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Q: So what's the typical overall cost? A: Let's use as an example a 55-year-old couple in good health who purchase a fairly representative amount of insurance with a current value of about $200,000
-- or a $180-per-day benefit for three years each of future coverage including 3 percent compound inflation growth. They would pay an average yearly premium of $1,950 for two standard policies without shared care, according to Slome. Attaching a shared-care rider would push the cost to $2,260. But it could save them money by ensuring that one can get five or six years of coverage if needed
-- more than the length of the policy. Couples over 60 or 65 will pay significantly more. Q: Who is it best suited for? A: Shared care is best for couples who cannot afford lifetime coverage but want to be well-protected in the event of significant long-term care needs. Eva Ng, 53, and her husband Robert Blanda, 62, of St. Paul, Minn., obtained comprehensive coverage this year that costs them $4,500 annually for the equivalent of 10 years of total combined benefits. They paid extra for shared care as well as indexing it for 5 percent compound inflation growth. "We liked the idea that you can get double the amount of coverage with shared care," says Ng. "If anything happens and one of us has to go to a nursing home, that larger amount can cover more assets so we don't have to give up our home.
Q: Why are we hearing about shared care now? A: Long-term insurance carriers are promoting it as an affordable alternative to the once-popular lifetime coverage option, which they're doing away with or making almost prohibitively expensive because of their expenses. When available, lifetime coverage policies cost roughly double the price of three-year policies, according to Claude Thau, a long-term care insurance expert and industry consultant in Overland Park, Kan. Debra Newman, founder of Newman Long Term Care in Richfield,
Minn., says she recommended unlimited coverage to her clients for
years because it cost only about 25 percent more than
limited-duration policies. Now she urges couples to get shared care
instead. "This gives them a way to hedge their bets in case something catastrophic
happens to one of them," she says. ___ Online: American Association for Long-Term Care Insurance:
http://www.aaltci.org/ National Clearinghouse for Long-Term Care Information:
http://www.longtermcare.gov/
[Associated
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