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No. of Recommendations: 1
In our case, I wanted the LTC policies to protect the assets so that one of us would not leave an impoverished spouse because of nursing home care needs for the other. It costs $3600 per year for both of us, and the way I look at this is the same as homeowners insurance. I have it, and hope that I never need it.

An argument can be made that it is better to invest that $3600 per year and use the investments to pay for nursing home care, but I prefer to hedge my bets here and be sure that we are reasonably covered.

I see two major issues with LTC policies:
1.) Premium increases
Premiums increase based on the class and not the individual. Still there are going to premium increases, and the amount is unpredictable.
2.) Insufficient coverage
Too little and the policy is useless. Unless, you have the assets to make up the difference between the cost and the policy benefit, the policy is useless

Most policies are only for 3 or 5 years. New life time policies have been discontinued, and the premiums for the existing lifetime policies have experienced significant premium increases.
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