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Re: Disability policy conversion to LTC at age 65

Posted by George A Mellendorf on September 29, 2002 at 18:55:11:

In Reply to: Re: Disability policy conversion to LTC at age 65 posted by bluemarlin on September 17, 2002 at 12:40:28:

HI:

You may want to consider purchasing a free standing LTCI policy with a Cost of Living Increase (COLI) rather than one that is offering equal or compound inflation. Address the inflation issue once you reach age 65 or so.

As an example, a benefit of nearly $55,000 per year ($150/day) at home or outside of the home can be less than $70.00 per month for a lifetime benefit. The premiums will very base on health and martial status.

I have been around the long-term care insurance business for over 23 years and one observation that I have made; Is, the care will gravitate to the dollars available for care.

The congressional budget office www.cbo.gov has projected that the costs of nursing home care will increase at a rate of 2.6% from the years of 2000 through 2040. There is a lot of talk about deflation, I do not have a crystal ball, but I do know that 55K is a lot of care in most states, considering assisted living is about 3K per month.

I see what you see from what your financial advisor is suggesting. Three years at 100 per day and 50 per day at home. What happens after three years?

You are on the right track, send me an email if you wish.

My Best: George Mellendorf

Follow Ups:

Re: Disability policy conversion to LTC at age 65 : HI: : You may want to consider purchasing a free standing LTCI policy with a Cost of Living Increase (COLI) rather than one that is offering equal or compound inflation. Address the inflation issue once you reach age 65 or so. : As an example, a benefit of nearly $55,000 per year ($150/day) at home or outside of the home can be less than $70.00 per month for a lifetime benefit. The premiums will very base on health and martial status. : I have been around the long-term care insurance business for over 23 years and one observation that I have made; Is, the care will gravitate to the dollars available for care. : The congressional budget office www.cbo.gov has projected that the costs of nursing home care will increase at a rate of 2.6% from the years of 2000 through 2040. There is a lot of talk about deflation, I do not have a crystal ball, but I do know that 55K is a lot of care in most states, considering assisted living is about 3K per month. : I see what you see from what your financial advisor is suggesting. Three years at 100 per day and 50 per day at home. What happens after three years? : You are on the right track, send me an email if you wish. : My Best: George Mellendorf

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