Amy and Mark,
Thanks again for our call on Tuesday. I’ve put together your revised long-term care (LTC) insurance quotes based on everything we discussed.
Here’s what I prioritized:
- A refund to your children if benefits go unused
- Maximum flexibility in how benefits can be used
- The lowest total cost
To estimate future care needs, I looked at assisted living costs in Gainesville, TX. Since Wesley Partners and Wheeler Terrace don’t list pricing online, I used average costs from the nearby Sherman, TX area. Assuming 4% annual inflation, assisted living is projected to cost around $165,000 per year in 25 years.
I reviewed top policies that include refund features—specifically from Nationwide, Securian, Brighthouse, Lincoln Financial, and OneAmerica. Based on your goals, I believe a Nationwide policy—widely considered one of the most popular on the market—offers the best fit for you based on my comments below.
🔁 Revised quotes
The first two options are individual policies, while the third—Nationwide Together—is a joint policy. All three include 3% annual growth to help your benefits keep pace with rising long-term care costs.
📝 My notes
From the quotes above, you could choose two individual policies or one joint policy for both of you.
All of these policies share a few key features:
- Cash indemnity benefits: You’ll receive a monthly check to use however you’d like. You don’t have to spend the full amount right away—you can save it for later care.
- Refund if care isn’t needed: If you never need care, the refund passed to your kids would exceed what you paid in premiums. 👀
- Highest minimum refund: Nationwide offers the highest minimum death benefit on the market, ensuring your kids receive at least this guaranteed refund if you need care.
- 90-day waiting period with a twist: Like most carriers, Nationwide requires a 90-day waiting period (we discussed this on our call). However, they retroactively pay for those 90 days once benefits begin on day 91.
- 4 years of benefits each: To keep premiums affordable, 4 years of coverage is often a sweet spot. On average, men need 2.2 years of care, and women 3.7 years.
- Good annual benefits: This $100k premium provides $85k–$92k per year in benefits by age 80 for each of you, while assisted living is projected to cost $165k per year. You can bridge the gap using personal savings and Social Security. If you'd like higher annual benefits, you can increase your premium—your benefits will rise proportionally (e.g., by 25%).
👫 Is the joint policy better?
Nationwide Together offers a few pros and cons compared to two individual policies:
- Pro: You’d have 8 years of shared benefits, giving you more flexibility. For instance, if Amy needed 6 years and Mark 2, you’d get the full 8 years. With individual policies, Amy would be limited to 4 years, and so would Mark.
- Pro: Your annual and total benefits are a little higher.
- Con: The total refund is smaller, and it's only paid after both of you have passed away. In contrast, with two individual policies, each refund is paid separately after each person passes—so the money is returned sooner.
You can read our review on the Nationwide CareMatters and Together policy.
🧐 My thoughts
As we discussed on the phone, no one can predict the future. Personally, I’d lean toward the joint policy solely for the added flexibility. If one of you ever needs care for more than four years, you’d have access to a larger shared benefit pool.
👉🏻 Next steps
Once you’ve had a chance to review your options, let me know if the individual or joint option looks like a better fit and I can email over policy docs for your review (zero commitment).
📺 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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