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Conversationalist
Posts: 5
Registered: ‎04-22-2015

Re: Long Term Care insurance policies cost

Message 11 of 21 (1,632 Views)

That was a VERY good deal.  Not doable at your age today or better said, not doable for anyone today.  Our premium began 18 yrs ago at about $2,200, now $3,000+.  I don't know how much the benefits have compounded. But it's easy to call and find it.  As noted, the money is shared between me and spouse.  If I use 40%, spouse can tap into the other 60%.  When the fund is done, that's it.  Premiums are waived when we start taking benefits.  

Info Seeker
Posts: 1
Registered: ‎11-02-2012

Re: Long Term Care insurance policies cost

Message 12 of 21 (1,652 Views)

My wife and I are 78 years old and we both have long term care insurance. We took out the polices in 1996 (21 years ago) and the premiums were $180 per year, each. They are now $1,348/year each. Our long term care benefits started out at $100/day and increase $5/day each year and are now at $210/day, or $6,300 per month. This daily benefit will provide coverage in many nursing  care facilities at todays prices. Also, our benefit is for life time care coverage, with no number of years limit. The increases have been subatantial the last few years and I shopped around for alternative insurance coverage and found out that what we have, life time coverage, is not available any more and  all were much more costly. After looking at our annual cost of $1,348 compared to one year in a nursing home at $75,000, it appears we still have a good deal. The insurance company is Ameriprise River Source. Robert B.

Gold Conversationalist
Posts: 68
Registered: ‎08-27-2013

Re: Long Term Care insurance policies cost

Message 13 of 21 (2,221 Views)

When I moved into an independent/assisted living facility, my aim was to be able to transition from one to another, since I was living alone.  My financial advisor used the money from the sale of my home to put into an annuity.  The interest I earn goes from that into a fund to pay if I should need to move to assisted living.  I pay tax on this interest every year on the amount that goes to this fund.  If i pass away and do not need assisted living , the annuity stays and goes to my beneficiary or whatever amount is left if I did move to assisted living. Basically it's a win-win for me as I know I could not afford to buy long term insurance at my age.

Silver Conversationalist
Posts: 30
Registered: ‎11-20-2012

Re: Long Term Care insurance policies cost

Message 14 of 21 (2,462 Views)

Just read an excellent article on long term health care.Here is link,if allowed by AARP.

 

https://investorresources.weissratings.com/not-properly-preparing-for-the-exorbitant-cost-of-long-te...

Conversationalist
Posts: 5
Registered: ‎04-22-2015

Re: Long Term Care insurance policies cost

Message 15 of 21 (2,392 Views)

The question of whether the pricing is "standard" can't be answered without knowing the benefit level.

 

Our LT policy increases benefits at a compounding rate annually.  We had the choice of a simple interest increase but decided to pay more for the policy to take a compounding rate.  The premiums have also increased over time.  For years they remained the same but when the insurer changed hands, the new owners quickly set about boosting rates.  They're now more than 50% higher than when the policy was initiated.  

 

The policy gives us a "pool" of money shared between me and spouse.  Either or both can benefit until the funds top out.  

Bronze Conversationalist
Posts: 25
Registered: ‎04-06-2013

Re: Long Term Care insurance policies cost

Message 16 of 21 (2,621 Views)

I am 66 and she is 63.  We have a 5 year payout policy, right now about 8000 a month (each - compounding at 3% for the next few years, until they jack up the price again).

Conversationalist
Posts: 9
Registered: ‎09-01-2017

Re: Long Term Care insurance policies cost

Message 17 of 21 (2,511 Views)

Not knowing what benefits he has in his policy (e.g. cost of living adjustments, home care and facility care, term of benefits, daily benefit etc), $1200 annually seems reasonable.

The insurance companies have terribly underpriced long term care and many have lost money and no longer offer the policies.  Those that do continue to offer coverage need to increase their prices to avoid losses. For anyone who has not purchased, if you find a company that provides a fixed price (sometimes offered if you pay all of the premiums at once or agree to 10 fixed annual payments), then you avoid the cost increases.

Highlighted
Info Seeker
Posts: 2
Registered: ‎02-06-2016

Re: Long Term Care insurance policies cost

Message 18 of 21 (2,592 Views)

Can I ask how old both you and your wife are?

 

Bronze Conversationalist
Posts: 25
Registered: ‎04-06-2013

Re: Long Term Care insurance policies cost

Message 19 of 21 (2,573 Views)

Consider yourself very lucky.  Last year UNUM tried to increase our LTC premium by 280%!  This is after a 20% increase in 2008 and a 30% increase in 2011 (we took out the policy in 2005).  Our policy had a 5% compound inflation rider but they offered to keep the premium the same (ie no 280% increase), if we reduced our inflation coverage to 3%.  My wife and I are now paying $1500 a year each.

Trusted Social Butterfly
Posts: 7,098
Registered: ‎02-14-2008

Re: Long Term Care insurance policies cost

Message 20 of 21 (2,517 Views)

Is this a relatively standard price?  The policy does have a built-in Cost of Living Adjustment Rider.

 

Based on the costs I have seen, you're paying a lot less than other policies costs.  It's difficult to say because we would have to know exactly what kind of coverage you have and compare it to other companies. You can find that info online.


Just think. The world was built by the lowest bidder.