1. Monday, May 14, 2012 - 8:31 AM
I purchased a LTC policy at age 55 and regard it as an essential part of financial planning. My policy has an inflation rider and the daily coverage increases a minimum of 5% annually. I designed the policy to pay for half the costs of care since I can afford the other half without dissolving my savings.
Pre-existing health conditions can cause higher premiums for a policy or even being turned-down. One must be very selective in choosing the insurance company that markets LTC policies. Some no longer offer them or have started raising the premiums to prohibitive levels. For federal government employees and retirees and military retirees there are plans also offered. Some policies have premiums that are even tax deductable.
The first 90 days of coverage is a point of debate. Medicare, under some very strict guidelines, may pay for some of the care, but it's highly unlikely. That's why a policy will be much cheaper with the 90 day elimination period. You have to be able to afford the first 90 days of the long-term care. In the end, it's a personal decision. My policy runs $1,842 annually for a lifetime benefit with the 90 day elimination period. If you had to pay for the LTC yourself after the first 90 days, that would last about a week for care in a facility.
Pre-existing health conditions can cause higher premiums for a policy or even being turned-down. One must be very selective in choosing the insurance company that markets LTC policies. Some no longer offer them or have started raising the premiums to prohibitive levels. For federal government employees and retirees and military retirees there are plans also offered. Some policies have premiums that are even tax deductable.
The first 90 days of coverage is a point of debate. Medicare, under some very strict guidelines, may pay for some of the care, but it's highly unlikely. That's why a policy will be much cheaper with the 90 day elimination period. You have to be able to afford the first 90 days of the long-term care. In the end, it's a personal decision. My policy runs $1,842 annually for a lifetime benefit with the 90 day elimination period. If you had to pay for the LTC yourself after the first 90 days, that would last about a week for care in a facility.
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