Originally Posted by ltcadviser
It's a current assumption UL.
$4600 annual premium is too low to carry the policy. At age 87, internal rate of return on a $4600 premium for $1,000,000 db is 9.03%.
Policy funding will need to be much higher.
Need $11000 year premium at 5% IRR to fund $1,000,000 DB at age 87.
Pay now or pay much more later.
iow, it'll probably lapse before she needs long term care.
quoting someone I admire, "why would anyone buy a policy like that" (if they really understood how it worked.)