical questionnaire at point-of-sale and receive approval within 30 minutes. No medical exams, no APS, no waiting weeks for a decision. Ages 70-80 require a brief 15-minute cognitive phone interview.
95% Approval Rate
ForeCare accepts clients that other carriers decline. With a 95% overall approval rate and 88% Premier (3x) qualification rate, it's the fallback option for clients who've struggled with traditional underwriting.
PPA Tax Optimization
Designed specifically for Pension Protection Act compliance. Reposition non-qualified annuity gains into tax-free LTC spending. No taxes on growth when used for qualified LTC expenses—unlike withdrawing from a traditional annuity where gains are taxable.
Joint Coverage Option
Cover both spouses under a single contract with extended durations (84-90 months vs. 72 for single). Each spouse can access up to the maximum monthly benefit. "Married 2-Buy" discount available when spouses purchase separate policies.
Home Care Without Elimination
The 90-day elimination period is waived for home health care with a qualifying plan of care. Start receiving benefits immediately for home-based services—a critical advantage since most care begins at home.
Locked Rider Charges
Monthly LTC rider charges are locked at issue and never increase. Charges are waived while receiving LTC benefits. The rate depends on age, sex, and underwriting class, ranging from 0.9% to 3.0% annually.
Covered Care Types
Exclusions
- •Care provided outside the United States
- •Care from immediate family members (unless employed by licensed provider)
- •Services with no charge in absence of insurance
- •VA or federal government facilities (unless required by law)
- •Alcoholism or drug addiction (except medically prescribed)
- •War or act of war
- •Attempted suicide or self-inflicted injury
Surrender Charge Schedule
9-year CDSC schedule plus potential Market Value Adjustment. 10% free withdrawal available annually. LTC withdrawals are never subject to charges.
Leverage Examples: What Your Money Can Do
ForeCare provides 2-3x leverage. 88% of approved applicants qualify for Premier (3x).
Susan, 62 (Premier, Single)
Single Premium: $150,000
88% of approved applicants qualify for Premier class
Richard, 74 (Standard, Single)
Single Premium: $100,000
Standard class still provides 6 years of coverage
John & Mary, 65/63 (Premier, Joint)
Single Premium: $200,000
Joint Premier extends duration to 90 months
Examples are hypothetical illustrations based on initial contract value. Monthly rider charges reduce contract value over time. Request a personalized illustration.
Real World Scenarios
Is ForeCare right for YOUR situation? Here's who this works for—and when to consider alternatives.
Perfect Fit: The Previously Declined Applicant
Perfect FitCarol (Age 68): Carol was declined by two traditional LTC carriers for controlled Type 2 diabetes. She has $120,000 in a fixed annuity earning 1.5% that she'd earmarked for potential care expenses but knows that isn't enough.
How ForeCare Helps:
ForeCare's simplified underwriting focuses on current functionality, not medical history minutiae. Carol answers "No" to the five eligibility questions and "Yes" to a question about diabetes, placing her in Standard class. Key Benefits: • 95% approval rate accepts declined applicants • Standard class still provides 2x leverage • 72 months of coverage • Tax-free LTC withdrawals via PPA
Outcome:
Carol's $120,000 becomes $240,000 in LTC coverage (2x Standard) with $3,333/month for 72 months. She went from 'declined' to 'covered' in one 30-minute appointment. Her old annuity gains will now be tax-free when used for care.
Perfect Fit: The Tax-Efficient Repositioner
Perfect FitGeorge (Age 58): George has $200,000 in an old variable annuity with $60,000 in gains. He wants to reposition for LTC protection but dreads triggering a $60,000 taxable event. At 32% bracket, that's nearly $20,000 in taxes.
How ForeCare Helps:
1035 exchange into ForeCare. George's $200,000 transfers tax-free. Because ForeCare is PPA-compliant, any future withdrawals for qualified LTC are also tax-free. Tax Comparison: • Traditional withdrawal: $60K gain taxed at 32% = $19,200 taxes • ForeCare LTC withdrawal: $60K gain = $0 taxes • Plus 3x leverage = $600,000 LTC coverage
Outcome:
George qualifies for Premier (3x), giving him $600,000 in LTC coverage. If he eventually uses this for care, his entire $200,000—including the $60,000 gain—comes out tax-free. He avoided $20,000+ in taxes and gained $400,000 in leverage.
Perfect Fit: The Couple Seeking Joint Coverage
Perfect FitMark and Linda (Age 67/64): The couple has $250,000 they want to reposition. They want both spouses covered without purchasing two separate policies. They're concerned about the 'first to need care' problem where one spouse exhausts all benefits.
How ForeCare Helps:
ForeCare Joint Life policy. Both are listed as insureds. Either spouse can trigger benefits, and both can receive benefits simultaneously if needed. Joint Advantages: • 90 months duration (vs 72 single) • Each spouse can claim up to max monthly benefit • Single contract simplicity • $750,000 combined LTC pool
Outcome:
Their $250,000 becomes $750,000 in LTC coverage (3x Premier). Each spouse can access up to $8,333/month. If only one spouse needs care, the other retains access to remaining benefits.
Compare Options: The Maximum Flexibility Seeker
Compare OptionsPatricia (Age 60): Patricia plans to potentially retire abroad and wants LTC coverage that works internationally. She also wants cash indemnity so she can pay family caregivers and avoid monthly receipt submissions.
Analysis:
ForeCare is the wrong product. It's reimbursement-only (must submit receipts), excludes international care entirely, and doesn't cover family caregivers unless they're employed by a licensed organization. ForeCare Limitations: • Reimbursement only (no cash indemnity) • Zero international coverage • No family caregiver payments • Monthly receipt submissions required Better Alternatives: • Nationwide CareMatters Annuity: Cash indemnity + 100% international • Securian SecureCare III: Cash indemnity + 100% informal care
Our Recommendation:
Patricia should compare CareMatters (cash indemnity, 100% international) or life-based hybrids with indemnity options. ForeCare excels at speed and approval rates but sacrifices flexibility.
Where It Shines
Fastest Underwriting in Market
30-minute approvals at point-of-sale. No medical exams, no APS, no weeks of waiting. Complete the 10-question form and get a decision before leaving the appointment. The 15-minute cognitive interview (ages 70-80) happens by phone the same day.
Highest Approval & Premier Rates
95% of applicants receive coverage—far higher than traditional LTC or most hybrids. Even better: 88% of approved applicants qualify for Premier (3x), not Standard (2x). ForeCare is the fallback for clients declined elsewhere.
PPA Tax Efficiency
Convert taxable annuity gains into tax-free LTC spending. Unlike withdrawing from a traditional annuity where gains are taxed as ordinary income, ForeCare's PPA-compliant structure makes qualified LTC withdrawals completely tax-free.
Joint Life Extended Durations
Joint coverage extends Premier duration from 72 to 90 months (7.5 years)—one of the longest joint benefit periods in the annuity-LTC market. Both spouses can claim simultaneously, each receiving up to the maximum monthly benefit.
Home Care Elimination Waiver
The 90-day elimination period is waived for home health care. Since 70%+ of care starts at home, this means immediate benefit access for the most common care scenario. Other covered services require the standard 90 days.
!What Gives Us Pause
Reimbursement Only (No Cash Indemnity)
Benefits are paid as reimbursement for documented expenses—you must submit receipts each month and wait for payment. No cash indemnity option like Nationwide CareMatters or Securian SecureCare III. Less flexibility in how you use benefits.
No International Coverage
Benefits are only payable within the United States and its territories. Zero coverage for care received abroad—unlike CareMatters (100%) or some life-based hybrids. A dealbreaker for snowbirds or potential expat retirees.
No Family Caregiver Payments
Family members cannot receive payment unless they're regular employees of a licensed organization providing services. Unlike CareMatters (100% informal care) or SecureCare III, you can't pay your daughter to care for you.
Monthly Rider Charges Reduce Yield
The LTC rider charge (0.9%-3.0% annually depending on age) is deducted monthly from contract value. Your realized yield will be less than the declared rate—potentially significantly less. This isn't 'free' coverage.
9-Year Surrender Period with MVA
Withdrawal charges apply for 9 years (8%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%). Plus, a Market Value Adjustment may apply—potentially making surrenders even more costly in rising rate environments.
Underwriting Reality: The 10-Question Process
ForeCare has the fastest underwriting in the market. 10 questions, 30 minutes, 95% approval rate.
Likely to Qualify
- •Not currently hospitalized, bed-confined, or in assisted living
- •No LTC application declined/postponed in past 12 months
- •Not using walker, wheelchair, oxygen, dialysis, hospice
- •No assistance needed with ADLs or medication
- •No history of Alzheimer's, dementia, Parkinson's, MS, ALS (7 years)
- •No cirrhosis, stroke with COPD/smoking, organ transplant (7 years)
!May Get Standard Class
- •Aneurysm, heart bypass, valve replacement (12 months)
- •Multiple hospitalizations or falls with fracture (12 months)
- •Cancer other than non-melanoma skin (5 years)
- •Alcohol/drug abuse or psychiatric hospitalization (5 years)
- •Insulin-treated diabetes (7 years)
- •Rheumatoid arthritis with joint replacement/deformity
- •Diabetes with TIA, neuropathy, or kidney disease history
- •Bipolar disorder, schizophrenia, psychosis
Likely Declined
- •Currently hospitalized or in assisted living facility
- •Currently using walker, wheelchair, oxygen, dialysis
- •Need assistance with any ADL or medication management
- •Alzheimer's, dementia, or memory loss diagnosis
- •Parkinson's, MS, ALS, or muscular dystrophy
- •Stroke with COPD/smoking history
- •Prior LTC application declined in past 12 months
The 30-Minute Approval Process
Frequently Asked Questions
Compare to Similar Products
Explore these related guides to continue your research.
Annuity-based with reimbursement like ForeCare, but offers Lifetime COB option, higher leverage potential, and $10K minimum.
Annuity-based with cash indemnity (not reimbursement), 100% international, 100% informal care—the flexibility ForeCare lacks.
Life-based with cash indemnity, 100% ROP after 6 years, higher leverage. Different chassis but similar flexibility advantages.
0-day elimination, reimbursement or indemnity choice at claim, Benefit Transfer Rider for couples.