Funding Long Term Care

[@Paul-GrnHil]

Another great lesson. I have been reluctant to consider L/T care insurance. I read about numerous situations 10 - 12 years ago when the product was new with highly inflating premiums that resulted in a person dropping coverage due to excessive premiums just when they needed the coverage most. This hybrid option is worthy of consideration.

[@tedvananne1183]

Hans, THANK YOU for all the great videos and information your provide. Wonderful style, great pace & love your charts in all your videos.

[@generatorjohn4537]

Hans, My wife and I bought a 8 year "shared" long term care policy that was started just a few weeks before she turn 50 years old. I turned 50 years old a month and a half later. It started out at $480K in year 2006. This policy has a 5% inflation annual adjustment. I believe the premium at the time was approximately $3100. We are now 65 years old and it is almost at $1 million, shared 8 years. We have seen the premiums rise since we have had it. Didn't increase from it's original premium for several years in the beginning. These past three, four years the premium has been increasing more steadily. Want to point out that even though the premiums have essentially double since we first bought it, the cash value amount has essentially doubled too. One thing this LTC company offered as an option to these premium increases is to reduce the years shared from 8 to 6 years and keep the premiums frozen for the next three years. The problem with this is they can't guarantee the premiums won't increase after the third year. Also by choosing this reduced premium option, the policy owner just reduced his/her shared policy years by 25%!!! We chose to pay the increase and keep the policy as we initially bought it for 8 years shared. We would like to know if the LTC policy in your video is shared or an individual policy? Also is that $9800 premium per year for life? Thanks very much for your great videos. Your videos are very helpful for retirees or anyone requiring financial advice regardless of age.

[@CardinalAdvisors]

The $9800/yr is for life and premiums could go up. The $20,000 is for 10 years and the premiums can’t go up. It is shared care so either one can use it. The client and wife have a very profitable C corp so they will be able to write the premium off through the company as an accident and health insurance expense. Thanks

[@scottprice4813]

I think a way you communicate to a prospect that is difficult to convince about long term care is the way their estate is protected by the tax free nature of these payments . If you look at the realities of the exploding federal deficits the idea that taxes aren’t going up at some point is ludicrous .