AARP Bulletin Article on Long Term Care Insurance (moving, friend, years)
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I have many of the same questions as you...but as a single woman in very good health, mid-50's I was finding rates close to yours as a couple! Maybe you're not getting much inflation protection?
Can I ask what company you're looking at?
As of last, fall Mass Mutual still had a combined male/female pricing chart but are about to change. So if at all interested, I'd move quickly to capture a potentially lower rate.
They are a top-ranked company, few rate increases but their underwriting is stringent.
The Federal program (if eligible) is also excellent for singles, for I don't believe they even offer couples rates. Plus they, too, may have a combined male - female rate chart. As an ex-Fed, I've looked at their calculator and rates were lower for this single female. It was seeing how much lower they were that got me again into thinking about LTCi a bit.
Single 55 yr old here w/ Fed LTC plan - here's a snapshot at my plan, premiums
Plan FLTCIP 2.0
Plan type (see Covered Services) Comprehensive Plan
Monthly premium $198.62
Biweekly premium 2 $91.67
Daily benefit amount (DBA) $232.62
Waiting period 90 calendar days
Inflation option ACI 3.05%
Benefit period 3 1,825 days
The daily benefit of $232.62 is not going to go very far if you require round-the-clock care as my mom did the last couple of years of her life. When considering LTC, one needs to take into limits, inflation, and probable rate increases, AND plan for the worst case scenario, regarding your health in your latter years.
How does the $200/day facility benefit compare to actual costs in your area? For assisted living, maybe OK, but skilled care?
These are excellent questions! I am going to look into the answers for this too. I relocated to South Carolina. It's a popular place for retirement and many people are caretaking for their spouse and/or parents. When I read the caretaking forum on this site it reminds me of how complex this whole situation can be. Emotionally and financially. I was also quite shocked at how expensive long term health costs can be per day.
The daily benefit of $232.62 is not going to go very far if you require round-the-clock care as my mom did the last couple of years of her life. When considering LTC, one needs to take into limits, inflation, and probable rate increases, AND plan for the worst case scenario, regarding your health in your latter years.
I never intended to cover 100% with the insurance. I plan on supplementing what the policy covers with my own funds. And the price one pays in one region of the country may be very different than another.
I never intended to cover 100% with the insurance. I plan on supplementing what the policy covers with my own funds. And the price one pays in one region of the country may be very different than another.
That's a good idea- to plan on supplementing. We live in a relatively low cost area and that amount might cover an 8 hour day for an in-home sitter. If you have more extensive needs, that amount won't go far, at all.
Even though you already know you couldn't find a comparable policy today, maybe just price one out to see how much more it would cost to realize what a great deal you seem to have ... even if you were theoretically the age you were at the time of original purchase.
Quote:
Originally Posted by EveryLady
I think that's a great idea. I am curious to see what's available out there after 10 years. If I were to reapply for a better deal today at 57 I wonder if I would be able to pass the medical exam.
Not matchable today. Plus, insurance companies have moved to sex-specific rate charts with single females priced about twice that of couples. One actual policy quote (tentative, no actual application) came in around $6000.
At the new single female rates, I realized that I would have in effect spent the protected amount (not the total inheritance, but the future value of the policy) by the time I reached the age where statistically I was most likely to need LTC. That probably would not be true for a couple, nor even a single male. Purchase age theoretically shouldn't matter given how the policies are supposed to be priced but I'm not sure?
Now that's interesting about the sex-specific charts. Single females priced twice that of couples? I can't imagine how any single female will pay $6000! And you're so right about thinking out the age where you would statically be most likely to use LTC. A good reason to look at my female family medical history.
But even there ... you need to weigh the impact of an earlier event. For me, I already have the 3-yr policy maximum amount available in a secure investments (at about 2 % today, no loss of principle) which will fall a bit short over time compared to a policy with a compound inflation protector of 3%. But then I gain flexibility and, of course, the investment if not needed for care.
I really enjoyed reading your financial plan here. I really need to learn more about smart investing!
For singles it's tough ... because we don't have the in-home support of a spouse ... we end up using care more frequently ... and so pay more.
I completely agree with how tough it is to be a single woman. I've spent many years being single and living paycheck to paycheck. What little I could manage to save aside from my primary living expenses suddenly had to go to fix the used car so I could get to work or pay for the doctor visit to get medicine. I never forget how hard that is. Which is probably why I always have plan B and C in case I lose everything and have to start over again.
I also wanted to add how much I enjoy your detailed posts. I enjoyed reading your one on the previous page of more of your thoughts about long term health care and financial planning.
That's a good idea- to plan on supplementing. We live in a relatively low cost area and that amount might cover an 8 hour day for an in-home sitter. If you have more extensive needs, that amount won't go far, at all.
I have many of the same questions as you...but as a single woman in very good health, mid-50's I was finding rates close to yours as a couple! Maybe you're not getting much inflation protection?
Can I ask what company you're looking at?
Yes! Let me get the actual policy page.
Underwriting Company: Continental Casualty Company
CNA Group Benefits Long-Term Care Program
CNA Financial Corporation
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