It has now become obvious that, with yet another announced steep hike in the long-term care premium, you are on the brink of totally “drying up” the life insurance “well.” Meanwhile, although you have seen some nice growth this year in your investment portfolio, most of your funds are in retirement accounts, and withdrawals would trigger tax* (precisely the effect you had been trying so hard to avoid by paying premiums with funds transferred out of the life insurance)!
Consider allowing the equity built up in your home to “take over” the task of providing tax-free* funding of premium payments needed to keep your long-term care insurance policy alive. With a reverse mortgage set up as an equity line of credit, you will be able to pay the long-term care premiums without triggering income tax liability.*
Just as when a rescuer is performing CPR and a second person is available to relieve the first, the asset value you’ve built up in your home can ‘take over” the function performed by the cash value in your life insurance policy, keeping your lifetime long-term care protection – protected.
*Please consult a tax advisor. Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.