Kanawah LTC Policy

billberry12

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I have an appointment tomorrow with a 74 year old lady that has a Kanawha long term care policy she got about 7 years ago. The premium has been increased from $150 to over $200, and this company does not sell long term car insurance anymore. I'm really not sure of the status of the company. She is healthy enough to get more LTCI. What is the best approach from me as a long term care agent concerning the Kanawha policy? Her main concern is that her policy only pays $100 a day with no inflation coverage, and she feels she needs more. The cost of care for a NH in my state is about $68,000 a year.

Thanks,
Bill
 
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I have an appointment tomorrow with a 74 year old lady that has a Kanawha long term care policy she got about 7 years ago. The premium has been increased from $150 to over $200, and this company does not sell long term car insurance anymore. I'm really not sure of the status of the company. She is healthy enough to get more LTCI. What is the best approach from me as a long term care agent concerning the Kanawha policy? Her main concern is that her policy only pays $100 a day with no inflation coverage, and she feels she needs more. The cost of care for a NH in my state is about $68,000 a year.

Thanks,
Bill

She should probably buy a supplemental policy from you.
I don't think I would replace the Kanawha policy. It's actually a very well-written policy and it's remarkably rich in benefits. Most of them had 3 pools of money. So, a "3 year policy" actually had 3 years of NH/ALF benefits, 3 years of home healthcare benefits, and 3 years of Adult Day Care benefits.
 
Thanks for your comment. That sure sounds like a strange policy. I've never run into but one of this company's policies, but I don't remember it being set up that way. I guess I'll know what she has tomorrow.
Again, thanks for your comment.
Bill
 
"Most of them had 3 pools of money. So, a "3 year policy" actually had 3 years of NH/ALF benefits, 3 years of home healthcare benefits, and 3 years of Adult Day Care benefits"


Scott,
Are you saying that the policy would pay for 3 yrs of Adult Day Care, THEN 3 yrs for HC, and THEN pay for 3-yrs, in either a NH or ALF for a "potential" total benefit period of 9 years?

I forgot who, but I recall one carrier having 2 separate pools (was it Mutual of Omaha?), but like Bill, I never heard of a policy with 3.

In reality, I doubt anyone would ever take steps 1,2 & 3 in that order, so I guess it's really a 3 yr. policy.
 
"Most of them had 3 pools of money. So, a "3 year policy" actually had 3 years of NH/ALF benefits, 3 years of home healthcare benefits, and 3 years of Adult Day Care benefits"


Scott,
Are you saying that the policy would pay for 3 yrs of Adult Day Care, THEN 3 yrs for HC, and THEN pay for 3-yrs, in either a NH or ALF for a "potential" total benefit period of 9 years?

I forgot who, but I recall one carrier having 2 separate pools (was it Mutual of Omaha?), but like Bill, I never heard of a policy with 3.

In reality, I doubt anyone would ever take steps 1,2 & 3 in that order, so I guess it's really a 3 yr. policy.


That's how the policy was designed, Arthur.

A "3 year Benefit Period" meant 3 years of Facility Benefits AND 3 years of Home Healthcare Benefits AND 3 years of Adult Day Care (They even included hospice care in with the Adult Day Care pool of benefits.)

I even think it was paid on an indemnity basis, regardless of the actual cost of care.
 
The only one I have ever seen was Equitable. They had a two year HC only, with a two year NH only, in one policy. That never made sense to me. Never seen anything like this anywhere else before.
 
OK., and yes, I am wondering too. The main thing I want to be sure of is that she knows what her existing policy will and will not do, and to what extent. The only thing I might suggest is a $ 1500 a month policy with a future puchase option, with a benefit period of from two years up to whatever she can afford. That is a minimum with most carriers, and if that is not afforable, I don't know how else I can help her. Opinions??
 
The only one I have ever seen was Equitable. They had a two year HC only, with a two year NH only, in one policy. That never made sense to me. Never seen anything like this anywhere else before.

Mutual of Omaha had a policy with two pools of money that they sold up until about 2005 or so. They still sell one like that here in California.

Hancock had one with two pools that they sold in the mid/late 90's.
 
OK., and yes, I am wondering too. The main thing I want to be sure of is that she knows what her existing policy will and will not do, and to what extent. The only thing I might suggest is a $ 1500 a month policy with a future puchase option, with a benefit period of from two years up to whatever she can afford. That is a minimum with most carriers, and if that is not afforable, I don't know how else I can help her. Opinions??

The only other option I could think of would be to have her move in with you and you can attend to her long term care needs.

Just a suggestion......................
 
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