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Yes, I think so. You know, the paperwork said it was a 'personalized' option. I didn't believe that, but maybe it is!
Have another look. We are signed up for $100 day, 3% increase/yr. Not a lot of money, but we think it might be enough with our federal retirement, savings, and ss.
So this is hardly an exhaustive analysis, but if you don't maintain your coverage at current levels you will be saving $1800 per year (not paying the increased premiums), and you would lose $82/day in benefits ($210 - $128), If you divide the $1800 by $82, it works out to 22 days. So, in rough terms, it only takes spending 22 days in a nursing home where you have to put out $82/day (out of pocket) to end up spending more than the premium saved. It is a pretty short period of time to recover your increased premiums. Not sure what your financial resources are to absorb the premium increase, but I's probably pay it if I could afford it.
This is true, but must be weighted by the odds that you'd ever use the policy. Most people still don't. It also assumes you needed the payout in one year. What about 10 years from now? 222 days, and that's ignoring the time value of money.
This is true, but must be weighted by the odds that you'd ever use the policy. Most people still don't. It also assumes you needed the payout in one year. What about 10 years from now? 222 days, and that's ignoring the time value of money.
Which is why I said it was hardly an exhaustive analysis. I was merely trying to give a very basic characterization of the cost increase relative to the lost benefits. I think it conveyed the point about how quickly one could (could not will) quickly recoup the increased premium costs if one required long term care. I look forward to seeing your probability-based discounted cash flow analysis demonstrating the correct answer for the OP.
^ why would I do such a financial model without having any definitive information? You must be joking, or you think financial modeling is a waste of time.
And, for your information, DCF is just one tool in financial modeling. An important part, but not everything. It's often done badly anyway.
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