My wife and I recently attended a LTC informational seminar and are now considering purchasing a policy. We live in Ohio. I am 40 and my wife is 50. We met with one broker, who recommended the MedAmerica Simplicity policy. Is this really the best deal out there for us? (If you need to know more about us to answer that question, just ask.)

How should we decide on the "pay forever" policy vs. one that is paid up in 10 or 15 years? If we can afford the premiums now, is it always better to go for the paid-up policy?

Our broker said something about the Simplicity policy paying for 24 months. Does that mean that after 24 months of payments we'd be on our own if one of us still needed care?

We're just getting into this, and this is my first post here, so please forgive my ignorance. Any suggestions are welcome.

Thanks,

-Mike

You really need to find an independent LTC insurance specialist in your area - someone who works with a few of the top carriers - and spend some time discussing this with him or her.

You've asked a very loaded question! Some agents will tell you MedAmerica is the best thing since sliced bread, others will tell you it isn't. Compare some carriers - their financial ratings, their financial strength, their track record with LTC insurance claims and sales. The key players are John Hancock, MetLife, Genworth, and Allianz.

As to the 10 or 15 or To Age 65 pay plans, there are a couple of advantages. first, you can get this out of the way as a retirement benefit, and no longer have to worry about the premiums. Good deal. Second, once you finish your payment period, you're protected against future rate increases. Very good deal. But, you have to be able to afford it.

The "24 month" benefit period is up to you. When you design your policy, you will choose the "benefit period" that makes sense for you. 2 Years is pretty minimal, but of course your plan is dictated by your needs and budget.

Good luck.

mgd;

I'm one of those agents who will tell you that MedAmerica's Simplicity policy IS the greatest thing since sliced bread. However, that's just one broker's opinion. However, LTCSelling.com did rate Simplicity as the #1 LTC policy in the country.

Cash-Benefit policies (in my opinion) are superior to reimbursement policies. The only downside is the premiums are higher.

I agree with kpbdy that a 2 year benefit period is not the best choice. I would recommend a 3 year minimum and ideally a 4 or 5 year policy, if affordable. You might want to consider a slightly lower monthly benefit, a community care option at 60% and a longer elimination period to soften the premium.

I also agree with his comments on a 10-pay option.

Everyone has different needs and if you feel that Simplicity suits your needs, you're comfortable with the premiums, and you've done your research, go for it.

Arthur