Long Term Care Insurance

[wdfifteen]

Do you have it?
If so, why?

I'm on the fence. It's designed to preserve your assets for your heirs. (Seems like they should be paying for it.)

Should we ignore the possibility we will ever need LTC?

Should we give the cost of the premiums to the heirs now, when they need it most?

Should we give the money to the insurance companies now and hope it all works out?

[id10t]

Depends on how long you plan to live, how much money you got, etc.

For example - my grandparents on mom's side lived to be 99 and 101... and her grandparents lived to the same ages...

LTC insurance paid for in-home nursing care for a number of years. Mom has a similar policy.

[flatbutt]

I did have one policy that was Long Term Disability. When I had to retire for medical reasons it paid me 75% of my salary at the time for two years. I now have LTC for when I need a visiting nurse....eventually.

[Chocaholic]

With long term care being a part of our financial planning, no, no LTC insurance here. Like all insurance, the math strongly favors the ins co. By compartmentalizing retirement funding, the dollars allocated could have bought a modest vacation home, but I suspect it will never get fully used and then pass to our heirs rather than an insurance company.

Very personal and risk-oriented decision, of course.

[rockfan4]

I don't have it.

My mother had it. She was so certain that everything would be taken care of. It paid $100 a day. Who would possibly need that much care? By the time she went into a nursing home, it was just over $200 a day, and I think by the time she passed it was over $220 a day. So yes, it did protect some of her assets, buy it didn't cover everything. This was over 10 years ago, I have no idea what a day in a nursing home costs now.

Your other option, if your assets are protected, is to end up on in a medicare supported nursing home. You don't want to end up there.

[Rusty Heap]

Mom didn't have long term care insurance, but was wealthy.

Brain Cancer Tumor at age 78.

Me and sister took care of her in her home for 15 months .

Time came for Hospice care and a Full time Care Keeper.


Then was time for moving Mom into Assisted Living. 18 months there before she passed. $6500 a month. I had the power of atty and was making all payments out of her savings.

so almost $150K of care came out of her savings plus what we did as a brother sister family for 3 years.


YES I have long term care insurance after my experience. $6500 a month full care ain't cheap for a long run.

[2.7RS]

Never forget insurance companies are business for profit.

Not charities.

I want to spend my savings and enjoy my life

I hope to be able to euthanize myself if my health is not good.

We can do it to our animals. Some countries will allowed foreigners to fulfill their wishes.

That's my plan

[flatbutt]

Originally Posted by Rusty Heap

Then was time for moving Mom into Assisted Living. 18 months there before she passed. $6500 a month. I had the power of atty and was making all payments out of her savings.

so almost $150K of care came out of her savings plus what we did as a brother sister family for 3 years.


YES I have long term care insurance after my experience. $6500 a month full care ain't cheap for a long run.

I'm willing to bet that $6500 / month got her little more than "warehousing". My Moms care was less than that , $4500 /month and all that got her was a bed and meals.

[hcoles]

Originally Posted by Chocaholic

With long term care being a part of our financial planning, no, no LTC insurance here. Like all insurance, the math strongly favors the ins co. By compartmentalizing retirement funding, the dollars allocated could have bought a modest vacation home, but I suspect it will never get fully used and then pass to our heirs rather than an insurance company.

Very personal and risk-oriented decision, of course.

This is what I've read also. It's not a good deal. There are innumerable articles on this. Read about it. No ins. company is going to setup a plan where they are not strongly favored.

[Rick Lee]

I don't know how old Wdfifteen is, but at some point, usually mid-late 70s, buying a standalone LTC policy is cost-prohibitive. A much cheaper way to do it, though with lower coverage amounts, is to buy life insurance policies with LTC riders. You're certainly going to die, so the life policies will pay. And if you need the LTC and have the riders, that'll make a dent in the bills. And life insurance payouts are tax free, even if you've paid far less into it than it pays out. You can stack several final expense policies or, if in excellent health, get a large, fully underwritten one. OH is a good state for life insurance - lots of good companies with competitive pricing.

[Noah930]

Originally Posted by Rusty Heap

Mom didn't have long term care insurance, but was wealthy.

Brain Cancer Tumor at age 78.

Me and sister took care of her in her home for 15 months .

Time came for Hospice care and a Full time Care Keeper.


Then was time for moving Mom into Assisted Living. 18 months there before she passed. $6500 a month. I had the power of atty and was making all payments out of her savings.

so almost $150K of care came out of her savings plus what we did as a brother sister family for 3 years.


YES I have long term care insurance after my experience. $6500 a month full care ain't cheap for a long run.

Mrs. Noah works at an elder care facility. They have a range of options, from assisted living to nursing home. My mom is getting to that stage with dementia, so Mrs. Noah looked into the Memory Care Unit. It’s $500/night.

Now, once you’re admitted, the social workers try to get the resident enrolled in MediCal. Eligibility is income-based, not asset-based. But I think between Social Security and RMDs from retirement plans, my parents won’t qualify for MediCal.

[Noah930]

Originally Posted by Rick Lee

A much cheaper way to do it, though with lower coverage amounts, is to buy life insurance policies with LTC riders.

Heck, a few years ago when I was in my 40s, I looked into LTC policies, and they didn’t seem to be cheap. But based upon my wife’s work experiences with elders at the ends of their lives, we’re looking into adding on a LTC rider onto an existing life insurance plan. We have a meeting set up with our insurance guy next week.

We all know we’re going to die, but it’s the how that matters in LTC insurance. We can have a stroke or heart attack and go overnight. Or we can get dementia or MS and gradually fade away over several years. It’s hard to plan for LTC coverage.

[A930Rocket]

I’m going with Plan B…. expire before I need LTC.

[MBAtarga]

After my wife passes before me, I plan to be die in bed being shot by the jealous boyfriend of my 29 year old, 5' 9" blonde 36/24/36 girlfriend.
Or, die in my sleep like my grandfather - not in panic mode screaming like the passengers in his car!

[rattlsnak]

Going through this now with my dad. He's 89 and he has a LTC policy which also has a death benefit. We are SO glad he purchased this policy several years ago as I just finished all the paperwork and he will be receiving a payout each month to help cover the cost of assisted living.

Read all the fine print in the policy.!! Can't stress this enough.

Just because he is in assisted living, doesn't mean they will pay a dime. He has to not be able to do 2 of the 7 acts of daily living to qualify. They also have monthly caps and a lifetime payout limit, etc..

But in the end, yes, WELL worth it as his place is @$6,100 a month and his insurance will cover $3,000 of it.

[Erakad]

LTC...on average (I'm told) you'll live an average of 4 years once you enter LTC. LTC can run +/- $7000/mo, probably more. With that said, I do have LTC, have been paying for it for about 20 years. I have seen what happens when your estate finally runs out and you still need that care, it isn't pretty. If lucky, the family can absorb it, if not, someone in the family has to absorb it. My hope, is my kids will never have to worry about me or my wife. We have (between us) 8 years of LTC. If one of us uses 2 years, the other gets 6 years...you get the drift. I never want my kids to worry/see what I went through with my mom...it protects my wife, me, and my kids. For the vets out there, the VA can also help with the LTC question. I know it's expensive, but it's a burden I don't want to force on my kids.

[Jeff Hail]

Originally Posted by wdfifteen

Do you have it?
If so, why?

I'm on the fence. It's designed to preserve your assets for your heirs. (Seems like they should be paying for it.)

Should we ignore the possibility we will ever need LTC?

Should we give the cost of the premiums to the heirs now, when they need it most?

Should we give the money to the insurance companies now and hope it all works out?

I manage a persons financial matters who is unable to. Premiums are going up on LTC coverage. The person I manage for has had two claims since the inception. The premium has been paid non-stop since 1996 at $3000 per year for a policy. 27 years cost $81,000 in premiums. 90 day waiting period.

Spouse gets ill with cancer twice from 2001 -2011. Policy pays out for intermittent coverage on and off for caregivers expenses which back then was $15 per hour or $2520 per weekly maximum. Total was about $180,00 paid out (Reimbursed)

Just short of 4 years ago insured is elderly and makes a claim. Can't dress, see or hear, can't prepare a meal himself, no walk or do household stuff or even get in and out of bed without assistance Two caregivers per week (3.5 days each 24 hours per day.) 168 hours per week, 8700 hours per year x $24 per hour.. This claim has had $422,500 reimbursed and paid out. Has weekly policy limits.

$602,500 in benefits for $81,000 in premiums. No brainer. This policy also has a 5% yealy cost of living increase built in for weekly maximum limits. When a claim is made and open the premiums do not increase. No lifetime payout limits.

Other items beyond LTC that may be available through other means:

These items are not limited to hospice care. Other items we have found can be paid by Medicare or if you are a Kaiser member is Home Health Care like physical therapy, washing service for those that are incontinent and need to be cleaned up , DME items like wheelchairs, camodes, shower benches or chairs, Hoyer lifts, medical beds. These really add up if you pay for them.

[unclebilly]

Having just put my dad in LTC a month and 2 days ago, I find this interesting…

Fortunately, in Alberta all LTC is subsidized regardless of a person’s wealth. Dad pays about $2300/mo.

Bottom line is that unless you plan to die in a car crash, pass quickly, or live forever, LTC most likely will be part of your life, like it or not.

[Bob Kontak]

Originally Posted by unclebilly

Fortunately, in Alberta all LTC is subsidized regardless of a person’s wealth. Dad pays about $2300/mo.

Thank goodness. That's not bad.

My Dad (87) was ambulatory and had mental clarity. His place near Charlotte last year was $4,000 for assisted living. He had some kind of circulatory blockage and they opened it up and he said "I'm outta here" to assisted living.

My Mom had a stroke in the early 2000's. Fairly "with it" but crippled movement and speech.

She went into a full care facility after several years paid for by Medicare. They had to turn over her SS/pension in 2007 to Medicare and the old man had to spend down their nest egg to $125k but kept the house and one car. But he recieves $4k of SS, pensions and maybe some annuities that the govt did not touch.

Once they approved it he bought and sold maybe fifty motorcycles across ten years. Did not seem to matter to the govt.

[Crowbob]

I’ve been paying LTC premiums for at least 20 years just to make sure I’ll never need it.

I also carry an umbrella to keep it from raining.