Smart Money magazine published an article several years ago that argued against buying LTC in your 50s or earlier because the standard 5% inflation protection coverage would not keep up with the average 7% increase in nursing home costs. Basically, the earlier you buy the policy, the larger the gap that you will have between what your policy pays out and what the actual costs will be. Here are a couple of quotes from the article: "The 5% inflation adjustment is the industry standard, adopted by the National Association of Insurance Commissioners (NAIC) in the early 1990s. If the insurance industry were to adopt the 7% inflation figure that some predict, 'the cost would be prohibitive', says Tom Foley, an actuary with the North Dakota Insurance Department who chairs the NAIC's long-term care rate stabilization woking group." "The average age at which people buy long-term-care insurance is now about 65, and given the effects of inflation on your coverage, not to mention the uncertainty of health care costs and public policy 20 or 30 years from now, why buy it earlier than that? 'If there's a liklihood you might develop a health problem that makes long-term-care insurance expensive, you might want to buy it sooner', says Chuck Mondin of the United Seniors Health Cooperative, a nonprofit advocacy group. Otherwise, wait."

Yes, but his information is accurate, so at least it lets Mary know a little bit more as she continues her research. I agree Mark has breached the terms of posting here, but sooner or later Mary's got to talk to an agent or broker to get some idea of whether she even qualifies for an LTC policy, aside from type and price. One can only go so far in continuing to post discussion threads. The trouble with LTC is that people talk about it and talk about it, but very few people actually do it. When people talk about financial planning, this is why I keep insisting that it has very little to do with ROI. True financial planning is mitigating your personal risks against not achieving the retirement lifestyle you want to have. If your LTC risk is high, as ours was, and you don't take steps to mitigate it, your financial planning was and is, inadequate. If you have a high risk of needing help with LTC and haven't budgeted properly for it - whether self-insuring or buying some type of LTC insurance - you are playing dice with your money and possibly involving some risk to those who would need to help take care of you. Mary's got the right idea - you want to deal with a company that is solid and reliable - but she's participated in many LTC discussions over the past four years, and still has yet to 'pull the trigger.' LTC insurance just keeps getting more expensive, and if one waits too long, sometimes the decision gets taken away, by a health issue that precludes getting any affordable LTC policy of any type. I have a sense of urgency about it, because I personally have friends/family who were offered LTC insurance in the last ten years and turned it down, and now that they're closer to retirement, honestly admit they regret not buying it. Now they're terrified, and rightly so...but it's too late for them. They're medically rateable, and can no longer afford it.

I wish I knew more about this topic myself so I can't argue either way - but something in my gut says your financial planner is giving you good advice to be cautious. I googled - explain long term care insurance - and the 4th. article from the bottom of the first page "Avoiding Fraud When Buying Long Term Care Insurance" might have just the kind of information you're looking for.

I bought my life policy eon ago at a very young ago. Dunno what you guys are paying, but I'm borderline 3K yearly on a var life policy. As I ponder and look back, I'm think *term* may be more suited for my lifestyle. Just curious as everyone has a opinion or another re: life insurance.