The need for LTC is the type of risk that I think makes sense to insure against. Unfortunately, the market doesn't sell a policy that meets my needs. What I'd want:
- A stable company with a long history of paying claims reliably and not raising rates (accurate underwritning/accurate cost projections are signs of competence. Not many insurance companies have demonstrated competence WRT LTCI).
- Shared coverage: We only need coverage if one of us needs LTC and the other is still living without it, so a shared benefit policy is more efficient than buying two individual policies. Once one of us dies, if the other needs LTC then SS, sale of the house and other assets, our nest egg, and a pension check will cover the bill. In the unlikely event that we both need LTC at the same time, I'd be wiling to gamble that the period we'd both need help would be short.
- True insurance: We can self-insure for a big chunk of this risk, and would like to do so. I'd like a 24 month exclusionary (waiting) period, and then about 7 years of shared benefits at a modest $/day benefit rate (again reflecting the fact that we can self-insure somewhat. We don't need every nickel of care paid for by the insurance).
We haven't found a policy like that. If we could, I'd guess the premiums might be fairly reasonable, given the self-insurance we're willing to do.
