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Old 01-24-2016, 02:42 AM
 
71,643 posts, read 71,777,271 times
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the hybrids are not really LTC INSURANCE .

they are whole life policy's that pay out a bit more then what the death benefit is up front day 1 if you need care .

if you do not need care all you get is face value like any other policy except the interest rate is lower ..

you are buying a whole life policy with a twist . if you would not buy whole life you don't want a hybrid . the minimum you need to start a hybrid is around 50k .

but :

Consider a 60-year-old man who puts $150,000 into a hybrid policy with a maximum death benefit of $169,265. If he eventually needs long-term care, the policy will pay $5,519 a month for up to four years, a benefit that compounds at 5% a year, If he dies having never received long-term care, his heirs receive the death benefit, which declines to $150,000 after nine years.

But if he puts his $150,000 into an investment with a 4% return, he will earn $6,000 a year—enough to buy a four-year traditional policy with a monthly benefit of about $11,000 that compounds at 5% a year,. That's about double the hybrid's monthly benefit—and the man can always leave the $150,000 in principal to his heirs. The risk, of course, is that the investment returns won't cover his premiums.

but that is why we pay more for the guarantee's of insurance

Last edited by mathjak107; 01-24-2016 at 03:32 AM..
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Old 01-24-2016, 08:13 AM
 
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^^ but one case is paying a monthly premium of 300 or so….as one goes along over the years.
The other is putting the entire 150K aside and investing it at once, no? Dare I say most people can't do that.

Is my math wrong? even at 300 a month for 20 years (paying a premium from 60-80 yrs old) -- isn't 150K?
More like 72K, no?
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Old 01-24-2016, 09:58 AM
 
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in order to get the coverage you need with a hybrid you need that lump sum . they are single premium and coverage is limited to what you put in .
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Old 01-24-2016, 01:18 PM
 
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I'm lost. But that's ok.
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Old 01-24-2016, 01:24 PM
 
71,643 posts, read 71,777,271 times
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the ltc policy's that give your heirs back the money are single premium life insurance policy's with an ltc rider .
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Old 01-24-2016, 01:46 PM
 
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Yes I know that.
I'm lost as to why the comparison of "a 60-year-old man who puts $150,000 into a hybrid policy with a maximum death benefit of $169,265.…to investing 150K and earning 6% they don't' seem comparable to me

Whether the policy is a hybrid OR tradition 20 years of premiums -- or "money invested" wouldn't be 150K you speak of id' be 72K. I especially don't get it because most people don't have the lump 150K to invest as you seem to be using in your example….

Like I said…. there's something about that math I don't' get.
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Old 01-24-2016, 01:51 PM
 
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not following the question .

the death benefit on the hybrid gets little interest other then a death benefit which is what was put in . the interest pays for the ltc coverage .
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Old 01-24-2016, 02:00 PM
 
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One of my hybrid quotes was $250.00 a month policy max of 250K.
Premiums for 30 years (to age 84) would only be 90K…..and since people are always pushing how you never know when you'll need it..if God forbid I used the policy at 75 I'd be into the policy for only 60K

And even the death benefit for heirs if I never used it would be 225K.

I guess I just don't understand why a hybrid isn't a valid option to consider….and why you are using the example of the 150K into a policy -- to suggest that it isn't. Why would a 60-year-old even be into any LTC policy for 150K?
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Old 01-24-2016, 02:48 PM
 
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what would 250k get you 20-25 years from now ?

in our area we are at 120-135k a year right now .

even at 3% inflation 250k will buy you 125k worth of care in 25 years . what will that home cost in 25 years ?

most folks want at least 3 years inflation adjusted coverage . if asset shifting is involved they want 5 years . my dad was in a home for 6 years . my co-worker who had a stroke- permanently now .

how big of a hybrid policy would someone need to clear 5 years with enough to pay for a home 25 years from now ?

if you have assets you want to protect you need to be able to cover 5 years worth of time , based on not today's cost but 25-30 years from now .

a hybrid like that would accomplish nothing and the assets would be taken or have to be sold to pay for care .

Last edited by mathjak107; 01-24-2016 at 03:04 PM..
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Old 01-24-2016, 03:58 PM
 
Location: SoCal
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So it's not clear to me that if you pay for ltc and then you are qualify for LTC payment, do you stop paying the premium? Or do you have to continue to get the payment.
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