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(Wendy:)The deal that DH and I are doing pays $1500 per year out of pocket into the WLI policy, which has a cash value of about $50K. The WLI then pays $3000 per year into the LTCI policy, partly from dividends and partly from cash value, which will provide LTCI up to $250K each = $500K, usable for home or institutional long-term care.

Like all insurance, I hope that we will never collect on this because LTCI only kicks in if the situation is dire. In my opinion, $1500 per year is a reasonable price to pay for additional peace of mind. By buying insurance at a fairly young age (I am 59, DH is 61), the annual cost is relatively low. This arrangement multiplies the value of the WLI policy by 10.

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My wife and I also just took out LTC insurance at the start of this year. Coincidentally, I'm 59 and she's 60 (at least for now.) So by now you realize you're not really that young!

But seriously, this is about the prime age to be buying LTC, trading off the monthly premiums which will increase, vs. the number of years to be paying.

Did you get an inflation-adjustment feature?

Bill
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