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Re: LTCI

Posted by Ron Downs on November 23, 2002 at 13:44:06:

In Reply to: LTCI posted by Mike A on November 17, 2002 at 22:59:16:

Mike,
The other responses have all brought up excellent points, and you should strongly consider a higher daily benefit, and/or a different plan with a weekly or monthly benefit.

Another important consideration, however, is your choice of elimination period. At your ages, the difference between a 30 day and 90 day elimination period should be minimal. The difference at claim time will be enormous. When you need help, 90 days can seem like an eternity, especially if you don't need care every day. Your 90 day elimination period could stretch into 6 months or more, unless you pay for care each day.

I have an associate who recommended that her mother purchase a plan with a 90 day elimination. Now that her mother is in the process of satisfying that elimination period, she is kicking herself for not recommending a shorter one. She's learned an expensive lesson, not only by having to pay for care for a longer period of time, but also in having to take much more time off work to supplement that care until the insurance kicks in.

Best of luck!

Ron Downs
President
LTC Navigators Insurance Services

: My wife and I are in our mid 50s and are considering buying a LTCI policy to supplement our other incomes in case we ever need LTC. Our financial advisor has come up with a plan from Lincoln Life (Allstate) with a daily benefit of $50, no lifetime maximum, 90 day wait, home care same as nursing home and benefit compounding of 5% every year. We can go a 10 pay also or pay monthly/yearly. Premium for both of us is about $100, or $215 per month for the 10 pay. Does this sound reasonable? Thoughts comments? Thanks.

Follow Ups:

Re: LTCI : Mike, : The other responses have all brought up excellent points, and you should strongly consider a higher daily benefit, and/or a different plan with a weekly or monthly benefit. : Another important consideration, however, is your choice of elimination period. At your ages, the difference between a 30 day and 90 day elimination period should be minimal. The difference at claim time will be enormous. When you need help, 90 days can seem like an eternity, especially if you don't need care every day. Your 90 day elimination period could stretch into 6 months or more, unless you pay for care each day. : I have an associate who recommended that her mother purchase a plan with a 90 day elimination. Now that her mother is in the process of satisfying that elimination period, she is kicking herself for not recommending a shorter one. She's learned an expensive lesson, not only by having to pay for care for a longer period of time, but also in having to take much more time off work to supplement that care until the insurance kicks in. : Best of luck! : Ron Downs : President : LTC Navigators Insurance Services : : My wife and I are in our mid 50s and are considering buying a LTCI policy to supplement our other incomes in case we ever need LTC. Our financial advisor has come up with a plan from Lincoln Life (Allstate) with a daily benefit of $50, no lifetime maximum, 90 day wait, home care same as nursing home and benefit compounding of 5% every year. We can go a 10 pay also or pay monthly/yearly. Premium for both of us is about $100, or $215 per month for the 10 pay. Does this sound reasonable? Thoughts comments? Thanks.

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