In all modesty, I was very pleased with my reply to a client’s email asking me how long I felt a need for care would last, and whether LTC accrues a cash value. I realized this email might help others, so here it is:
LTC calculation tool
The link above takes you to a calculator that supposedly will tell you how much care you’ll need and what’ll cost.
My issue with all of these tools is that they are not calibrated for people like you, who will own LTC insurance. People who own LTC, I feel, might very well access care earlier and stay longer. I feel I’ve already observed evidence of this informally. It makes sense that this is true.
My other big issue, Dale, is that these tools don’t (can’t) take into account how great assisted living is, and how wide-scale it will be. This is because assisted living is still very new and many don’t really understand what it is. Currently, many don’t have the money to live in assisted living, since they don’t own LTC. I feel assisted living might be more popular than home health care for our generation.
Most experts say you should have at least a 5 year benefit period.
Personally, I own a Lifetime (endless, unlimited) benefit period. I personally like longer benefit periods because of the opinions I gave you above. That’s just me. Others disagree with me
I know that choosing what length benefit period you should have is the hardest part of your decision. My advice: buy the longest benefit period you can afford.
There is no equity in LTC. It is like homeowners insurance, which recently, many of us became extremely glad we own. If a tree doesn’t fall on your house, consider yourself lucky and sleep well. If it does, you’ll be glad you own the coverage. Owning the coverage will help you move on with your life and not cause hardship to those you love.
The odds of needing long-term care are much higher than the odds of claiming on your homeowners insurance. The cost of long-term care is higher than the average homeowners claim. That’s why LTC premiums are often higher than homeowners insurance.
I hope this email helps you, and is not too wordy.
Regards
Honey