Two ideas prevail when developing a LTC Reinbursment policy.
1: Short - Fat: A short elimination period (30 or 90 days) of $200 to $400 a day benefit with a two, three or four year multiplier.
Example $200 x 1095 day = $219,000 first year policy value, 90 day facility 0 day home care, 5% compound inflation.
Annual Premium 50 year old couple $2,708
(United of Omaha- Std)
Advantage: Client controls the cash flow. Depending upon need (cost and length of care) sends all or part of the covered benefits.
2. Long-Thin: less Daily benefit x 5 year to eight year multiplier with a long elimination period (180 or 365).
Example: $100 x 2,920 = $292,000 first year value. 365 day elimination period , 5% compound.
Annual Premium for 50 year old couple $2,356
(United of Omaha- Std)
Advantage: Premiums savings because client self insures for the short term. Only for the catastrophic -LONG TERM- does he have access to the insurance benefit.
Note: Short-Fat design with access to more money earlier is best: The savings gained for a LONG waiting period does not offset the exposure to the early cost of care.
Long-Term Care Insurance can be complicated with many decisions required in designing a comprehensive policy.
Insureds need to take the time to understand the features and definitions that distinguish each companies coverage.
"Long-term care insurance can allow loved ones to care ABOUT YOU …instead of having to care FOR YOU."
Insureds need to take the time to understand the features and definitions that distinguish each companies coverage.
"Long-term care insurance can allow loved ones to care ABOUT YOU …instead of having to care FOR YOU."
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