MoO LTC Question
- Thread starter jmarkk1
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- long term care
only their single pay policy and their 10-year pay policy if the 10-year rate guarantee was included.
interesting article about that here:
How much and when can long-term care insurance premiums be increased? « LTCShop.com
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- #3
If client is paying 10 yr pay, wouldn't the premiums for this be really expensive? (let's say starting at age 60)
- 15,041
Define expensive.
The person has a paid up policy after 10 years, never has to pay again and doesn't have to worry about rate increases. There is a lot of value there.
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- #5
Compared to LTC Annuity single or flexible premium plans.
How much premium is paid in 10 yrs. vs. the LTC annuity route?
this is the kind of question I would expect from a consumer.
the premium paid will depend upon the benefit choices, the state of residence, the underwriting class, etc...
that's why each client's situation is unique.
Arthur Rudnick
Guru
- 1,652
If a 60 year old has a premium of $3,000 a year, and the average age of a LTC policyholder going on claim is 82, the policyholder will pay a total of $66,000.
(22 years x $3,000 = $66,000)
As a genersl rule of thumb, if a 10-pay is chosen, payments will be about $6,600 a year for 10 years, for the same $66,000. So, there are no actual monetary saving by paying for 10 years, but
as Mr_Ed stated, the benefit is that after 10 years, premiums stop and there is no possibility of a rate increase.
Less and less carriers are offering limited pay options.
(22 years x $3,000 = $66,000)
As a genersl rule of thumb, if a 10-pay is chosen, payments will be about $6,600 a year for 10 years, for the same $66,000. So, there are no actual monetary saving by paying for 10 years, but
as Mr_Ed stated, the benefit is that after 10 years, premiums stop and there is no possibility of a rate increase.
Less and less carriers are offering limited pay options.
