What is the average amount of long-term care insurance?

[jeffersonmiles910]

My mom bought this long-term care insurance from some guy in New York and I don't really know how this works. The company's complete long term care [which I won't be linking to avoid being branded as a spammer )] in case you want details. Any one? The articles on bloomberg isn't that helpful to me

[lorraineb]

Did you read the information that came with the long term care insurance? That will spell out exactly what she bought.

[thesimplemoneyblog]

Averages aren't very useful when it comes to long-term care insurance. A lot of the discussion is how old someone is when they take out their policy, what their family history is for longevity, and what type (quality, location, etc.) of facility they would like to go to should something happen if they were to participate in home health, assisted living, nursing care, etc.. Plus, pricing of a facility can range dramatically from one region to the next. A $4,500 per month coverage policy in one area may be the cream of the crop, but in another area it may be the lower tier of service.

[Retired To Win]

There's Lots of Factors to Look at With LTC

My mom bought this long-term care insurance from some guy in New York and I don't really know how this works. The company's complete long term care [which I won't be linking to avoid being branded as a spammer )] in case you want details. Any one? The articles on bloomberg isn't that helpful to me

Well... average what?

Take a look at the policy and nail down (1) how long a stay the policy covers (lifetime? 10 years?... what?)... (2) what is the daily benefit amount that would be paid ($100?... $150?... what?)... (3) does the policy have an inflation rider that increases the benefit amount annually (and by what percent?)... (4) how long is the exclusion period before the benefits actually kick in? (60 facility days?... 90?... what?). And there's more, but you get the drift.

NOW, take a look at how much the premium is -- taking into account the age of your mother when she took out the policy. Is it a good deal? How will you know? (HINT: comparison shopping, anyone?)

Yes, it's very complicated. AND, it the policy isn't from a truly strong and big company your mother may end up SOL when it comes time to collect.

My advice (for the 2 cents it is worth) is to look right away at whether you can still cancel this policy and then evaluate whether that should be done.

Good luck with this...

Retired To Win

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