Hello,
I'm trying to consider whether I keep my LTC insurance that I currently have. When thinking about that, is it purely a matter of what I need to put into premiums vs what the expected pay out would be?
A few details about my situation:
1. I currently have the Federal government’s FLTCIP with their cheapest plan.
2. My monthly premium is $20.
3. The maximum benefit is capped at 100K.
4. I expect to be ~30 years out from needing LTC
5. I expect to have enough money to fully self-fund LTC when I actually need it, so I don't HAVE to have LTC insurance
6. If I invest the premium for 30 years, projecting annual interest rate of 7%, I would only get 25K.
7. Therefore the max payout to forgone income is 4:1, which seems nice to me.
I know very well that 100K won’t be much, but the decision is whether I keep the existing insurance or get rid of it. So I think I keep it and for the remainder of any LTC I would need, I will likely self-insure rather than get another plan.
Is the decision as simple as that? Is there anything else I need to consider?
Many Thanks!
I'm trying to consider whether I keep my LTC insurance that I currently have. When thinking about that, is it purely a matter of what I need to put into premiums vs what the expected pay out would be?
A few details about my situation:
1. I currently have the Federal government’s FLTCIP with their cheapest plan.
2. My monthly premium is $20.
3. The maximum benefit is capped at 100K.
4. I expect to be ~30 years out from needing LTC
5. I expect to have enough money to fully self-fund LTC when I actually need it, so I don't HAVE to have LTC insurance
6. If I invest the premium for 30 years, projecting annual interest rate of 7%, I would only get 25K.
7. Therefore the max payout to forgone income is 4:1, which seems nice to me.
I know very well that 100K won’t be much, but the decision is whether I keep the existing insurance or get rid of it. So I think I keep it and for the remainder of any LTC I would need, I will likely self-insure rather than get another plan.
Is the decision as simple as that? Is there anything else I need to consider?
Many Thanks!
Statistics: Posted by finance_learner — Wed Oct 30, 2024 11:51 pm — Replies 1 — Views 129