SmartLockTM AUM Protection Analysis
Y-UFinancial | Confidential
This tool illustrates what a long-term care event does to your client's portfolio and your fee income and how SmartLockTM eliminates that risk entirely.
Set up the client scenario
Portfolio size
$3M
SmartLockTM one-time transfer
$50K
Client age
55
Your AUM fee
1.0%
How long is the care event
36 mo
Estimated SmartLockTM LTC benefit
Lifetime benefit. No cap. No expiration.
...
This benefit pays every month for as long as care is needed, for life if necessary. It never runs out.
What tax bracket is the client in? (unprotected side only)
No tax
10%
12%
22%
24%
32%
37%
SmartLockTM pays care costs as a tax-free insurance benefit under IRC 104. No income tax on the SmartLockTM portion. If the benefit drops to $25K/mo after the death benefit is exhausted and care costs more, the difference withdrawn from the portfolio is subject to income tax.
What does the market look like during the care event?
Flat
Bull market (+7%/yr)
Bear market (-10%/yr)
Downturn (-20%/yr)
Crash (-35%/yr)
Care cost inflation rate
0% (no inflation)
2%/yr
3%/yr
5%/yr
How many years after funding does care begin?
Years before care starts
Now
Remaining portfolio after care, without SmartLockTM
...
What is left of the client's wealth once care ends
Remaining portfolio after care, with SmartLockTM
...
Protected portfolio plus remaining death benefit
Remaining portfolio difference if care is needed
...
SmartLock™ estate vs unprotected estate
Annual AUM fee income at risk due to care, taxes, and inflation
...
vs. preserved with SmartLock™
Both sides move with the market. Only the unprotected side gets hit with full care withdrawals and income tax.
This is a stress test, not a prediction. The unprotected portfolio takes three hits at once: care cost withdrawals, income taxes on every withdrawal, and market losses forcing asset sales at the worst possible time. SmartLockTM covers care costs directly as a tax-free insurance benefit, so nothing is pulled from the portfolio while the death benefit is active. If care extends beyond what the death benefit covers, only the gap between the actual care cost and the $25K/mo lifetime floor comes from the portfolio. When care cost inflation is active, the SmartLockTM benefit stays fixed while actual care costs rise, so that gap grows over time. The monthly LTC benefit and death benefit shown are estimates based on actual product data and may vary by up to 10% from the final illustrated amount.
Without SmartLockTM
With SmartLockTM
Portfolio value month by month during the care event
SmartLockTM is a hybrid life/LTC policy that accepts funds from any source and provides lifetime LTC coverage.
This analysis is for illustrative purposes only. Results will vary based on individual client circumstances.
LTC benefit and death benefit figures are estimates based on actual product data and may vary by up to 10% from the final illustrated amount.
Individual states impose monthly LTC benefit caps that may limit the initial benefit shown, particularly at younger ages and higher transfer amounts. This analysis does not account for state-specific benefit limits. Actual illustrated amounts may be lower depending on the client's state of residence.
© Y-UFinancial LLC. All Rights Reserved.
This analysis is for illustrative purposes only. Results will vary based on individual client circumstances.
LTC benefit and death benefit figures are estimates based on actual product data and may vary by up to 10% from the final illustrated amount.
Individual states impose monthly LTC benefit caps that may limit the initial benefit shown, particularly at younger ages and higher transfer amounts. This analysis does not account for state-specific benefit limits. Actual illustrated amounts may be lower depending on the client's state of residence.
© Y-UFinancial LLC. All Rights Reserved.
