My husband and I recently met with our financial advisor to discuss long term care insurance. My husband is 61 and I am 60. The plan he chose for us is one with an available benefit of $360,000 each and a maximum monthly benefit of $8500. He also added a shared care and a survivorship benefit rider. The monthly premium is around $500 for a standard policy for the two of us, around $440 if our applications qualify for the premium policy determined by underwriting. The policy can be paid off in 10 years, but the monthly premium increases a lot. Since we cannot afford that premium, we would pay a lifetime monthly premium until a claim is filed. This particular company is increasing the monthly premiums very soon for long term care which is why we were encouraged to lock in now. We are currently waiting for the approval. We are wondering if this sounds like a decent plan or if we need to get another quote to make sure.
Terry Says: It’s difficult to judge this deal, not knowing the insurance company and all the caveats. But you are going to lay out a lot of money for a policy you might not, hopefully not, need to use. So perhaps you might want to consider a life insurance policy with a long term care rider. Then if neither of you uses the LTC benefits, your beneficiaries get the life insurance proceeds! May I suggest you contact my LTC experts, Brian Gordon and Peter Florek at MAGA LTC — 800-533-6242.
(You can use my name or not, as I get nothing out of this. But I trust them completely. At least you will have some alternatives to compare.)