Long-Term Care Insurance

Overview of LTCI
o Provides life-long coverage for activities of daily living (via inhome care or assisted living)
o Coverage would be provided when needed, regardless of age
o Payable if claimant cannot complete 3 of 5 activities of daily living
(eating, bathing, dressing, etc.)
o In NYC, long-term care typically costs $245 - $567 per day
o Average cost of daily living in long-term care is $370/day

Recent Quotes
o Assumes $400 daily benefit, 3% COLA rider (simple compounding),
90-day elimination, and Home Health Care rider
o 3-year Benefit (pays daily benefit for 365 days x 3 years)
Quote: $3,895/yr
Total available benefit: $438,000
o 5-year Benefit (pays daily benefit for 365 days x 5 years)
Quote: $5,450/yr
Total available benefit: $730,000

NOTE: Quotes include home care rider (10-12% additional premium) which allows
claimant to receive benefits for in-home care (otherwise claimant must be in LTC facility
in order to receive payments)