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Old 11-19-2011, 01:20 AM   #21
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There are two ways that most people buy LTC policies - short and fat benefit periods (ex: $7500/mo for 4 years shared) or tall and thin benefit periods (ex: $3k/mo for 12 years shared). It sounds like a "tall and thin" benefit would suit your needs pretty well.
Interesting idea, dgoldenz. When I whined to my LTC co. about their latest increase in premium, they suggested what you suggested, but they didn't state the idea in your terms. To them, it was simply a way to suggest a lower premium. The way you have stated it, it actually makes sense.
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Old 11-19-2011, 02:49 AM   #22
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Outside the box thinking - why not just buy a policy with a lower monthly benefit and shorter benefit period? That would allow you to use some of the benefits up front at a reduced cost versus a comprehensive "cover everything" policy and then self-insure the back end of an extended claim, while still keeping your premiums at a very reasonable level. Instead of self-insuring the full first 2-3 years, you would set aside the money for ~50% of a nursing home claim because the insurance wouldn't pay for all of it.For example, why not consider something like a $2250/month or $3000/month benefit with a 2-3 year benefit max instead of the $4500/mo or $6k/mo that most people would buy?

There are two ways that most people buy LTC policies - short and fat benefit periods (ex: $7500/mo for 4 years shared) or tall and thin benefit periods (ex: $3k/mo for 12 years shared). It sounds like a "tall and thin" benefit would suit your needs pretty well.
This is very interesting and worth some more analysis.

I think Youbet is looking for a"guaranteed" max payout from assets with his question. But, your suggestion, with a little actuarial work that would "guarantee?" essentially the same result might fit the bill.
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Old 11-19-2011, 02:53 AM   #23
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I have a separate question on this subject.

Has anyone purchased LTCi from the Fed Govt system that is available for civil service workers? Or, does anyone have knowledge of it?

I'd like to know how it's choices and premiums compare? Also, does it provide any more certainty that the LTC companies will still exist when/if one needs the policy?
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Old 11-19-2011, 07:33 AM   #24
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Originally Posted by Huston55 View Post
I have a separate question on this subject.

Has anyone purchased LTCi from the Fed Govt system that is available for civil service workers? Or, does anyone have knowledge of it?

I'd like to know how it's choices and premiums compare? Also, does it provide any more certainty that the LTC companies will still exist when/if one needs the policy?
I don't have a policy from them, but there's a lot of information at their web site (premiums, various coverage options, etc). http://www.ltcfeds.com (web site being repaired right now, expected to be operational again 19 Nov afternoon, EST)

Observations:
1. Unlike private policies, you can't get a policy that shares benefits between you and your spouse. That leads to some inefficiencies for those of us who only want a policy that covers the "first to need it".
2. If you are in good health, you may be able to find cheaper LTCi through a private policy.
3. I think the federal program probably does offer a bit of protection against an insurance company that is unwilling to pay a justified claim, and some protection against increases in premiums (thought they just had one). With the OPM involved and a lot of customers in the pool, they've got some pull to keep prices down and to find a new carrier if one exits the business.
4. You can get a policy that pays premiums for an indefinite period. I don't know if this type of policy is commonly available through private insurers.
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Old 11-19-2011, 10:30 AM   #25
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This is very interesting and worth some more analysis.

I think Youbet is looking for a"guaranteed" max payout from assets with his question. But, your suggestion, with a little actuarial work that would "guarantee?" essentially the same result might fit the bill.
He could do something like an unlimited benefit period with a 365-day waiting period and a lower benefit amount like $3k/mo instead of $4500-7500/mo. The numbers could be played with until an acceptable premium/benefit amount combination was reached.

Genworth also offers an enhanced survivorship benefit that says after 7 years of paying premiums, if one spouse dies regardless of claims made, the surviving spouse has a paid-up policy for life. Their regular survivorship benefit does the same thing, but after 10 years and must have no claims made. Very important feature for couples under age ~65 or so IMO.
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