Long Term Care Insurance

[alan1]

I had an hour long meeting with a LTC Insurance broker yesterday. He presented options from six different companies. Because I insisted on a 5% annual benefit increase, it did drive the price a bit higher than I originally thought. He suggested that I consider 3 or 4% annual benefit increase, but I truly believe that as us boomers age, more and more of us may need LTC. Simple laws of supply and demand will drive up the cost of LTC faster than CPI. [MENTION=34298]Mac1958[/MENTION] do you think I'm being too aggressive thinking that 5% is the way to go?
I did learn that in my state, the LTC insurance companies can only petition the state for rate increases once every three years. My state has a tendency to deny rate increases, or if they grant them, it is always less than the insurance company asks for. In my state, rate increases for LTC insurance have averaged less than .25% annually over the past 20 years for existing policies. I can't think of any other type of insurance that has such a low rate of premium increase.
Transamerica and Genworth are looking like my best value. I'll probably pull the trigger in October or November. It's before my next birthday and after my guaranteed bonus which is more than enough to cover the annual cost.

 

[Mac1958]

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[MENTION=16165]alan1[/MENTION], TransAmerica and Genworth are both good companies. Regarding the inflation increase, I guess I'd have you consider two things:

First, on one hand the inflation rider does effect the premiums significantly, on the other hand insurance is worthless if you can't afford the premiums. Get as high a rider as you're comfortable paying for, but you're right, definitely get the rider.

Second, another one of the variables that determines premium level is the monthly benefit, so have your broker play with the figures between the inflation rider and the monthly benefit. In other words, what would a $5000 monthly benefit with a 3% inflation rider cost as compared to a $4000 monthly benefit with a 5% inflation rider? As with anything else, finding the right equilibrium is key.

The numbers will drive you freaking crazy.

.

 

[carthymc9]

I have no idea in here but i think you can wants some discount in the policy as well.

 

[strollingbones]

mom had genworth....now remember they will only pay so much....her policy paid for 3.5 years at 4 k a month...and they paid the remaining few dollars left when the policy ran out....they paid well and on time....they will even call you if there is a reason they are not paying that month...normally no invoice was mailed to them...paperwork stuff

 

[kghighroller]

There are some things brought up in this thread that are inaccurate. I run a nursing home and would be glad to answer any questions any or you may have regarding LTC insurance policies, payment options, nursing homes in general. Just reply here or better even send me a message.

 

[Mac1958]

There are some things brought up in this thread that are inaccurate. I run a nursing home and would be glad to answer any questions any or you may have regarding LTC insurance policies, payment options, nursing homes in general. Just reply here or better even send me a message.

Could you point a couple of the errors out? If the bad info is coming from me I'd like to know. You'd be an excellent resource on this.

.

 

[alan1]

There are some things brought up in this thread that are inaccurate. I run a nursing home and would be glad to answer any questions any or you may have regarding LTC insurance policies, payment options, nursing homes in general. Just reply here or better even send me a message.

Could you point a couple of the errors out? If the bad info is coming from me I'd like to know. You'd be an excellent resource on this.

.

Ditto.

 

[alan1]

There are some things brought up in this thread that are inaccurate. I run a nursing home and would be glad to answer any questions any or you may have regarding LTC insurance policies, payment options, nursing homes in general. Just reply here or better even send me a message.

First off, let's start with your opinion.
Do you think LTC insurance is worth its cost?
Do you have, or do you intend to purchase LTC insurance?

For facts, some more questions.
You say you run a nursing home,
What percentage of people in your facility have LTC insurance?
What percentage pay from their own savings or from family support?
I heard a statistic that says 95% of men under LTC die within 3 years, is that your observed experience?

 

[alan1]

mom had genworth....now remember they will only pay so much....her policy paid for 3.5 years at 4 k a month...and they paid the remaining few dollars left when the policy ran out....they paid well and on time....they will even call you if there is a reason they are not paying that month...normally no invoice was mailed to them...paperwork stuff

Just curious,
was your mom in a healthcare facility, or was the care given to her at home?