We have had long term care coverage since it was offered to my previous MegaCorp about 25 years ago in our early 30's. It was a portable policy. We had no kids at the time and I thought it would be good for us just to buy that coverage. The bill was $1080 per year for 2 of us. <snip> Unlimited lifetime max coverage. The coverage comes to $7756 for each of us per month max. I don't know how much we've paid over the years for this coverage. Probably ~ $35K or more. I wouldn't dream of canceling it today. I expect that before we reach the age of 70, we'll be hit with one or two more 50% increases. We're both 57 today. Hope this helps. John Hancock Policy.
Very similar story here: bought in my 30s from Megacorp, policy is now with John Hancock. Cost of living adjustments every three years, with one big hike last year due to rate adjustments. Now, at 57, I pay about $1000 per year. I have scaled my policy so that it will cover assisted living/memory care, but not skilled nursing; I will self-insure for the difference if necessary.
Unlimited lifetime max coverage. When the policy moved from Met Life to John Hancock, the JH guy advised me to never let this go. No one offers this anymore.
Why buy before I'm in my 70s and can decide if I need it or am wealthy enough to self insure? LTC insurance isn't old-age insurance: if you have a stroke in your 40s, or are in a horrific car accident you may need LTC. And there's a good chance you'll need if for more than 90 days, (the exclusion period). I don't have family who could drop everything and be my caregivers.
My parents bought LTC insurance about 15 years ago at ages 70 and 75. After a few years they turned down the COLA, deciding they had sufficient assets to self-insure for the difference in costs created by ongoing inflation. That froze their premiums. Their policies had lifetime caps of $154K.
Fast forward: my father paid about $36K in premiums, and only got $28K in payout (he never went into a nursing home, so they covered his home health care at a lower rate). Bad investment? Sure, but he had peace of mind. That's insurance.
My mother paid about $28K in premiums, which were then waived when she went on payout. She has dementia and is in a facility. She, now 87, will likely go through her $154K in 3.5 years, and then we will have to cover the $6K per month until her body finally gives out. Bad investment? Clearly not.
I may follow the same strategy: at some point decline the COLA and decide to self-insure for some portion of LTC expenses.
BTW, NY Life has been fabulous to work with for my parents' claims. No push back at all about whether they should be paid.
Again, remember that LTC isn't just a problem for the elderly. Do you have people who would take care of you now if catastrophe hits?
At least, that's my thinking....