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[quote=Anonymous]I've been studying this for several weeks, so I've learned a bit but I would benefit from some input.  We're facing the following choices:

1. Self-insure (not "rich" but the LTC policies all have limits too)
2. Traditional LTC (the kind where the premiums can increase over time) 
3. Traditional LTC like #2 but "shared" between the spouses (so the ill or surviving spouse can get more coverage than on a "single" policy.
4. Hybrid Life insurance/LTC (If you don't use it, there is a death benefit that goes to a beneficiary when you die; also you normally have the opportunity to get the premium or part of it returned).  This can be "single premium" up front or over a number of years (10/20/lifetime), but the total premium is fixed so they can't jack it up later.  The single premium is huge and you risk the insolvency of the insurer, but there are state guaranty associations that protect the insured up to a certain amount.  
5. Same as #4 but with the shared care between spouses, so the death benefit isn't paid out until you are both dead.

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a.  Do you personally know people who had to tap into this for nursing homes, etc? My sample is very small. I only know people who paid into it and died before collecting on it because a spouse or relative took care of them OR because they were so ill they were hospitalized and died after short to medium illnesses. In the case of my father, he got tired of paying the ever higher premiums and dropped it, but luckily my mother was able to care for him at home until he passed away.  (She continued her policy and it is more likely that she will need it as the surviving spouse.

b.  I'm leaning toward #5 with the payments spread out over at least 10 years, but it is still expensive and the coverage is not fully adequate (we'd still have to self-insure part of it).  But by then we might not have all of our normal living expenses since we would be in an institution.  (More likely one of us, but there would still be fewer normal living expenses.)

I would appreciate any personal insights.  It is the most depressing and complex topic so far in our estate planning!

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