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LTC Leverage Comparison Tool
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Dear Advisor,
Welcome to the LTC leverage comparison tool. We've gathered and analyzed illustrations from leading carriers, to save you hours of research and analysis work. LTC products are hard to compare so we focused on a simple question.
Which product will provide your client the most LTC leverage for their spend?
To provide a fair comparison, the spend calculation must go beyond initial premium and LTC benefits and incorporate your client's opportunity cost.
Let's begin
Let's begin by entering the following information on your client
The bottom line
LTC Leverage (claim age 80) for $1 Spend
(vs an alternative investment in a standard FIA)
Product rates as of March 24-26, 2025
Hover for product details including tax advantages and benefit payment options.
This is only an example of how each company's offering might perform under assumed conditions. You should speak with a financial advisor before making any life insurance or annuity-related decisions.
How do we calculate the leverage?
First, we estimate the opportunity cost - what your client would get if he does not buy the product and instead invests a $100K in an alternative investment for the same duration. (we chose a standard FIA as the alternative).
Your assumption on the alternative return rate can be changed above the top chart.
We'll pick one hybrid life product to explain. We then calculate the Real LTC Value of a product by subtracting the opportunity cost from the product's illustrated LTC benefit (at age 80). This is the real amount of LTC protection that the product adds on top of what you could've had.
In a similar manner, the True Cost of coverage is the opportunity cost minus the product's death benefit (at age 80). Your true cost is what you could have accumulated minus what you actually get in the product. This amount is often higher than the initial premium.
In a 5.5% alternative return scenario, products with strong accumulation, like Bridge, will grow beyond the opportunity cost even after paying for LTC coverage - this makes the True Cost negative. To simplify the leverage calculation we make it $1 instead and the result is very high leverage values in this scenario.
The LTC leverage is simply the division of Real LTC Value by the True Cost. It means how many dollars of LTC the product provides you for every real dollar it costs you.
The LTC leverage comparison tool compares popular hybrid LTC products. The assumptions underlying this comparison are as follows: All carrier rates were accessed March 24-26, 2025 reflecting the current illustrated crediting rates, charges, and guaranteed/non-guaranteed benefits at the time the illustration was run; six-year benefit periods were chosen for consistency across competitive products compared to the NeverStop LTC annuity’s 5-year benefit period; $100,000 single premium deposit for single applicants for all products.
The varying factors among the compared products may include: any potential return earned on the product purchased, monthly LTC benefits, total LTC benefits, death benefits, and surrender values. Other product features that may vary across products include: elimination period, indemnity vs. reimbursement for LTC benefit payments, international benefits and others. The NeverStop LTC annuity values are based on a Preferred rate class, assuming the following account allocations: 25% in the fixed account, 50% in the S&P 500 1-year point-to-point participation index, and 25% in the S&P MARC 5% excess return 1-year point-to-point participation index.