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Re: LTC premium cost

Posted by Steve Eads, CLU on July 17, 2001 at 13:19:12:

In Reply to: LTC premium cost posted by Michael Hood on July 16, 2001 at 09:22:32:

: I keep reading here and elsewhere that a consumer should shop and find the lowest premium for comparable benefits. However, it appears to me that we are buying a benefit to be paid in 25 years for a need the insurance company cannot specifically define which means the insurance company actually doesn't know how to price the product. Therefore, all premiums will increase. And, the more liberal the benefit definitions of the product, the more the premium will increase. Therefore, to be overly price focused versus, looking financial strength of an LTC insurance carrier and commitment to the market is somewhat short sighted. Am I missing something?

There's an old saying, "if bigger were better, Miss America would weigh 600 pounds." Well, that certainly doesn't pertain to LTC insurance companies and policies. The Devil is most definitely in the details of LTC insurance contractual language. Policy language and one's ability to compare contractual definitions and legalese is critically important in comparing LTC plans. I totally agree with Scott Olson, we came from the same basic schools of thought, cheaper is not better and price should be your last basis of comparison. The primary question should always be..."what happens at claim time under each major type of care rendered, and what are the limitations."

Unless you are knowledgeable in the LTC (services) industry, not just the LTC insurance industry, your research is likely to fall short of it's intended goal. Comparing policies requires a clear understanding of how LTC services are truly delivered in the real world.

Then and only then can you understand how a contract is utilized at claim time. IT'S TOUGH.
Hire an expert LTC insurance broker who specializes in LTC insurance.

Go to this sites request for quotes to be introduced to someone near you that can help you in your search.

Great question, serious answer!

Steve Eads, CLU
seads@dbtech.net

Follow Ups:

Re: LTC premium cost Margaret Hobson 21:36:55 02/03/02 (0)

Re: LTC premium cost : : I keep reading here and elsewhere that a consumer should shop and find the lowest premium for comparable benefits. However, it appears to me that we are buying a benefit to be paid in 25 years for a need the insurance company cannot specifically define which means the insurance company actually doesn't know how to price the product. Therefore, all premiums will increase. And, the more liberal the benefit definitions of the product, the more the premium will increase. Therefore, to be overly price focused versus, looking financial strength of an LTC insurance carrier and commitment to the market is somewhat short sighted. Am I missing something? : There's an old saying, "if bigger were better, Miss America would weigh 600 pounds." Well, that certainly doesn't pertain to LTC insurance companies and policies. The Devil is most definitely in the details of LTC insurance contractual language. Policy language and one's ability to compare contractual definitions and legalese is critically important in comparing LTC plans. I totally agree with Scott Olson, we came from the same basic schools of thought, cheaper is not better and price should be your last basis of comparison. The primary question should always be..."what happens at claim time under each major type of care rendered, and what are the limitations." : Unless you are knowledgeable in the LTC (services) industry, not just the LTC insurance industry, your research is likely to fall short of it's intended goal. Comparing policies requires a clear understanding of how LTC services are truly delivered in the real world. : Then and only then can you understand how a contract is utilized at claim time. IT'S TOUGH. : Hire an expert LTC insurance broker who specializes in LTC insurance. : Go to this sites request for quotes to be introduced to someone near you that can help you in your search. : Great question, serious answer! : Steve Eads, CLU : seads@dbtech.net

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