Originally Posted by athena53
He gave a presentation on LTC with a real example (name blacked out, of course) of an insurance company quote.
56-year old female, coverage of $3,900/month, max 3 years of payments or $140K. 60-day waiting period, 3% annual COL increase. $2,600/year premium.
The LTCI program offered to federal employees and federal retirees has rates fairly close to those of commercial providers (it gets no subsidy from the government, and when I compared their prices to quotes I got from Genworth, they were about the same).
For a better policy than the one described in the OP (56 YO, slightly more coverage ($150/day instead of $130/day), slightly longer elimination period (90 days instead of 60--the fed program doesn't offer a 60 day elim period), 4% inflation increase instead of 3%, the annual premium came out to less than $1500 (over 40% less than the premium in the OP). So, I don't think the illustrated policy was an especially good deal, and might not be representative of what is available (or maybe the insured person had some medical issues, etc).
The Federal LTCI calculator is a good place to find ballpark figures for LTCI and see how changing various factors changes the cost. These policies are subject to medical underwriting, but I think their standards might be a bit less stringent than some others so it's possible someone in great health could get a slightly better rate from an insurer. All policies are for individuals (no couples), and men pay the same as women. Link