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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]FLTCIP is now 3.0. Notice they no longer have an unlimited/lifetime option. It suggests to me the long term insurance industry, and the actuaries who priced them, figured out they overpromised. Well, I bought my LTCI at the ripe age of 24 (33 now). An unlimited option with a 4% inflation option (my daily benefits are compounded 4% each year). And, I darn well expect that to be there. No way, I am getting out now looking around the marketplace.

I would create a spreadsheet of what you are being quoted now, anticipate an increase every seven years (when OPM rebids the contract)...just to be safe, double it, and price it when you anticipate to use it (that is, when you anticipate needing nursing home care/etc.).

The big big mistake people are making is [b]anticipating only needing LTC for a short period of time.[/b] Folks: with the advances in science, I anticipate we will be living longer, not better, and I very much expect to be in a nursing home on the tail end of my lifespan. I would suggest you get some sort of protection foryoursel.[/quote]

But the problem is that the unlimited LTC insurance policy you have is no longer available. OP needs to calculate the benefits for 3 years or whatever the policy covers, not longer.  Plus, there is no way to know what the premium increases will be. As the old folks would say, you're buying a "pig in a poke."  I'd rather save my $$ in an investment account and be able to keep the $$ if it turns out I don't need it.

Further, if you have a budget in retirement that includes a generous amount for travel, clothing, dining out, home decor, boat, etc, those expenses will diminish greatly or even disappear completely when you need LTC.  The LTC won't be $150,000 a year on TOP of your current budget. The amount you need to make up will be much less than that.  [/quote]

That's a fair point but I actually am the nutcase who read his policy booklet. The booklet was unequivocally clear that the group policy guarantees continuation of coverage and in the event that the Contract with John Hancock ends, OPM will continue coverage and provide coverage that is "substantially the same as that provided by the Group Policy." I would argue that if they were to pull the rug from me and renege on their deal of providing unlimited coverage, I would take them to court.

And, if you think I'm kidding, I already started looking at all my rights and preparing for the lawsuit. See 5 CFR 875.104.
https://www.ecfr.gov/cgi-bin/text-idx?SID=97a4188f80a446f1d3d25d9ba475a48a&mc=true&node=pt5.2.875&rgn=div5

Long story short: don't trust the insurance industry. [/quote]

I don't have your policy booklet, but the one I looked at when I made the decision not to purchase the coverage had absolutely no commitment regarding premium increases. In fact, it was explicit that premiums could be increased.   "Substantially the same" coverage, yes, but at what price?

And this still doesn't help those who sign up for the new program that doesn't offer unlimited coverage. [/quote]

01/28/2020 16:19 PP here. The premium increases were always there and I agree that the premium increases were explicit in the booklet. However, I read the part when JH can increase premiums and the booklet is also clear that they cannot single me out and raise my premium because of advancing age, declining health, claim status, or any other reason related to me. And, any premium increase must be approved by OPM. I have already done my research as to who in OPM is involved with this, I bought one share of Manulife stock (NYSE: MFC), the company that owns JH so that I could be apprised of their SEC disclosures and financial strength of the company and its insurance products, I have researched fully the FOIA process and request for information about me and any of the process involved with FLTCIP, including the actuaries who are partly to blame.

Sounds like overkill, I'm sure, but I am not messing around with the insurance industry. [/quote]

PP, I appreciate your research on this.  Which version do you have.  (Note: I have 2.0.)[/quote]

PP here: I have 2.0. It is the last plan to have the unlimited option (which is not in 3.0). I monitored very closely what the industry was doing with unlimited plans and saw the writing on the wall: they overpromised. Well, when the time comes, I want the services for which I paid. And I don't think that's unreasonable for me to expect.[/quote]

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