Hello Bogleheads, Long-time lurker; first-time poster:
After several years of poor financial decision making, my 69 year old MIL has minimal assets (<$150,000) and lives primarily off a small pension, SS, and 1 property rental income. She recently gave me power-of-attorney and we are getting things stabilized, but are trying to cut all unnecessary expenses.
She has a LongTerm Care insurance plan through Thrivent (annual cost $1065) and an AIG/Corebridge annuity that is used to pay that premium. It has a surrender value of approximately $18,000 (the last statement I have is from 2022 and AIG/Corebridge has changed hands and I have yet to get logged into the various websites).
I have read the policy, but I'm having trouble deciding/understanding if the benefits outweigh the annual cost ($1065) or should she/we surrender the annuity and invest it somewhere stable? (I've consolidated her accounts at Fidelity, with an approximate 10% stock:90%bond/MM split)
Thank you for your thoughts!
Plan details below:
This plan has an annual premium of $765.
There is an additional premium of $300/yr that increases the above benefits by 5% per year (policy went into effect in 2000, so benefit is 2024-2000 = 24*5% = 120% + 100% = 220% of original value, shown in () below).
It has a
Daily Maximum Benefit of $150 ($330)
Maximum Benefit per Visit $150 ($330)
Weekly Maximum Benefit $1050 ($2310)
Bereavement Counseling Benefit Limit $750 ($1065)
Caregiver Training Benefit Limit $750 ($1065)
Equipment/Home Modification Benefit $7500 ($10,650)
After several years of poor financial decision making, my 69 year old MIL has minimal assets (<$150,000) and lives primarily off a small pension, SS, and 1 property rental income. She recently gave me power-of-attorney and we are getting things stabilized, but are trying to cut all unnecessary expenses.
She has a LongTerm Care insurance plan through Thrivent (annual cost $1065) and an AIG/Corebridge annuity that is used to pay that premium. It has a surrender value of approximately $18,000 (the last statement I have is from 2022 and AIG/Corebridge has changed hands and I have yet to get logged into the various websites).
I have read the policy, but I'm having trouble deciding/understanding if the benefits outweigh the annual cost ($1065) or should she/we surrender the annuity and invest it somewhere stable? (I've consolidated her accounts at Fidelity, with an approximate 10% stock:90%bond/MM split)
Thank you for your thoughts!
Plan details below:
This plan has an annual premium of $765.
There is an additional premium of $300/yr that increases the above benefits by 5% per year (policy went into effect in 2000, so benefit is 2024-2000 = 24*5% = 120% + 100% = 220% of original value, shown in () below).
It has a
Daily Maximum Benefit of $150 ($330)
Maximum Benefit per Visit $150 ($330)
Weekly Maximum Benefit $1050 ($2310)
Bereavement Counseling Benefit Limit $750 ($1065)
Caregiver Training Benefit Limit $750 ($1065)
Equipment/Home Modification Benefit $7500 ($10,650)
Statistics: Posted by doc1977 — Wed Jul 24, 2024 10:24 pm — Replies 1 — Views 175