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Participant ○○○

Pick up the group Long Term Care Policy?

 

I continue to help my friend as she transitions and step by step she is moving forward. She now needs to decide if she wants to pick up the group Long Term Care policy from her past employer.

She is 62 years old. After being laid off from her job, she has the option to continue with the group contract for Long Term Care insurance with Prudential. The cost is $45.18 per quarter ($15.06 per month).

This coverage information was received from Prudential:

Plan option: $75 nursing home care daily maximum and Home and community-based care daily maximum

Benefit waiting/Elimination period: 90 days

Inflation Protection Periodic

Non-forfeiture benefit Contingent

Premium refund at death benefit No

Lifetime Max Benefit $82,125

Original effective date 7/1/2007

So far the questions are:

What does periodic inflation protection mean?

What is a contingent "non-forfeiture benefit?"

Is this plan worth continuing?

Does she need more information from Prudential to make an informed decision?

Hootz

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Re: Pick up the group Long Term Care Policy?

This looks like a mini- or supplemental- LTC policy [low daily and max caps]. But not much to lose with $15.06/mo - peanuts as far as LTC premiums go.

Inflation protection means that every few years, she will be offered increases in daily and max caps for additional but more expensive premiums. She may accept or decline, but if she declines twice or more successively, that option will no longer be offered.

Also, the premiums can go up in future - that is governed by states and they can only go up for the whole group, not just for her.

YBB
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Participant ○○○

Re: Pick up the group Long Term Care Policy?


@yogibearbull wrote:

This looks like a mini- or supplemental- LTC policy [low daily and max caps]. But not much to lose with $15.06/mo - peanuts as far as LTC premiums go.

Inflation protection means that every few years, she will be offered increases in daily and max caps for additional but more expensive premiums. She may accept or decline, but if she declines twice or more successively, that option will no longer be offered.

Also, the premiums can go up in future - that is governed by states and they can only go up for the whole group, not just for her.


Yogi,

It was a freebee from her past employer.

With the low maximum daily and low cap, I agree that it looks (is) a mini LTC policy. And, I agree that for $15.06 per month, she can't go wrong. If (when) Prudential precipitously increases the premiums, she can always cancel the policy.

Thanks for your input.

Hootz

 

 

 

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