Can my Ltc benefits get exhausted?

by Guest » Mon Jun 22, 2009 12:29 pm
Guest

I've been suggested to go for an Ltc policy that will cover me for 3 years.

I'm 56 and not too sure whether the benefits would get exhausted before

maturity.

Total Comments: 23

Posted: Thu Jun 25, 2009 07:03 am Post Subject:

Hi Sunshineva,

I used as an example would be exhausted after 6 years of use, whether the spouses each used 3 years, or one spouse used 4 and the other used 2.



So, it is normally flexible, i.e. depending upon the needs the spouses can divide the benefit years amongst themselves. Wouldn't the policy document have any specifying clause about the distribution of benefits?

Does the premium rate double with the inclusion of spousal benefit?

Posted: Thu Jun 25, 2009 07:08 am Post Subject:

Hi JTInsure,

Is increasing the policy term the only option to ensure that you wouldn't outlive the policy benefits?

Apart from the 3 years and 5 yrs plans what are the other terms available with the LTC?

Does the premium rate depend upon the policy term alone or it'd also get affected by the age of the applicant?

Posted: Thu Jun 25, 2009 12:29 pm Post Subject:

Hi JTinsure..

Are there any other benefits with 5 year plans or lifetime plans than that their daily benefits won't get exhausted so early?

Also, would you care to tell me about the features of such inflation riders?

Roddick

Posted: Thu Jun 25, 2009 12:42 pm Post Subject:

Hi Sunshineva..

Whatever claims are made would of course have to be valid, but the total benefit of the shared-benefit policy I used as an example would be exhausted after 6 years of use, whether the spouses each used 3 years, or one spouse used 4 and the other used 2.



Suppose if both spouses have a valid reason to claim...would it then be decided by medical documents as to who'd need to use it for more time?

Or is it up to their wish to decide upon the proportion of time?

I'm interested to know whether the usage has to be supported with medical documents or not.

Steven

Posted: Thu Jun 25, 2009 01:27 pm Post Subject: shared benefit LTC

Hi Steven,
One would be hard-pressed to find an LTC policy that wouldn't required a certification of eligibility and a written plan of care prescribed by a licensed health care practitioner in order to claim the benefit. As far as which spouse is needing the benefit for "more time," I can't answer the questions specifically without seeing a specific policy. But, the nature of a shared policy is that one spouse theoretically could use the entire benefit. Hope I am getting to the answer of your question.

Posted: Fri Jun 26, 2009 07:51 pm Post Subject:

Hi Steven and Kelvin:
The cost of premiums are going to vary. Some insurers offer the shared benefit as a rider, some offer it as a joint coverage policy with shared benefit as a built-in feature. I can't get specific with a price because the premiums would also depend on the age, health history, and other criteria specific to the applicant. As for the medical documention issue in deciding which spouse uses what term of benefit -- if both spouses qualify for a claim, the insured can decide which spouse to claim the benefit for.

Posted: Fri Jun 26, 2009 08:34 pm Post Subject:

But, the nature of a shared policy is that one spouse theoretically could use the entire benefit



That's not necessarily true. It can be done as a third pot of money.

Ex. Jason and Judy have a shared policy. Each has a 5 year benefit. With some companies, if Jason uses 6 years, Judy can only use 4 years. However, with some companies, the shared part is a separate pot of money. With a policy like this, they would both have a 5 year benefit, but there is an extra pot with 5 years of benefit. The total benefit would be 15 years, but neither one could use more than 10 years.

Posted: Fri Jun 26, 2009 08:35 pm Post Subject:

-- if both spouses qualify for a claim, the insured can decide which spouse to claim the benefit for.



They would both claim the benefit.

Posted: Fri Jun 26, 2009 11:17 pm Post Subject:

The shared policies sometimes have built-in premium waivers or offer them on a rider, which is another attractive feature of the shared policy.

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