Long Term Care

[Noah930]

Anyone buy into this? It's a bit of an insurance policy, I suppose.

My financial guy is trying to sell me on the idea. But I have the suspicion that there has to be some sort of commission/sales quota/performance bonus involved.

Or, am I missing something and this is actual not unsound financial advice?

If the devil's in the details, what should I look out for in a policy?

[nb6179505]

Can you afford to pay for your extended Care in a home if you have dementia? If not, you should look into it

Like any insurance, it's transferring risk

Now a days, they have several forms of coverage. I do sell it, full disclaimer, but seriously ask people who've had to put their parents in a care home and what it costs. Otherwise get ready to spend down assets, sell your home or reverse mortgage

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[nvr2mny]

The wife and I have had separate policies for years. Lots of bad fam history on both sides. Just a hedge if you will. Our respective mothers (89 & 90, still living, but with major health issues) have been in assisted living facilities for years and it’s horrendously expensive. We want to be able to stay in place as long as possible and not be a burden to our kids.

[Evans, Marv]

I signed up for a long term care policy in the '70s. At that time it only covered $24K for a limited time. I decided to let it go. That amount of coverage was pretty much a drop in the bucket even then. Care costs are huge now compared to then. I think a person should be able to make the decision to end his/her life at a certain point rather than have to wipe out their estate, family, or the State. of course that's not for everyone.

[LWJ]

I do business insurance. LTC got a bad rep. High commission. Weird benefits. High pressure sell.

I have been told that life products are the way to do LTC today.


Agree that there is big exposure. Just not sure how to finance this.

[JavaBrewer]

My Mom is currently in a skilled nursing home attempting to recover from a broken hip and leg. She is a lifelong functional alcoholic now paying the price. The facility she is in is decidedly mediocre, they wheel the residents in wheelchairs in front of the nursing desk during the day so they can be watched as a collective for hours at at time. Uncomfortable in the wheel chair...sucks to be you. Out of pocket this place would run $15K/month to start, to survive in misery. Medicare and her supplemental insurance is going to call it at the 100 night mark, we will pull her sooner than that. She will live with us and we will find a way to make it work without losing our mind. Somehow.

I have no faith in insurance. This industry is rife with corruption and are really geared to drain the lifelong savings and estates of everyone who passes through the doorway. No dignity, no compassion, just greed. I am almost 58 and am certain that any policy I sign up for today to provide long term care won't even pay the meal plan of a nursing home 25-30 years from now.

[nb6179505]

Originally Posted by JavaBrewer

My Mom is currently in a skilled nursing home attempting to recover from a broken hip and leg. She is a lifelong functional alcoholic now paying the price. The facility she is in is decidedly mediocre, they wheel the residents in wheelchairs in front of the nursing desk during the day so they can be watched as a collective for hours at at time. Uncomfortable in the wheel chair...sucks to be you. Out of pocket this place would run $15K/month to start, to survive in misery. Medicare and her supplemental insurance is going to call it at the 100 night mark, we will pull her sooner than that. She will live with us and we will find a way to make it work without losing our mind. Somehow.

I have no faith in insurance. This industry is rife with corruption and are really geared to drain the lifelong savings and estates of everyone who passes through the doorway. No dignity, no compassion, just greed. I am almost 58 and am certain that any policy I sign up for today to provide long term care won't even pay the meal plan of a nursing home 25-30 years from now.

Biased opinion, it's contractual agreements, the people that get screwed are the ones that think the policies covers one thing in their mind when it actually doesn't

I don't think it's fair to say it's a waste, I'm sure that's not what people think when they benefit from any insurance, auto insurance, homeowners, life, long term care...

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[Bill Douglas]

These companies make it their business to blur the line between what you understand the agreement to be and what is reality.

It's pretty scary out there.

[jcommin]

My mom was in a nursing home for 4 years from 1994 -1998. Her last year cost around $50K. I was lucky my mom and dad had money to cover this. I have a friend whose mom just past in 2017 and she had 24 care in her own home She had care for 5 years - that cost was $90K annually.

I recently looked into it as part of my financial plan. I'm 69 years old. My planner almost laughed at me - in 20 yrs, 24 hour in home care will probably be north of $350K.

[flatbutt]

That's why I'm hoping that I die in a fall while trying to escape from a gf's second floor bedroom window.

[KFC911]

Very long term....I don't GAF and I don' t care....it's free

[KFC911]

Originally Posted by flatbutt

That's why I'm hoping that I die in a fall while trying to escape from a gf's second floor bedroom window.

Quit hoping....mover up 10 floors

[red-beard]

Originally Posted by Noah930

Anyone buy into this? It's a bit of an insurance policy, I suppose.

My financial guy is trying to sell me on the idea. But I have the suspicion that there has to be some sort of commission/sales quota/performance bonus involved.

Or, am I missing something and this is actual not unsound financial advice?

If the devil's in the details, what should I look out for in a policy?

My parents have it and my dad is now in a wheelchair. He has about $250K in funds. They have a caregiver come in and help 8 hours a day, 5 days a week.

If you can "see the writing on the wall", have arthritis, joint issue, etc., or in the family, it may be a good choice.

[Sooner or later]

Is your "financial guy" a CFP? Fee only?

Currently, about 5% of the 65+ population end up in some type of long term care. Avg US annual cost is nearing $90,000 a year. Those rates are only going to climb higher.

It should be part of a complete plan and not just an add on to a jumbled together "financial plan".

[Baz]

What I was thinking instead --- is to take the funds you would have used for LTC insurance --- and invest them instead into construction of a living "area" for your loved ones. Either as an addition to your existing residence or the property next door.

It could even be a separate structure on your property such as a carriage house or maybe garage/shop/living quarters combo.

There's also the option to re-locate to a property that already has what is needed - because there usually are plenty around.

I realize in some situations it's better to have your loved ones in a facility run by someone else.

But in many case, being the one who cares for them, maybe with a weekly visit from housekeeping/nurse/etc., I don't think you could do better - including on the financial aspect.

[Sooner or later]

Originally Posted by Baz

What I was thinking instead --- is to take the funds you would have used for LTC insurance --- and invest them instead into construction of a living "area" for your loved ones. Either as an addition to your existing residence or the property next door.

It could even be a separate structure on your property such as a carriage house or maybe garage/shop/living quarters combo.

There's also the option to re-locate to a property that already has what is needed - because there usually are plenty around.

I realize in some situations it's better to have your loved ones in a facility run by someone else.

But in many case, being the one who cares for them, maybe with a weekly visit from housekeeping/nurse/etc., I don't think you could do better - including on the financial aspect.

It depends on the illness.

I will try to make this short.

Mom and dad were in decline but still living on their own. We ( two sisters and myself) tried to get them into assisted living but they refused. Shortly thereafter dad got a kidney infection and was hospitalized. I volunteered to stay with her. Reality set in. She was in deep trouble. She would get up in the middle of the night to "go to church or go to the store". I was lucky to hear her.

So I started sleeping on the floor in front of her bedroom door. The 3rd night she got up, spotted me and panicked. "Call 911!!!!" she screamed, thinking I was a burglar or something. She proceeded to beat the living crap out of me. Clawed my head, chest and back with long gashes. She was uncontrollable. Called little sis (hubby was a cop) and they came to help. She was hospitalized and placed into a home after being drugged into a drooling zombie. She passed in less than 3 months.

Dad was placed in a home after never really recovering. He lasted 6 years.

It was terrible. She went from a loving sharp older lady into a crazed person. All because she missed her man of over 50 years.

Please, put plans for your death in place today. Let family know your wishes. Get legal documents in place. Don't wait.

[jhynesrockmtn]

My State Farm guy said most of the LTC policies once sold in the state of Washington are now defunct. I think there is only one plan that is available per my last discussion with him. Given my type 1 diabetes I am not eligible anyway. Can't buy life insurance anymore either :-) that's okay, if I croak tomorrow my wife is set up pretty well.

[KFC911]

That's tough to read SOL...most fear, that no matter what...you chose wrong....total crapshoot for many, if not most...

i wish my parents had never met "their guy".... CFP/LTC/Var Annuities.....by one of the worst....well, not bad for "them"...long term

Fired...

[MBAtarga]

Clark Howard is a local Metro ATL consumer rights guy that is very popular as he started on TV many years ago on a newscast and he has expanded to have his own web site (clark.com) and radio show. His site has lots of information/advice on all sorts of financial matters, insurance, car purchasing, financing, mortgages -you name it.

I periodically frequent his site to get general information. He's got several pages relating to LTC - here are two:

https://clark.com/insurance/long-term-care-insurance-honor-roll/
https://clark.com/insurance/why-to-consider-long-term-care/

[Baz]

Originally Posted by Sooner or later

It depends on the illness.

---snip---

Absolutely.

And even when you have a plan in place - things always change and you have to re-think things.

I'm sorry you had to go through all that - but much respect for being a good son and doing what you could do.