Ready
Thinks s/he gets paid by the post
MIL has been paying for a Genworth LTC policy for many years. She currently has paid in about $41K. Her annual premium was $3500 but next year the rate is going up 72% to $6,100.
She has the option of reducing the benefit from lifetime (first 100 days excluded) to a cap of six years. Either way the maximum benefit is $150/day. She is 85 years old, in reasonably good health. I’m new to reviewing LTC policies so I’m not sure if I’m fully knowledgeable on how they work.
My initial thought is that six years seems like a lot of coverage for someone who is already 85 years old. She has enough money to self insure anyway, so if she really needed more than six years of care she would be fine.
Does it make sense to reduce the premium and go with a six year cap. The rate would be $3,800/yr, so a little higher but not too bad of an increase.
Is there anything else I should be aware of before we recommend something to her?
She has the option of reducing the benefit from lifetime (first 100 days excluded) to a cap of six years. Either way the maximum benefit is $150/day. She is 85 years old, in reasonably good health. I’m new to reviewing LTC policies so I’m not sure if I’m fully knowledgeable on how they work.
My initial thought is that six years seems like a lot of coverage for someone who is already 85 years old. She has enough money to self insure anyway, so if she really needed more than six years of care she would be fine.
Does it make sense to reduce the premium and go with a six year cap. The rate would be $3,800/yr, so a little higher but not too bad of an increase.
Is there anything else I should be aware of before we recommend something to her?