1. What kind of physical/medical review or exam is done prior to underwriting this long term care insurance policy?  Is the preferred health discount determined by medical record review, exam or questionnaire?
2. Do they pay actual expense up to the daily limit?   If so, and If you had home care or assisted living and it cost less than the daily limit, (say 50% for example) would you be covered for 6 years on a 3 year policy or 10 years on a 5 year policy?   Or is the benefit period of 1095 days (3 years) definite?
3. Elimination period -  Do they count calendar days or service days?  For instance would having a caregiver in the home for 2 days per week count for 2 days or for a week?
4. On the 3 year option comparison sheet you sent – what does the figures $164 and 250 under Pool of Money refer to?
5. If we both have the 150 per day/ 3 year policy would the total amount available be $328,500?  Wouldn’t the Maximum daily benefit amount be $300?
6. Under the Additional Coverage Level column to what does ALF refer?
7. How much more per year would each of these options cost?
   1. Shared policy (6yrs)
   2. 10 Year Return of premium
   3. 10 Year Survivorship Benefit
8. Is the quoted price good until next birthday?
9. Are you familiar with opting for a Life Insurance Policy with accelerated death benefits to handle LTC costs?  Do you know cost information, etc?

1) Medical questions in the long term care insurance application and they will get your actual medical records from your doctor (s).
2) Yes, they pay actual expenses up to daily max.  Yes, if you use 50%/day then your policy would last 6yrs.  (most all carriers are like this)

3) Service days with some companies.  An optional rider can be added to waive the Elimination Period for home care.

4) That’s the beginning value of the long term care insurance policy.  150/day times 365 days in a year times 3 yrs equals 164,250

5) You each have separate policies valued at 150/day and 164,250 life times max.  In order to get 300/day both would have to be on claim at the same time but you can’t directly use each other’s benefits.

6) Assisted Living Facility, some older policies and some current group long term care insurance plans give a percentage of the daily benefits for assisted care such as 50-75%.  All the plans we represent pay100% of your daily benefit amount for all levels of care.

7) a. 150/day 6yrs shared: 3686.31/yr—not a huge fan of this because I think they charge too much for the rider.  I’d prefer to have 5yrs each for 3978/yr than sharing 6yrs and simply 3yrs each for 3k/yr and that will be enough coverage 9 out of 10 times.  Just my two cents though. 
b. 150/day 3yrs each return premium after 10 yrs: $4255.13/yr
c. 150/day 3yrs each 10-yr survivorship $3336.75/yr

Yes, in fact they will give 30 days after b-day to “save age”.  However, these companies increase their rate structure ever so often (every 12 months or so)

9) Yes, not a huge fan.  I’d relate it to the old TV/VCR combo devices from 20 yrs ago.  You had two average products built into one.  I think having a separate annuity or life insurance (probably annuity) with a completely different company than your LTC is the best bet.  You’ll get more benefits for less money typically.  We have info on those as well.

A Second Q&A

I have put a lot of time into this. My Dad had Alzheimer’s and went into a nursing home when he was 82, he passed away within 3 years. Mom was in independent care for about 5 years, then in assisted care for about 3 years, nursing home for 2 years before she passed away. Dad was about 85, and Mom almost 97 when they died.

The annual fees were confusing, and I need to know how much of the premium would be tax deductible
(Federal). Texas has no taxes. Since Mom was about 87 before she needed even independent care, it seems early for me to be purchasing this. I know we don’t know what will happen from day to day, but I feel like I could wait until 72 to buy, perhaps. The premiums go up based on age anyway??
I am extremely healthy now. No health problems so far.

So, my questions would be:
Why buy now?
What are the premiums for 5-year (best price) and how are they paid? monthly or annually
Tax deduction?

You will want to check with your CPA on the tax deduct, but my clients who itemize on their taxes have said they were able to write off most all the premiums. It is better to buy now for several reasons:

1) You have a better shot at the preferred discounts now vs. when you are older
2) Every 18 months these companies raise their prices on their products and in 5 years you will of gone through about 20% higher product cost
3) You will be five years older and there is an increased cost for every year you age
4) You will save money. Yes, even though you will pay for it for more years you will pay much less because of the above reasons.