Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-15-2015, 04:26 PM   #121
Thinks s/he gets paid by the post
 
Join Date: May 2014
Posts: 2,994
Quote:
Originally Posted by REWahoo View Post
Typo? $2,600/year x 20 years = $52,000.
Da*n. I should not try and do Math in my head. But, to be fair, he didn't catch it, either.
__________________

__________________
athena53 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-15-2015, 05:37 PM   #122
Thinks s/he gets paid by the post
Katsmeow's Avatar
 
Join Date: Jul 2009
Posts: 3,399
Quote:
Originally Posted by athena53 View Post
Da*n. I should not try and do Math in my head. But, to be fair, he didn't catch it, either.
And, even so, $52k to get $140k in coverage (not considering what that $52k would have earned and the fact that is paid over a period of years, but not considered inflation either) seems underwhelming to me). So the benefit is what $88k in extra benefit over just putting the $2600 a year in a CD each year. I'm not thinking that for most getting that $88k in benefits will really make or break anyone with any assets.

It just seems like too much cost for not enough benefit....

SamClem - I like your ideas for your ideal policy and I would love to have that kind of thing available as well.
__________________

__________________
Katsmeow is offline   Reply With Quote
Old 01-15-2015, 06:33 PM   #123
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,123
Quote:
Originally Posted by Katsmeow View Post
And, even so, $52k to get $140k in coverage (not considering what that $52k would have earned and the fact that is paid over a period of years, but not considered inflation either) seems underwhelming to me). So the benefit is what $88k in extra benefit over just putting the $2600 a year in a CD each year. I'm not thinking that for most getting that $88k in benefits will really make or break anyone with any assets.

It just seems like too much cost for not enough benefit....
+1

We certainly wouldn't have purchased our two LTCI policies back in 2001 if the numbers looked anything like those quoted in this example. Each of our policy limits, after factoring in the 5% compounded annual benefit increase, are now up to $6,000/mo for 3 years, a total benefit of $216,000. For this we have each paid $9,050 in premiums over the past 14 years.

Even with a 50% increase in annual premiums last year (from $584 to $875) I'm still comfortable with keeping the policies - and hoping every penny we pay in premiums is a complete waste...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 01-15-2015, 06:57 PM   #124
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by athena53 View Post
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
__________________

__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Genworth 2013 LTC Cost Study mickeyd Health and Early Retirement 1 05-02-2013 06:23 AM
Assessment of Status of New Federal LTC Insurance in final health bill. samclem Health and Early Retirement 6 01-01-2010 11:17 AM
(FAQ archive): Long-term care (LTC) and LTC insurance Nords Early Retirement FAQs 0 10-24-2007 12:02 PM
New Withdrawal Rate Study cyclone6 FIRE and Money 35 06-03-2006 10:02 PM
New Study: What People Spend in Retirement REWahoo FIRE and Money 4 01-29-2005 04:29 PM

 

 
All times are GMT -6. The time now is 11:09 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.