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Thumb of Michigan | A lot of variables can be involved with LTC insurance.
Here are some, length of coverage, 2,3.4.5,6 years or lifetime. Daily amount of coverage. Home care coverage or not, Deductible period 0, 20, 90 or 180 days usually. Inflation rider (and even that can have simple or compound factor).
What I'm trying to point out it's similar to asking about car insurance, A new Cadillac with full coverage and a $100 deductible in the city of Detroit probably cost more than a 20-year-old GEO with just barebones coverage, out in the sticks,
To your question:
My wife and I have an indemnity type policy (no longer available, everything sold today are re-imbursement type of policy), so my numbers are even going to be harder to do an apples-to-apples comparison.
We have 90-day deductibles, 2 years (730 days) of coverage, with a 5% compound inflation rider. Present daily benefit is ~$355, Home Care~$177 a day, cost just over $1,1.02.00 annually (started out at around $250 a year). Took policies out 20+ years ago (in our late 40's)
FYI - indemnity type policies, pay the stated amount per day, re-imbursement (newer) type, re-imburse up to daily benefit amount. Example if Nursing Home charged $325 a day and you had a reimbursement type policy with a daily benefit $300. It would re-imburse $300, an indemnity type policy at $350 daily benefit would pay out the $350, even though the cost is only $325 a day. And if the cost is lower than the daily benefit with the newer policy's, the extra left-over money remains available for later use if needed. Clear as mud maybe.
BTW - if I was starting today, I'd be looking at a variable or universal life insurance policy with a nursing home/home care rider attached (sometimes called a hybrid policy). Some have a cash back feature (up to 100% after so many years), along with a death benefit and nursing home coverage (a percentage of death benefit and reduces death benefit if used). These types of policies are more expensive than what I have (that's grandfathered), but what I have is a 'use it or lose it' policy. Which is exactly like it sounds, if I don't ever go into a nursing or need at home care, I will never benefit from the coverage/premiums I paid.
Email is in profile if you want to know how I would go about designing individual coverage for someone. | |
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long term care insurance
