SAMPLE LTC POLICY COMPARISON FROM LTC ADVISOR

LTC ADVISOR SAMPLE POLICY COMPARISON

Selected from 121 policies, 110 features

(Note: you can select any or all policies and any or all features to compare.
Here we chose 4 of the 121 policies and 74 of the 110 features.)

ABC Life Co

Best Care 300

Reliable Life

Preferred 200

Perpetual Life

P7988

XYZ Insur.

Super Select

Issue Ages

40-85

18-

30-84

50-84

Premium Classes

Standard

Preferred, Standard

Standard, Rated

Select, Standard

Tax Qualified

No

Yes

Yes

No

Rate Guarantee

No

5 years

No

3 years

Spousal Discount

15%

10%

25%

10%

Discount for unmarried couples

No

No

Yes

No

Nursing Home Daily Benefit Range

$50-$200

$40-$250

$50-$300

$60-$200

Indemnity or cost reimbursement

Indemnity

Reimburse

Reimburse

Reimburse

Benefit period (yrs)

2,3,5,L

1,2,3,4,L

3,6,L

3,5,L

Elimination periods, nursing home (days)

20,60,90,180

0,20,100

30,60,90

0,30,90

Accumulation periods

No

3X elim per

730 days

Care period

One-time elimination

No

Yes

Yes

No

Premium waiver wait

90 days

12 days

0

90 days

Wait begins with care or benefits

Care

Care

Benefits

Care

Joint premium waiver

Yes

No

No

No

Bed reservation (days)

21

14

30

21

Surviving spouse paid up

Rider

Yes

No

No

Years held for paid up

10

7

N/A

N/A

Spousal benefit transfer

No

No

Rider

No

Alternate plan of care

No

Yes

Yes

Yes

Must be on claim for APC

NA

No

Yes

No

Percent of NH benefit for Assisted living Facility

Indemnity

80% of HHC DB

50%

100%

Home health care

Rider

Policy

Separate Policy

Policy

Homemaker covered

Yes

No

Yes

Yes

Informal care

No

Rider

No

Yes

Adult day care % of HHC

100%

50%

80%

100%

Respite care days/yr

15 at 50%

0

15 at 100%

21 at 100%

Hospice care % of HHC

100%

50%

0

60%

Medical Equipment

No

Under APC

50xHHCDB

Under APC

Medications

Up to NHDB

No

$60/month

No

Caregiver training

3x DB

$300 lifetime

No

5x DB

Home care % of NH

50,100%

50,80%

chosen separately

0,50,100%

Copayment

20% for HHC

None

None

20% in ALF

Home care $ benefit

% of NH

% of NH

$40-$200

% of NH

Home care indemnity/Reimbursement

Indemnity

Reimburse

Reimburse

Indemnity

Home/Facility benefit pooled

Yes

Yes

No

No

Home care benefit periods

Same as NH

Same as NH

1,2,3

2,3

Home care elim periods

0,20 days

Same as NH

20,60 days

0,30 days

Home care premium waiver

No

Yes

Yes

No

Wait for prem waiver

NA

12

0

NA

Wait begins with care/benefits

NA

Care

Benefits

NA

Medical necessity covered

NH & HHC

No

No

HHC

ADL's for nursing home

2/5

3/6

2/6

2/5

ADL's for home care

1/5

2/6

2/6

2/5

Is mobility an ADL

No

Yes

No

Yes

Need for supervision included in definition of ADL limitation

No

No

Yes

No

Non-organic mental illness covered

No

No

Yes

No

Waiting period for pre-existing conditions

3 mos

0

6 mos

0

Lookback period

3 mos

0

6 mos

0

Simple inflation protection

5%

5%

No

5%

Compound inflation protection

5%

5%

5%

5%

Future purchase option

No

No

No

Can raise DB 15% every 3 yrs

Care Management

Optional, chosen by insurer

None

Required, choose from insurer list

Optional, toll-free # advises on providers

Restoration of benefit

Rider

No

Yes

No

Return of premium on lapse

Yes

No

No

No

Percent of premium returned

20-100%

NA

NA

NA

Other non-forfeiture

No

Benefit Acct

Benefit Acct

Reduced Paid-up

Contingent non-forfeiture

No

Yes

Yes

No

Pays "Reasonable/Customary" vs actual charges

No

No

Yes

No

Care outside U.S. covered

Canada

Canada

Territories

Possessions

Paid-up options

5,10,20yr

None

1 payment

None

Max $ benefit, 4yr policy

$146,000

$142,350

$164,250

$109,500

Premium for $100 DB, 4 yrs, 100 day elim, $50 HHC, no inflation

 

Age 60

$710

$525

$750

$400

Age 65

$1090

$890

$1188

$973

Age 70

$1560

$1310

$1895

$1422

Age 75

$2122

$1947

$2288

$1899

Premium: $100DB, lifetime, 20day elim, $100HHC, compound inflation

 

Age 60

$2662

$2060

$2917

$1860

Age 65

$3413

$2820

$3397

$2530

Age 70

$4627

$4130

$3932

$3650

Age 75

$6343

$6450

$5464

$5900

Premium Increase since 1/1/95

42%

No

No

28%

Standard & Poors rating

AAA

A

AA

A

Moody rating

A

Aa

Baa

Ba

State Differences

Not available as of 6/30/02 in AL AK CA CO MA ME MD MI NH NJ NY RI VT WA WI. Simple infl protect N/A in AZ OH IN.

Available as of 6/30/02 in FL IL IN KY MO MT ND NE OH OK PA SC SD TN TX VA WY. Non-forfeiture offered in FL. No 1 year benefit period in FL. No simple inflation in IN.

As of 6/30/02, HHC rider available in DC DE FL GA ID IL IA KY MO MT NE NV OH SD WY.

Available as of 7/7/02 in CA GA IA KS MA MD MN MT NC ND PA TN VA WA WI. Rates differ in MT ND PA TN WI. Return of premium N/A in GA MT ND PA WA. 2/7 ADLs in CA.

Comments

Payment for care by family member or for home modifications may be approved by Care Coordinator. Premium A is with 100% HHC since no 50% HHC option. Waiver of premium applies to ALF.

Spousal discount applies to older spouse only. Care by family or friends paid at 80% of homemaker rate in area. Bed reservation applies to ALF.

None

Max HHC ben period is 3 yrs; premium A is for 4 yr NH/3 yr HHC and premium B is for lifetime NH/3 yr HHC. Waiver of premium applies after 90 days in ALF.


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