Long Term Care Insurance

The Tax Attic with Jerry Coon — May 20, 2010

May 20, 2010 // 0 Comments

Final discussion on long-term care insurance I have a few final items to cover this week concerning long-term care insurance policies. Specifically, there are three areas I want to discuss. This week, I am using a quote Deb and I received from Genworth Life Insurance Company. First, instead of Deb and I buying individual policies, should we take the alternative of buying a joint policy? Second, should we buy a survivorship rider that will pay up all future premiums should Deb or I pass away? Third, should we buy a rider that will return our unused premiums if we die before making a claim? First, it does appear to be cheaper to buy a joint policy than Deb and I each buying individual policies. The joint policy annual premium for the quote was $2,415 for a total of 72 months of coverage. That compares to a total annual cost of $2,815 for individual Deb and Jerry policies that covers 36 months for each of us. On the joint policy, we do get a little more flexibility, because it doesn’t make any difference which one of us uses the 72 months. I could use two months, for example, and the other 70 months would be available for Deb, or vice versa. The minimum months of coverage on joint policies does appear to be 48 months of insurance coverage, while individual policies can be purchased for as short a period as 36 months. It might make sense for Deb and I to purchase a joint policy for 72 months rather than individual 36-month policies. Of course, that presumes we will never let the policy lapse. If we have two individual policies, we could let one lapse, mine for example, and keep Deb’s in force. We would not have this option available to us if we had just one policy. Dropping that policy would drop everything. It can’t be a snap decision to buy the joint policy. Second, the question becomes should we buy a rider that pays up all future premiums should Deb or I pass away? As part of this particular policy, and at no extra cost, should we pay in for 10 years without making a claim, and then Deb or I pass away, and […]

The Tax Attic with Jerry Coon

May 13, 2010 // 0 Comments

One of the reasons I love baseball left us last week. Ernie Harwell passed away last Tuesday from cancer. Ernie and his partner, George Kell, were the voices of baseball when I was growing up in Coopersville in the 1950s and 1960s. Ernie had a special way of bringing the game alive for me and George was among the best third basemen ever. Back then, there was no ESPN, no Fox Sports, and no cable TV. The Tigers were on Channel 3 and the picture was fuzzy, at best. Few games other than Saturday day games were on TV and, since I wasn’t about to stay inside to watch baseball on TV in the summer, radio was my connection to baseball. It’s still my preferred way to take in a ballgame. In the 1970s, Ernie teamed up with Paul Carey. Ernie was still Ernie and Paul had that deep voice that I imagined was what God must sound like. They were even better to listen to than Ernie and George. Too bad the teams, for the most part, were so bad. Paul retired in 1991, but Ernie hung in there until 2002, when the Tigers requested his retirement. I am one of those who do believe there will be baseball in heaven. I might actually be able to hit a curveball and maybe will get a chance to do some announcing. Who knows, maybe Ernie will be able to hit a curveball, too, and instead of always announcing, he will get to play, too. Imagine that, me announcing a game and Ernie playing. That could only happen in heaven, but how much fun that would be. Before some of us get to heaven, we are going to go through some bad times down here. Those bad times may include home health care, assisted living, or nursing home care. Those bad times can be very expensive. So expensive, in fact, that many of us will spend every cent we have accumulated and will be forced to go on Medicaid. An alternative available to cover some of that expense is to buy long-term care insurance. Deb and I were given a quote from three popular carriers, John Hancock, MetLife and Genworth. The basic quote covered $230 per […]