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May 08, 2006


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Along with that, quit smoking now if you can. Because later on, the premium cost for life-long smokers becomes prohibitive and smokers will not be able to get LTC coverage. I speak from experience on this one. I got one parent with coverage and one without.

This is a great post for some basic information about LTC insurance. I wanted to bring up several points to add to this discussion. LTC insurance is meant for middle income individuals not for the wealthy or lower income people. That being said if you have time on your side and/or have a decent discretionary income then consider building savings to pay for your future care. The money you are saving for retirement might not be all used so it can be applied toward paying for an assisted living home or nurse care at your own home. As baby boomers reach retirement LTC insurance becomes more important.

Individual LTCi is medically underwritten so anything in your history can impact your issue class/premium.

LTCi is used by those who get the true experts advising them: designing ltci using a third-party owner with unlimited benefits, full refund of premium regardless of claims paid plus a 10-pay premium option is the choice among the business executives and owners I have talked with. Successful people know how to not only preserve wealth but max all the leverage available to them. Often their net worth is well over ten million dollars.

Since about 99% of people say the reason they purchase insurance is to get a claim paid, a buyer needs to go over a financial analysis of the companies offering the policy before they look at policies - what good is a policy if you can't get the claim paid. Using just the rating agencies without knowing whether a particular book of business is profitable and the margins the company earns is asking for disappointment.

Further, must read the actual policy especialy eligibility for claims and the exclusions: only one carrier who issues individual ltci does not exclude war/act of war - terrorism - so learn how to do your own due diligence - most experts either do not or cannot read financial statements...

Have a great day,

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