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Old 10-15-2017, 09:42 PM
 
Location: minnesota
6,338 posts, read 2,117,155 times
Reputation: 2168

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Quote:
Originally Posted by LTCShop View Post
The FPO increases your benefits every 2 years according to the CPI-U.
However your premium increases will be based upon your age at the time of the increase.

In other words, the premium increase is CPI-U plus a factor based upon your age at that time of the increase.

That's why the FPO is so much cheaper now.


The FLTCIP is NOT qualified as a Minnesota Long Term Care Partnership Program.

You should probably consider a Mass Mutual LTCi policy with a 3% compound inflation benefit or a Mutual of Omaha policy with a 1% or 2% compound inflation benefit (just increase the monthly benefit to compensate for the lower inflation benefit.)

Whatever you do, do it quickly. Mass Mutual's coming out with a new policy in the next 3 to 6 months and you're probably better off with their current policy rather than the new one.

(fyi... most agents do NOT represent Mass Mutual.)
Can you link me up to an explanation on that? I'll go back to the website and see what I can find. It did seem weird to me that it was so much cheaper.

I'm probably wrong on the partnership thing. I'm OK with that. It would be nice but at our ages so much change by the time we would use it.
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Old 10-15-2017, 09:48 PM
 
Location: minnesota
6,338 posts, read 2,117,155 times
Reputation: 2168
I found this:

How is the 2018 FPO increase calculated?
For FLTCIP 2.0 enrollees, the Consumer Price Index for All Urban Consumers (CPI-U) is used to measure inflation increases.

The 2018 FPO increase for FLTCIP 2.0 enrollees is 3.02%.

For FLTCIP 1.0 and Alternative Insurance Plan (AIP) enrollees, the Consumer Price Index for Medical Care (CPI-M) is used to measure inflation increases.

The 2018 FPO increase this year for FLTCIP 1.0 and AIP enrollees is 6.79%.

Note: The additional premium for the increase, if you choose to accept it, is calculated using current premium rates and your age as of January 1, 2018.


https://www.ltcfeds.com/help/faq/201..._highlight=fpo

How do I know how much that is?
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Old 10-15-2017, 09:50 PM
 
Location: LTCShop.com
236 posts, read 113,100 times
Reputation: 151
Quote:
Originally Posted by Pintail07 View Post
Lets compare atraditional policy like you bought to an asset based one:

Are premiums guaranteed to never change?
Yours, no they can and do change. What if you faced a 100% rate increase as some have?
Asset based, can never change

Do the plans cover a long tail claim that may go on for 10-15 years?
Yours, sorry no
Asset based plans, yes lifetime coverage

If you never make a claim what happens to the premiums paid in?
Yours, lost.
Asset based, all returned

Is it partnership qualified?
yours, yes
Asset based, no.

You keep espousing how bad they are and much more expensive they are but never explain.

Obviously this is a product that is not suited for you.

Instead of using vague generalities, let's look at a real-life case.

I have a client, who is a woman aged 62.
She contacted me through my website insisting that she should buy a hybrid LTCi policy because she's heard so many bad things about LTCi rate increases.

We looked at all the top hybrids, as well as the traditional policies.


Here's the best hybrid for her:

Monthly benefit: $5,000
Death benefit (if care never needed): $125,000
Benefit Period: Unlimited
Lifetime cap: none
Annual premium: $6,193

Here's the best traditional policy for her:

Monthly benefit: $5,000
Death benefit (if care never needed): zero
Benefit Period: 6 years
Lifetime cap: $372,300
Annual premium: $2,281


Is it worth spending an extra $3,900 for the lifetime/unlimited benefit period? Probably not.
Is it worth spending an extra $3,900 for a premium that is guaranteed to never go up? Probably not. This company has been selling LTCi for 18 years and has never had a rate increase on any of their LTCi policyholders. Plus she lives in a state that has a Rate Stability Regulation. The median rate increase on LTCi policies issued in her state since 2003 is only 23%. More than half of the companies selling LTCi in her state haven't had any rate increases on any of the policies they've sold in her state since 2003.


Someone may be wondering about inflation protection. Adding a 3% compound inflation benefit to the hybrid policy would increase the hybrid premium to $8,069.

Adding the 3% compound inflation benefit to the traditional policy would increase that premium to $3,805. She'd still pay more than twice the premium for the hybrid.

This hybrid policy (which is by far the best hybrid policy) is usually better for couples (not singles) especially if the couple is in their 40's or 50's.


p.s. the single premium on the hybrid policy (with no inflation protection) would be $97,000. If she earns only 3.8% on that she'd be able to pay her LTCi premium every year just from the earnings.
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Old 10-15-2017, 09:53 PM
 
Location: LTCShop.com
236 posts, read 113,100 times
Reputation: 151
Quote:
Originally Posted by L8Gr8Apost8 View Post
I found this:

How is the 2018 FPO increase calculated?
For FLTCIP 2.0 enrollees, the Consumer Price Index for All Urban Consumers (CPI-U) is used to measure inflation increases.

The 2018 FPO increase for FLTCIP 2.0 enrollees is 3.02%.

For FLTCIP 1.0 and Alternative Insurance Plan (AIP) enrollees, the Consumer Price Index for Medical Care (CPI-M) is used to measure inflation increases.

The 2018 FPO increase this year for FLTCIP 1.0 and AIP enrollees is 6.79%.

Note: The additional premium for the increase, if you choose to accept it, is calculated using current premium rates and your age as of January 1, 2018.


https://www.ltcfeds.com/help/faq/201..._highlight=fpo

How do I know how much that is?

You don't know. They don't know. It will depend upon what the rates are at that time for that specific age.
The rates change every 7 years with the FLTCIP.

If you can health-qualify for an individual policy, you'll probably be better off buying a policy on your own rather than buying the FLTCIP.

(unless you're in the military. The FLTCIP has no war exclusion).
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Old 10-15-2017, 10:07 PM
 
Location: minnesota
6,338 posts, read 2,117,155 times
Reputation: 2168
Quote:
Originally Posted by LTCShop View Post
You don't know. They don't know. It will depend upon what the rates are at that time for that specific age.
The rates change every 7 years with the FLTCIP.

If you can health-qualify for an individual policy, you'll probably be better off buying a policy on your own rather than buying the FLTCIP.

(unless you're in the military. The FLTCIP has no war exclusion).
Is it like I'm applying for the insurance at that age? I put in different ages and the fpo was twice (100 vs 200) between 49 and 59. My head hurts. I'm starting to wonder if it's even worth it. I dropped the hubby to 200 and a 5 year benefit period. The premiums were FPO $91 ACI 4 $256 ACI 5 $353. I'm really not prepared to pay that much per month right now. I'll have to search the web.
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