An article today on CNN Money hightlights the potential advantages of a couple buying shared LTC insurance rather than individual policies.  Here are some assumptions:

• Say an LTC policy costs $1,500 per year. If John and Jane Smith both buy such a policy, the total premium might be $2,100 a year, not $3,000. Costs vary, depending on such factors as length of the benefit period.
• Suppose each of the Smiths buys a policy that pays $170 a day if the insured goes into a nursing home. That'd be about $62,000 a year.
• They could each buy a policy with a three-year benefit period. Such a policy would pay up to $186,000 in nursing home bills.
• Or they could each buy a policy with a five-year benefit period. These policies would each pay up to $310,000 in nursing home bills.

The article goes on to suppose that instead of buying two individual long term care polcies, albeit at a discount, the Smith's decide to buy a single policy to cover both of them.  This is called a Shared Long Term Care Insurance policy.  We'll use new assumptions:

• Say John and Jane Smith each buy a three-year policy. They choose a shared-care plan.
• John goes into a nursing home. After three years, his benefits have been used up.
• He can still tap Jane's benefits.
• If he uses one year of her benefits, Jane would be left with an LTC policy that will pay up to two years of benefits.

Here is the article's final conclusion... murky as ever.  This is why you need professional advice!

There is no right choice for everyone. If you buy a shared-care plan and one spouse uses up most or all of the coverage, the other spouse may have to spend down assets to pay nursing home bills.

But if you buy two lifetime LTC policies and wind up needing little or no long-term care, you will have paid many thousands of dollars more than you could have paid.

We encourage you to contact us and allow us to further explain your options - they are complex and there is money on the line, so making informed decisions is always a good idea.