LTC insurance
We choose policies from Northwestern Mutual Life (NML). There were several things we liked about these policies
1. Because both spouses bought policies after 7 years of paying premiums if one spouse passes away the survivors policy is "paid up" with no more premiums due.
2. The daily benefit we choose does rise each year and the premium rises by the same percentage. In our case both rise by 5%. We can stop this increase at any time and the premium will also stop increasing. Yes, it will get very expensive but predictably so.
3. If we decide that we no longer can or wish to pay any more premiums the policy freezes and all the money we have paid in is available as a benefit.
The big financial risk is really for the healthy spouse. A single person may be ok with watching the assets get spent, but if one spouse is in LTC situation the other still needs to live.
Having watched how quickly money goes when someone requires long term care we feel this is a good investment.
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