GUL with LTC

[mcouper]

You're right, you have no knowledge of these policies, or you would know that the benefits won't be similar. As far as making a big deal - your less than constructive comments to the first person replying made a big deal out of a simple request for info.

 

[Mr_Ed]

You're right, you have no knowledge of these policies, or you would know that the benefits won't be similar. As far as making a big deal - your less than constructive comments to the first person replying made a big deal out of a simple request for info.

I do understand the difference between indemnity and reimbursement. And, all other benefits being equal, indemnity is always better.



To say that an indemnity policy "ties you to the government" is a ludicrous statement.

 

[mcouper]

Run an illustration - benefits won't ever be equal for the same premium (I vs R).

 

[Mr_Ed]

Run an illustration - benefits won't ever be equal for the same premium (I vs R).

The advantage of NW's policy is that it pays the full daily benefit regardless of the actual cost of care.

However, you have stronger guarantees with this policy that pays on a reimbursement basis, so that's why I'm recommend it.


Don't say "indemnity is bad because it ties you to the government" or "indemnity isn't as good as reimbursement".

 

[ltcadviser]

wasn't my comment, but not totally ridiculous...in an indemnity model amounts in excess of the HIPAA max are treated as income for tax purposes....not so in a reimbursement model as expenses are incurred. Nationwide, Protective, AXA, etc. probably going to exceed at around $500k face amount.

Yes, totally ridiculous statement!!!
Would always want indemnity model.

Anyway, would rather have traditional LTC policy or alternatively a linked benefit LTC policy with ltc benefits under IRC 7702(b) than a life insurance policy with chronic illness rider under IRC 101(g).
Especially any life policy that uses discounted death benefit model to accelerate the LTC benefit.
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Run an illustration - benefits won't ever be equal for the same premium (I vs R).

Duh, that is because indemnity is more valuable as Scott stated to you.
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You're right, you have no knowledge of these policies, or you would know that the benefits won't be similar.

You are kidding, right?? You are a funny guy.

Well, I promise you Scott has FORGOTTEN more about long term care insurance policies and LTC pricing of reimbursement models vis a vis indemnity pricing than you will ever know.

Just saying.

 

[mcouper]

whoa dude - simmer down - conversation started (by someone) else re life w ltc rider, not standalone - but Im sure whomever appreciates your endorsement and backup.