[Fredslist] What Would You Have Done?

[Howard Bersch]

WHAT WOULD YOU HAVE DONE?
By Howard W. Bersch
Independent Insurance Broker
201 567 3236
howard at hwbinsurance.com
April, 2009
 
As they say in the movies, “This is a true story based on actual facts”.
 
Like many of you, my business is off a bit and I have been looking for ways to cut my expenses. Coincident with this expense review, I received my Long Term Care Insurance policy semi annual premium notice requesting payment of $2,124.81.
 
So I added this policy to my expense review and thought I would share my analysis with you.
 
First, some necessary background:
 
On March 28, 1999 my policy was issued. The semi annual premium was $1209.35 and the policy provided the following benefits:
 
Monthly benefit amount               $4,500.00
Elimination period                       90 days
Maximum benefit amount            Unlimited
Home care                                 $4,500.00
Home care provider                    Professional (Licensed caregivers)
Inflation rider                             5% simple
 
On September 28, 2000, at the request of my children my policy was amended and the Home Care Provider Benefit was changed to “Total Home Care Benefit”(family and friends can provide care). This change resulted in the semi premium increasing to $1,931.65.
 
As of my March 2009 semi annual premium notice the insurance company applied for and was granted a premium increase by the New Jersey State Insurance Commissioner. This was the only premium increase requested by the insurance company since this policy was introduced in New Jersey.
 
I can request several changes to my policy to reduce my semi annual premium. For example, if I go back to Professional Home Care, my semi annual premium would be $1,488.88. Or, if I change the Maximum Benefit Period to 6 years, the semi annual premium would decrease to $1,392.76. Or, if I reduce my monthly benefit amount to $3,600.00 the semi annual premium would be $1,699.86.
 
I can make any one of these individual changes or a combination of them.
 
WHAT WOULD YOU DO?
 
If you are interested in knowing what I did, please call.
 
 
 
 
 
 
 Howard W. Bersch
tel. 201-567-3236
fax. 201-567-6210
email. howard at hwbinsurance.com
website.www.hwbinsurance.com 
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