merlin3942
Recycles dryer sheets
- Joined
- Jun 9, 2014
- Messages
- 67
Hi all,
Been considering an LTC policy. I've read through most of the previous threads on this topic, but most of them seem to be pretty old, so thought I'd see what some of the "current thinking" is. I live in a state with LTC "Paternership" program with certain insurance companies, to encourage folks to purchase it. In addition to the "dollar-for-dollar" spend-down protection, yearly premiums are deductible from state income tax.
I'm 58, and have qualified for an LTC Partnership policy with the following benefits:
[FONT="]$5800/mo. benefit with 5% annual compounding[/FONT]
[FONT="]Unlimited coverage[/FONT]
[FONT="]90-day elimination period[/FONT]
They are offering a "10-year payment option", where I pay annual premiums of about $9700 for 10 years, and then the policy is paid in full. If I were to require LTC services before 10 years, the policy goes into effect immediately, and I don't pay any further premiums. It is possible that the rates could be raised prior to 10 years ... but only if they raise their rates across the board (i.e., they can't single out existing customers to raise premiums).
I can afford the premiums without significantly altering my ability to FIRE (just have to get past my "OMY" syndrome ;-) ) so I'm seriously considering doing this.
Would be interested in hearing arguments both for or against, or any other factors I should consider in order to decide.
Thanks!
Been considering an LTC policy. I've read through most of the previous threads on this topic, but most of them seem to be pretty old, so thought I'd see what some of the "current thinking" is. I live in a state with LTC "Paternership" program with certain insurance companies, to encourage folks to purchase it. In addition to the "dollar-for-dollar" spend-down protection, yearly premiums are deductible from state income tax.
I'm 58, and have qualified for an LTC Partnership policy with the following benefits:
[FONT="]$5800/mo. benefit with 5% annual compounding[/FONT]
[FONT="]Unlimited coverage[/FONT]
[FONT="]90-day elimination period[/FONT]
They are offering a "10-year payment option", where I pay annual premiums of about $9700 for 10 years, and then the policy is paid in full. If I were to require LTC services before 10 years, the policy goes into effect immediately, and I don't pay any further premiums. It is possible that the rates could be raised prior to 10 years ... but only if they raise their rates across the board (i.e., they can't single out existing customers to raise premiums).
I can afford the premiums without significantly altering my ability to FIRE (just have to get past my "OMY" syndrome ;-) ) so I'm seriously considering doing this.
Would be interested in hearing arguments both for or against, or any other factors I should consider in order to decide.
Thanks!