Is there a time you didn't buy insurance and it came back to bite you?

[LivingAlmostLarge]

The problem is getting to pay for coverage. The devil is in the details. How do they qualify what they actually reimburse for? That's the biggest problem. Do you need a dr note? Do you need x, y, z? My mom said that's why her and my dad didn't buy it.

[disneysteve]

The problem is getting to pay for coverage. The devil is in the details. How do they qualify what they actually reimburse for? That's the biggest problem. Do you need a dr note? Do you need x, y, z? My mom said that's why her and my dad didn't buy it.

Every month I submit the home care invoice to the LTC company. I can do it on their website so it’s very easy. Nothing needed from a doctor. You just need to be able to prove that you’re receiving care which is easy enough.

[QuarterMillionMan]

I was going to post this in the "Insurance landscape may be changing" thread but I see it got locked so this thread will suffice. My Genworth LTC will be going from $1000/annual premium to $3000/annual premium. So instead I will take the settlement of $10,000 cash now and $5000 to be used in the future for LTC coverage. That $15,000 is the total that I've paid in premiums for the past 15 years. If only Genworth would rebate the entire $15,000 in cash but $10,000 cash now and $5000 to be used in the future for LTC coverage is better than nothing.

Mutual of Omaha approved my new LTC by phone at $2600/annual premium but I haven't received the official paperwork yet. Initially they quoted $2200/annual premium but after they obtained my medical records something got flagged where $400 more needed to be added to my annual premium which is fine. The coverage will be $10,000 a month with a max lifetime benefit of $360,000 or 3 years.

[disneysteve]

I was going to post this in the "Insurance landscape may be changing" thread but I see it got locked so this thread will suffice. My Genworth LTC will be going from $1000/annual premium to $3000/annual premium. So instead I will take the settlement of $10,000 cash now and $5000 to be used in the future for LTC coverage.

So if you decide to buy a policy from them again in the future, they'll give you a $5,000 credit? Make sure you hang onto the documentation of that in case you ever want to use it because I can't imagine they'll keep track.

[QuarterMillionMan]

Actually the $5000 with Genworth is the benefit they will pay out if I need caregiver services or nursing home services. It is not a credit towards a premium.

[QuarterMillionMan]

I'll be selecting option 2 which is $10,000 cash payment, daily benefit $164, 90 day elimination nursing home, 0 day elimination home care, $5000 max benefit. I have until 8/14/24 to email Genworth my selection.

Just to the left side you can see option 1, no cash payment but a higher lifetime benefit of $22,00. (edit to add should be $22,500).

Would you take option 1 or option 2?

[disneysteve]

Actually the $5000 with Genworth is the benefit they will pay out if I need caregiver services or nursing home services. It is not a credit towards a premium.

Oh. That's better. Definitely hold onto that paperwork for the future when you find yourself in need of care.

[disneysteve]

I'll be selecting option 2 which is $10,000 cash payment, daily benefit $164, 90 day elimination nursing home, 0 day elimination home care, $5000 max benefit. I have until 8/14/24 to email Genworth my selection.

Just to the left side you can see option 1, no cash payment but a higher lifetime benefit of $22,00. (edit to add should be $22,500).

Would you take option 1 or option 2?

I'd take the 10K cash. Option 1 gives you an extra 17K at some distant point in the future, but you can invest the 10K now and probably have a lot more than that by the time you need it. You can easily double that a couple of times between now and when you're an infirm senior citizen.

I'm impressed that there's no elimination period for home care. That's a nice feature, though a 90-day elimination for inpatient care is rough. You'll have to pay the first 90 days which will be tens of thousands of dollars.

My mom's policy had a 90-day elimination for home care but at least that wasn't terribly costly. As it turned out, we could have sped up the clock but I didn't discover that until it was too late. Had she gotten care at least 3 days per week, she would have gotten credit for a full week. She only had care 2 days a week so it took a while to meet the 90 days.

[QuarterMillionMan]

Wait 3 days a week of in home care equates to 7 days?

[disneysteve]

Wait 3 days a week of in home care equates to 7 days?

Yes. On her policy if she had gotten care for at least 3 days per week she would have gotten credit for 7 toward the elimination period.

[QuarterMillionMan]

That's a good way like you said to speed up the 90 day elimination period to less than half like maybe 40 days elimination period.

[QuarterMillionMan]

My new LTC policy premium & benefits (200% increase)

[QuarterMillionMan]

Dave Ramsey on LTC insurance vs self-insure for LTC.
Do I Really Need Long-Term Care Insurance? (youtube.com)

[Like2Plan]

QMM,
Do you have any guarantees that the premium will not increase in the future?

[QuarterMillionMan]

L2P, I wish that the premium would not increase in the future. In fact, it's almost certain that the rate will increase with age. This was the largest increase at 200%, from $1000 annual premium to $3000 annual premium if I stayed with Genworth. Mutual of Omaha is a little better at $2694 a year for now.