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NW mutual is a great company...definitely is the top Mutual Benchmark company out there. I know this premium was a little more that you wanted to pay...but I think you realize why.
You are not going to be happy with the LTC premiums....they are not pretty...but they serve their purpose. Make sure the daily benefit will cover what the daily cost of care in your area is. We just put grandpa in a home...his policy pays $100/day....which is about $150 short! It's worth every penny though if you are wanting to protect your wealth.
The LTC is $152/month for a $7200 monthly which is $240/day with a three year benefit period. That is for me only.
What do you think of the "Automatic Additional Purchase Benefit" which is an additional 5% premium for an additional 5% benefit?
I thinks it's nice having an option to bump the coverage...and you are allowed to refuse it twice before it goes away.
IMO, I think you'd be better off buying a $300/day policy (the $60 is pretty close to 5 of those bumps)...a little more than you are paying now, but by the time you need it, even that might be a little short.
I've ran some quotes using inflation riders vs buying a larger daily benefit...and the larger daily benefit always cost less. This is one of the products that price should not dictate coverage.
Last edited by midwestlaxer; 12-16-2013 at 06:45 AM..
The LTC is $152/month for a $7200 monthly which is $240/day with a three year benefit period. That is for me only.
What do you think of the "Automatic Additional Purchase Benefit" which is an additional 5% premium for an additional 5% benefit?
I would not go with a policy that is less than 5 years. The look back period for Medicaid is 5 years or more in every state and it just doesn't make sense to do anything less. Also, your money accumulates so if you have $240/day to start but only use $100/day, that $140 extra can be added on when you need more--at least that is how our policies work. The additional purchase benefit or at least the inflation protection is a must. We had a choice and picked the 3% option, not that 5%. We actually have 3 policies each so we can work around the market conditions, etc. Generally your annual premiums for LTC will cover a month's worth of care. I think they are worth every penny we pay watching what happened to my Mom....
The six year is $217/month for the same benefit amount.
How does the benefit period work?
Basically if you use the full monthly amount from day one of your claim (after your waiting period--which should be 3 months) the plan pays out for 3 years, 5 years, whatever you pick. After that you are on your own to pay. If you have funds, great, if not, you have to spend down and go on Medicare. If you live in a Partnership state you can retain how ever much your plan paid out--it's not subject to the spend down, so in your case with the 3 year period, you could keep $259,200 in your accounts and still be eligible for Medicaid. We have unlimited on our plans because of family history. My mom would have been on a LTC claim for 20 years if she had a policy AND she would have been able to live in her home up until the last 2 years of her life, maybe even the last year. As it was she ended up moving in with my sister and then into a nursing home for 5 years. She had to give up her house and her car. Fortunately for her, her retirement accounts paid most of her stay so she was able to get a private room, but, she would have liked to have had passed that along to us, not the nursing home. She was out of money by the time she died though.
Does that benefit period have to be consecutive? is it cumulative?
It depends....I think, if I remember correctly that if it is for the same condition that it's cumulative...say a stroke where you need care for 3 years and then get better, but a year later you have residual conditions from that stroke, your policy starts up again with no waiting period. I can't remember exactly how it works if you have a second condition if there is a waiting period or not, but once you have spent your money, you are done so if you have a stroke and use up your 3 years but are better and then say 2 years later have Alzheimer's, you don't have coverage any more. I would think this is pretty rare though.
NW hybrid life on me $200K $3K premium
NW LTC on me $4K/month $700 premium
NW LTC on her $7200/month $1300 premium
Both of us came back in the best underwriting class.
We applied for an additional 100K term on me to total the $300K that I have now that came back $360/year for 20 years.
Also applied for her LTC at $10K/month but when all the numbers came in-and in coordination with the total picture-we dropped the term and reduced her LTC.The main thing about her LTC was her ability to sustain the premiums if I die first.
Thanks to everyone on this thread for their advice.
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