Hi guys,
Below you'll find your long-term care (LTC) insurance quotes along with how I arrived at them.
💰 How much insurance?
When we spoke, you said you wanted meaningful coverage, but not to insure every dollar. The rest can be covered by savings and Social Security.
By the time you both turn 80 (about 30 years from now), the average cost of assisted living in the U.S. is projected to be around $230,000 a year, assuming 4% annual growth. Costs vary by region (e.g., Texas: $204,000, Colorado: $228,000 😀).
Since it’s hard to know where you’ll live in 30 years or whether you’ll need higher-cost memory care, we’ll just use the national projection of $230k. For meaningful coverage, I’ve targeted about 60% of that amount: $144,000 per year at age 80 in the quotes I’m sharing with you.
This is just a working estimate. I’m happy to adjust the coverage up or down based on your preferences.
🔎 Your quotes
Based on both the previous and updated pre-screen feedback, I expect L should be fine since tremors aren’t noted in any official records. For K, we know that Nationwide is a definite no, Securian is now a maybe, OneAmerica is likely, and Lincoln Financial is our most probable yes. This is exactly the kind of clarity we want before submitting formal applications.
Our top priority is securing coverage, so I’d recommend:
- L: Any carrier (although Securian has asked if you have a medical marijuana card 🙄)
- K: Lincoln Financial or OneAmerica (I wouldn't take a chance on Securian)
Lincoln Financial’s policy is similar to Securian’s, though the quoted benefits are slightly lower. Benefits are paid as reimbursement or at 80% in cash. A key advantage is that benefits start on day one of care, with no 90-day waiting period like Securian. You can read more in this review.
As a reminder, you can each apply for different policies (OneAmerica also offers individual options).
🧐 My notes
Both of these are great options with distinct tradeoffs.
1️⃣ Option 1 - Securian SecureCare
These are two individual policies, each with 6 years of benefits. Securian is a highly rated insurer and one of the most popular policies on the market. Read the review.
- Pros – Cash benefits (super flexible, no receipts); refund to your kids of more than you paid if you never need care
- Cons – Coverage ends after 6 years, which may not be enough for extended memory care
Pre-screen feedback from Securian
- L - Ok, if tremors have been fully evaluated and not neurological origin
- K - Cerebellar hemangioblastoma – no complications or limitations after the resection. Iron deficiency - symptoms and blood counts stable for 6-12 months with no further palpitations. Cholesterol – well controlled on medications.
Payment options
Paying over a shorter period lowers your total cost. Below are the payment options for each of you (monthly payments are also available):
- Go with 5-pay only if your after-tax return on safe assets is above 4.66%; if not, single-pay is the better deal.
- Go with 10-pay only if your after-tax return on safe assets is above 4.24%; if not, single-pay is the better deal.
2️⃣ Option 2 - OneAmerica Asset Care
This joint policy provides lifetime benefits. I consider it the gold standard in LTC coverage, though it comes with some tradeoffs (see below). Nicole and I chose this policy ourselves. Read the review.
- Pros – Lifetime benefits
- Cons – Higher cost, primarily reimbursement benefits and about half the refund compared to Securian
Pre-screen feedback from OneAmerica
- L - Ok if Parkinsons is ruled out
- K - Ok to proceed
Payment options
Below are the combined payment options for both of you (monthly payments are also available):
- Go with 5-pay only if your after-tax return on safe assets is above 13%; if not, single-pay is the better deal.
- Go with 10-pay only if your after-tax return on safe assets is above 7.4%; if not, single-pay is the better deal.
Other notes:
- If you’d like higher or lower annual benefits, you can adjust your premium accordingly—benefits rise (or fall) proportionally (e.g., by 25%).
- The Securian quote is in line with your original quotes from your financial advisor ($1250/mo for 10 years) and OneAmerica is a little higher ($1670/mo for 10 years).
- With Securian SecureCare, you could extend benefits to 8 years or mix and match (e.g., 4 years in one policy and 8 years in another).
- I think you'd be approved for both policies, but I suspect you'd have a slightly higher chance with OneAmerica.
Big picture: As I mentioned, both are strong options.
- If you value strong care benefits along with higher refunds and flexible cash benefits, I recommend Securian.
- If your priority is lifetime coverage for memory care, then OneAmerica is the better fit.
👉🏻 Next steps
Let's set up a call to talk about this so I can answer any questions.
📺 Still learning?
Watch our 7-minute "unboring" video on the features of LTC insurance. That's me in the video.
Thanks,
Jesse
Jesse Vickey at Long Term What?
Schedule a call or 720-263-2188
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