I see how LTC insurance premiums are captured, but does Pralana model the "spend" side to capture the benefits?
@patton525 The spend side is modeled based on your inputs on the Build > Expenses > Long Term Care page.
Stuart
@smatthews51 I thought this was intended for the cash outlay to pay for a LTC insurance policy premium itself, not the cost of care. I guess a better place to capture the premiums would be under insurance premiums on the health care page since it includes a "health care" cost inflation adjustment (but this section does not use the "LTC inflation" adjustment). Correct?
So Pralana does not allow the benefits of the LTC policy to be a source of payment for cash outlays specific to LTC cost of care expenses. Correct?
@patton525 Correct in both cases. Pralana does not currently model LTC insurance policies, so you would need to reduce the effective cost of LTC (as specified on the LTC expenses page) by the amount you expect to be covered by your policy.
Stuart
I see a lot of folks using the LTC page to enter premiums, so maybe clarity is needed there, or else LTC payments added to the health care page explicitly. Also be careful that LTC "insurance" through annuity or whole life LTC riders don't have the same tax deductibility as regular LTC policies and expenses, from memory. But yeah, the expenses on the LTC page should be your out of pocket, after any insurance help (and don't forget about those delay periods...) A good calculator to use is below. Keep in mind it's from an insurance company, so costs somewhat inflated to get you to buy insurance. I have clients get the annual cost in today's dollars (so, for current year) for the type of care they think they might want (in-home vs assisted living, etc) in the zip code area they think they might be living. https://www.genworth.com/aging-and-you/finances/cost-of-care
Can someone help me grok what distortions happen if I enter LTC insurance premiums starting at the age of 70 and lasting until end of life under EXPENSES->HEALTH->LTC? Many thanks.
@hines202 I have both the LTC premiums and wild guesses as to LTC actual costs (net after the insurance benefit kicks in) on the Long Term Health page. Are you saying it's better to put the LTC premiums elsewhere?
For estimates, I used the John Hancock Cost of LTC calculator. It produced results about 10% higher than the one you linked to, which may be because it allows users to enter their own inflation rate.
https://caregiveradvocate.com/johnhancock-cost-of-care/wellness/cost-care-public
T
