Long Term Care Insurance Optional Riders Q&A

 The below are a few common questions we get from our clients from all corners of the country.

Client (From Naples, Florida):

1. Is the policy ever "paid up"? If we opted for the"10-pay," by how much does that raise the premiums? What do you think of this option?
2. What are the advantages and disadvantages of shared coverage? What's the additional cost? It looks like it's not available for three-year benefit period; is that right?
3. Does Genworth offer a monthly maximum instead of a daily maximum? What would be the advantages and disadvantages of a monthly maximum? What's the additional cost?
4. Could you explain the 10-year survivorship benefit? What's the additional cost?
5. Finally, what do you think about the 10-year return of premium or the graded return of premium?

1. The policy is only paid up if you choose the 10 pay option, which typically at least will double the premiums depending on your age at purchase.  I’m not a fan of it too much because you could of invested the difference and probably be better off...however I do have several clients who like the peace of mind that it's paid off.
2. Disadvantage of shared coverage is it adds about 15-20% to the cost.  Advantages are that statistically just 1 person will need care so if that's the then the person needing the care will have double the cushion when they need care.  3yr shared not available--it starts at 4yrs.
3. Yes, all carriers do offer monthly option.  Adds about 6-8% to the cost and the disadvantage is you'll have a tad less money in your pool because if you multiply 150 times 365 days in a year it will be a bit more than 4500 times 12 months in a year.  Advantages are if you have a day where you need 300/day for some reason you can go over your speed limit of 150/day and manage the money over the course of the month.
4. 10 yr survive--is a rider that adds 7% of so and if the policy in enforce for 10 years, any point after when one spouse passes the surviving spouse has full benefits and does not have to make payments anymore.
5. That's tough for me because I help invest people's money as well and that rider has a cost which will be pulling funds that otherwise would have been growing in their IRA etc.  That will have to be a personal decision on the return of premium option. 

 At LTC Tree we help our clients sift through the entire research process remotely without you having to sit through a sales presentation at your kitchen table.  Our clients have found that it is a much more efficient process that saves them time and money.  If you'd like to learn more about long term care insurance please fill in the form below.  Thanks for reading my blog....I really appreciate it.