Client’s long term care insurance questions
1. What kind of physical/medical review or exam is done prior to underwriting this long term care insurance policy? Is the preferred health discount determined by medical record review, exam or questionnaire?
2. Do they pay actual expense up to the daily limit? If so, and If you had home care or assisted living and it cost less than the daily limit, (say 50% for example) would you be covered for 6 years on a 3 year policy or 10 years on a 5 year policy? Or is the benefit period of 1095 days (3 years) definite?
3. Elimination period – Do they count calendar days or service days? For instance would having a caregiver in the home for 2 days per week count for 2 days or for a week?
4. On the 3 year option comparison sheet you sent – what does the figures $164 and 250 under Pool of Money refer to?
5. If we both have the 150 per day/ 3 year policy would the total amount available be $328,500? Wouldn’t the Maximum daily benefit amount be $300?
6. Under the Additional Coverage Level column to what does ALF refer?
7. How much more per year would each of these options cost?
- 10 Year Return of premium
- 10 Year Survivorship Benefit
8. Is the quoted price good until next birthday?
8. Are you familiar with opting for a Life Insurance Policy with accelerated death benefits to handle LTC costs? Do you know cost information, etc?
LTC Tree’s long term care insurance answers
1) Medical questions in the long term care insurance application and they will get your actual medical records from your doctor (s).
2) Yes, they pay actual expenses up to daily max. Yes, if you use 50%/day then your policy would last 6yrs. (most all carriers are like this)
3) Service days with some companies. An optional rider can be added to waive the Elimination Period for home care.
4) That’s the beginning value of the long-term care insurance policy. 150/day times 365 days in a year times 3 yrs equals 164,250
5) You each have separate policies valued at 150/day and 164,250 life times max. In order to get 300/day both would have to be on claim at the same time but you can’t directly use each other’s benefits.
6) Assisted Living Facility, some older policies, and some current group long-term care insurance plans give a percentage of the daily benefits for assisted care such as 50-75%. All the plans we represent pay 100% of your daily benefit amount for all levels of care.
7) a. 150/day 6yrs shared: 3686.31/year. I am not a huge fan of this because I think they charge too much for the rider. I’d prefer to have 5 years each for 3978/yr than sharing 6 years and simply 3 years each for 3k/yr and that will be enough coverage 9 out of 10 times. Just my two cents though. :)
b. 150/day 3yrs each return premium after 10 yrs: $4255.13/yr
c. 150/day 3yrs each 10-yr survivorship $3336.75/yr
8) Yes, in fact, they will give 30 days after b-day to “save age”. However, these companies increase their rate structure ever so often (every 12 months or so)
9) Yes, not a huge fan. I’d relate it to the old TV/VCR combo devices from 20 years ago. You had two average products built into one. I think having a separate annuity or life insurance (probably an annuity) with a completely different company than your LTC is the best bet. You’ll get more benefits for less money typically. We have info on those as well.
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