I think a $50/day benefit is about as useful as a $3K life insurance benefit. Sure, it's money, but not even close to what is necessary.
Here's a scenario as to why I might recommend $50.
Client has $50K saved for LTC and is 70. He puts it into a Moneyguard policy which pays up to $2,474 per month or about $82 per day. By purchasing a small (and affordable) LTC policy for $50 he now has just about enough for HHC.
I have 1st hand experience with someone who had a stroke at 68. Only took about 2 years to run through both the equity in a condo and the balance in an IRA. $200K down the drain. A $50 a day benefit would have saved my mother $36K over two years. Not enough to really matter.
Just because someone thinks a spouse can handle things, that may not be the case. Can a 125 lb woman help her 220 lb. husband into and out of a shower when he can't walk? How about helping him wipe himself?
The reason for LTC is so that the spouse (or kid, etc) can supervise care, not provide it. I take care of my mother but fortunately we have someone that comes in 3 times a week. This help does not cost $50.
Hope that puts a bit of perspective on $50. benefit.
Rick
Well stated, Rick. I couldn't have said it better.
(except for the MG part... I don't like those combo products. But everything else you said is right on.)
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Here is what I found from today's surfing:
A++ rated LTCi carriers -
Berkshire Life (Actually Guardian... who is leaving this year)
Mass Mutual
New York Life
Northwestern Mutual
State Farm
A+ rated -
John Hancock
MetLife (yes, I know they recently bowed out)
Mutual of Omaha
Prudential
A rated -
American General
Genworth (formerly GE... and whose stock has been as low as $1 in the not too distant past... amazing they are rated this high)
TransAmerica
A- rated -
AFLAC --- but maybe not tomorrow!
Assurity (yes, they are out, too)
LifeSecure
Unum
B++ rated -
MedAmerica
Bankers Life (whose parent company, Conseco, (or should I say CNO Financial) has been through bankruptcy recently.
I note that MedAmerica keeps company with the lower rated Bankers and not with the big dogs. This is a major concern for me. As noted, LTC is a need that is expected to require long term financial viability. Other health insurance can be replaced annually or less... in most cases without much difficulty. Med Supps, for example, will often waive pre-ex if the client was previously covered on a carrier that left the market.
Retread,
Transamerica is rated A+, not "A", by AM Best.
Stock price is irrelevant.
The stock price is not based on the profitability or financial stability of an insurance company. Insurance companies do not sell shares of stock.
The stock price is the value of the holding company which owns SEVERAL insurance companies.
That is why the stock price does not reflect any particular insurance company.
Retread, please re-read the thread which got me into this forum:
Is Genworth LTCi Block At Risk?
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