A LTC CASE STUDY
by John B. Linvill, Jr., CSA ~ April 2010

Almost 20 years ago my mother purchased a long term care policy with the
following benefits:

• Daily Benefit: $75
• Annual Benefit Increase: 5% Simple
• Benefit Period: 3 Years
• Annual Premium: $1,200

At year 18, she went on claim.

• Total premiums paid; $21,600
• Monthly benefit: $4,200
• Benefit Period to recapture premiums paid: 5.1 months
• Monthly benefit ($4,200) x 36 months = $151,200 (total benefits over 3 years)

My mother is now into her 2nd year of benefits.

I project that she will use all three years of benefits.

Should this occur, her benefits received will be exactly 7 times her total premiums paid.

John B. Linvill, Jr., CSA ~ (610) 688-1587
www.jlinvillLTC.com ~ www.jlinvill.com

All Material ©2010 John B. Linvill Jr., CSA
Reproduction of this article is prohibited without the express written consent of the author.
Inflation calculations are based upon current economic statistics and estimates for the Philadelphia area.