Long Term Care Insurance (LTCi) Purchase

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TravelforFun
Posts: 1941
Joined: Tue Dec 04, 2012 11:05 pm

Long Term Care Insurance (LTCi) Purchase

Post by TravelforFun » Sat Nov 30, 2019 10:45 pm

There are a lot of posts about LTCi and the pros and cons of purchasing a policy so I thought I would post a real life experience here.

In 2008 when I was 56 and my wife was 52, I purchased a COLA-adjusted policy from UNUM for both of us. The maximum monthly coverage for me and my wife were $4,000 and $6,000, respectively. The reason for the difference was because my employer was also providing me LTC coverage also through UNUM in the amount of $2,000 a month.

Our monthly premium for the policy in 2008 was $246 then it was increased to $254 (in 2012), $318 (2015), $381 (2018), and is currently $381.

A statement I received from UNUM at the beginning of this year (2019) shows our current benefits as follow:

- Me: $6,841 Monthly Benefit, $493K Lifetime Maximum
- Wife: $10,262 Monthly Benefit, $739K Lifetime Maximum.

Note that our original coverage of $4,000 (me) and $6,000 (wife) have increased to $6,841 and $10,262 due to the 5% COLA in the contract. The Lifetime Maxes have also increased as well and I believe, our current coverage has outpaced the actual cost of the local facility we intend to use. I will discuss with UNUM to see how the premium would be affected if I were to reduce the COLA to perhaps 3 or 4% going forward.

So far, we have paid $38,277 to UNUM but I feel good that we have the policy.

How about other folks on the forum? If you have LTCi, would you mind sharing your actual numbers?

TravelforFun
Last edited by TravelforFun on Mon Dec 02, 2019 10:53 am, edited 1 time in total.

Rwsawbones
Posts: 112
Joined: Fri Jan 20, 2017 11:21 pm

Re: Long Term Care Insurance (LTCi) Purchase

Post by Rwsawbones » Sun Dec 01, 2019 7:17 pm

For figures

DW and I have the following

Purchased age 49 Then $120 per day now $300 per day $6 increase per day per year (5% simple interest yearly premium then and now $1300 for both of us 90 day elimination 72 months total benefits each

Purchased age 56. Then $80 per day now $220 per day 5% compounded increase per day per year. Yearly premium was $2600 per year for both of us now now $5280 per year for both of us

I recommend you consider increasing the number of days of the elimination period rather than the daily benefit or inflation increase per cent

The cost of long term care in Massachusetts in 2016 was about $500 per day semiprivate room and $550 per day private. Boston area is one of the highest cost areas. I expect that 2020 will be about 15% higher

Topic Author
TravelforFun
Posts: 1941
Joined: Tue Dec 04, 2012 11:05 pm

Re: Long Term Care Insurance (LTCi) Purchase

Post by TravelforFun » Mon Dec 02, 2019 10:58 am

Rwsawbones wrote:
Sun Dec 01, 2019 7:17 pm
For figures

DW and I have the following

Purchased age 49 Then $120 per day now $300 per day $6 increase per day per year (5% simple interest yearly premium then and now $1300 for both of us 90 day elimination 72 months total benefits each

Purchased age 56. Then $80 per day now $220 per day 5% compounded increase per day per year. Yearly premium was $2600 per year for both of us now now $5280 per year for both of us

I recommend you consider increasing the number of days of the elimination period rather than the daily benefit or inflation increase per cent

The cost of long term care in Massachusetts in 2016 was about $500 per day semiprivate room and $550 per day private. Boston area is one of the highest cost areas. I expect that 2020 will be about 15% higher
I'll look into the elimination period. I think I have 90-day now but would consider extending it to 6-month or one-year in exchange for lowering the premium.

Still I'm happy with the policy I have.

TravelforFun

Topic Author
TravelforFun
Posts: 1941
Joined: Tue Dec 04, 2012 11:05 pm

Re: Long Term Care Insurance (LTCi) Purchase

Post by TravelforFun » Tue Dec 03, 2019 10:53 am

Bumping this up to see who else may have information on their LTC policies that they can share.

TravelforFun

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