RH Jones: Beacon Journal article on shaving the costs of long-term-care insurance

July 12, 2006

To all:

Since we active/retired educators have no paid long-term care, the Akron Beacon Journal, 06/12/06, on the front of the "D" section ran a solution that can bring the price down for us. It is basically this:

1. Share. You share the benefit with your spouse.

2. Reduced benefits. Shorten the period to 5 or 6-years. Most people do not require care beyond 3-years.

3. Extend. By extending the waiting period for the coverage to kick-in, you will pay a smaller yearly premium

This is a condensing of the article. You may wish to read it in full in the Beacon.

RHJones, CORE

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Here is the article:

Beacon Journal, July 12, 2006

Ways to shave cost of long-term-care insurance

Long-term-care insurance policies aren't simple. Unless you have a history of debilitating disease, you have little idea whether you'll ever need such care or for how long.

Most people require long-term care after 65. Medicare pays for a short period of care, followed by out-of-pocket payments. When you run out of money, Medicaid picks up the tab.

The very, very poor and the very, very rich don't really need long-term-care coverage. Those in the middle do.

Here are a few ways to bring the price down:

• Shared coverage. You share the benefit period with a spouse. If one of you gets sick and the other does not, you pool the benefits for one person's care.

• Reduced benefits. Most people do not require care beyond three years, so consider shortening the benefit period to five or six.

• Longer wait. By extending the waiting period for coverage to kick in, essentially upping your deductible, you'll pay a smaller premium each year.