Passing on some experience in LTC Policies..
We began in 1994 with a policy from Travelers Insurance... The basic policy was $100/day, which, at the time was approximately the cost of a nursing home... about $35,000/yr. We bought after two health scares, and after seeing three relatives go in to nursing homes. At age 58, the thought of paying for nursing home care was pretty scary. Our two policies had an annual cost of about $1,000/person nursing home insurance cost. There are some weird rules that allow increases so today our cost is about $1100+ per person.
Travelers insurance became bankrupt, and the insurance was handled by Conseco, which also became bankrupt. The insurance is now held by SHIP, a Pennsylvania corporation which holds the existing policies in trust, and does not sell insurance. (As Brewer mentioned in this thread, the policies were not always stable or profitable.)
So, if we pay $2200 until age 85 in 2021, our total expense will have been about $55,000, or about 3/4ths the cost of one year in a nursing home.
It's not that simple. The insurance will only pay $36,000 of the roughly $70,000 yearly cost in our area. For us to upgrade to a $200/day insurance at our age, would cost about another $2,500 each, or a total of $7200/yr.
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There is a 40% chance that someone who has reached 65 will enter a nursing home where the average stay is two and half years, according to stats compiled by Morningstar.
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(Nursing Home costs in NYC or Long Island can be $135,000 or more.)
Gets confusing....
Here's an article that does a pretty good job of weighing the alternatives.
Long-term scare: The cost of insurance that covers?nursing home stays is soaring? - New York Daily News