Dont forget that the age of the person and the type of inflation protection is a requirement for the partnership ltc programs...
Simple Vs Compound Inflation ?
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My only concern about the 5% compound 2X is that that type of inflation benefit may not qualify for the LTC Partnership in a state in which she moves.
Some states are interpreting partnership qualifications as stating that a policy must be have an age-appropriate inflation benefit (and they can use their own rules, not the rules of the state where the policy was issued, to determine if the inflation benefit is "age appropriate".)
At least we know that 5% simple or 3% compound or CPI for a 65 year old is considered age-appropriate in every DRA LTC Partnership state. We're not sure about the 2X cap inflation benefits.
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Great point, EE.
Choosing an inflation benefit that is "age appropriate", for DRA Partnership purposes, is the #1 priority.
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I thought partnership programs needed to have the compound interest option. I think that is a HUGE perk, the partnership qualified ltci policy, and the money on the compound interest is worth that alone. If 60% need ltc, then many of those people will go on medicaid, and the partnership would help keep more assets.
EmptyEternity,
The amount of inflation protection varies by age of the applicant as well as by the state of jurisdiction.
For example, CT, IN, NY, and CA all require 5% compound (for nearly all ages).
Colorado requires 5% compound (or CPI-linked compound) for people who apply under the age of 61. In CO, a 3% compound won't qualify for the LTC Partnership program (for someone with a policy issue age of under 61).
But in many other states (including Ohio) 3% compound or 4% compound will qualify for the partnership program for applicants under age 61.
In most states, applicants over age 61 can qualify for the partnership program with "any type" of inflation protection, including 3% compound, 4% compound, 5% simple, CPI-linked, etc...
For example, in your state of Ohio, a 5% siimple automatic inflation benefit is all that is necessary in terms of inflation protection for a policy to qualify for the OH LTC Partnership.
I am starting to find Ltci fascinating, a goldmine waiting to explode...
It amazes me with all the tax implications for self employed and corporations how ltci isn't utilized more often. Add associations and the boomers on top of it, the prospecting field seems very open. Also, I think COI's with accountants and financial planners is the greatest way to go about getting clients, which is by referral. I would like to see more strategies as far as prospecting and appointment outline goes. Not to mention, Ltci by phone will increasingly come into view since everyone wants to stay at home or travel abroad.
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