Long Term Care Insurance

Parent Cafe
1

<p>Can anyone give me some expert information on long term care insurance for folks in their mid to high 50’s? Best way to shop for it? What to look for? Is it advisable to have it? Thanks.</p>

2

<p>Read the policies carefully, so you understand what IS and ISN’T covered, when it kicks in, etc. it’s all by contract, so read carefully. Check the financial stability of any company you’re considering, as you need them to be sound for decades. </p>

<p>You have to weigh your assets vs the cost of care. Those with very high assets can self-insure if they choose. Those with very low assets may get Medicaid to cover their costs. Those in the middle are the ones who may most benefit from considering LTC. </p>

<p>You can get some info here, even if ultimately you can’t buy coverage thru this plan because you aren’t fed employees. It has good tools and info. </p>

<p><a href=“https://www.ltcfeds.com”>https://www.ltcfeds.com</a></p>

<p>Our family have all opted to self-insure and believe it works best for us. Others get great peace of mind from having coverage. There are prior threads on this subject that you can search. </p>

3

<p>I bought LTC a few years ago after much study and research. After reviewing all the pros and cons I decided to purchase policies for my wife and me. The one scenario that bothered me the most, which was the deciding factor, was the situation where one spouse needs LTC for a number of years, and then after his/her demise, the other spouse outlives the deceased spouse for many years after a significant chunk of their assets has been spent on LTC. The insurance will hopefully avoid that problem so the surviving spouse is not burdened by LTC costs spent on the deceased spouse.</p>

<p>I spent a few months learning all I could about the insurance, consulting a number of brokers/consultants and reviewing policies from 4 different companies before I made a decision. This was a steep learning curve for me because when I started I knew practically nothing about the insurance. Hopefully, I will never need the insurance.</p>

4

<p>Best thing I did was to go to a man who specializes in LTC plans, and could sell me any policy. Don’t waste your time talking to people who can only sell one plan. </p>

5

<p>Lots of threads on this previously with good info. And there are probably more threads. Here are a few:</p>

<p><a href=“Long Term Care (LTC) Insurance - example rates? - Parent Cafe - College Confidential Forums”>http://talk.collegeconfidential.com/parent-cafe/1570180-long-term-care-ltc-insurance-example-rates.html&lt;/a&gt;&lt;/p&gt;

<p><a href=“Who knows about Long Term Care Insurance? - Parent Cafe - College Confidential Forums”>http://talk.collegeconfidential.com/parent-cafe/1520823-who-knows-about-long-term-care-insurance.html&lt;/a&gt;&lt;/p&gt;

<p><a href=“Long Term Care Insurance - Parent Cafe - College Confidential Forums”>http://talk.collegeconfidential.com/parent-cafe/998152-long-term-care-insurance.html&lt;/a&gt;&lt;/p&gt;

<p><a href=“Question about long term care insurance - Parent Cafe - College Confidential Forums”>http://talk.collegeconfidential.com/parent-cafe/558038-question-about-long-term-care-insurance.html&lt;/a&gt;&lt;/p&gt;

6

<p>Also get information about how premiums are calculated and how and when they can be changed. </p>

7

<p>If you can buy through an employee plan, that can be a good deal. Of course you should still do cross-comparisons. </p>

8

<p>We got LTC after my mother developed dementia in her early eighties. She is now 93. My father took care of her as long as he could but eventually she went to a nursing home and he went to assisted living, until he passed away last year at 96. I calculated the benefits they received over 8 years was 6 times what they paid in premiums. Premium payments stop when a claim is filed. That insurance made it possible for them to choose the best living options for their circumstances. </p>

9

<p>Sometimes you can lose the one purchased through the employer if you leave the company. Happened to a friend of mine.</p>

10

<p>We’ve thought a lot about this. My conclusion has been that the benefits cap makes it not necessarily a great deal. The statistics, I guess show that they are hitting the “sweet spot” and that very few people required long term care for a very extended time. But to me, that’s what you really need to insure against, and as far as I can see its not offered.</p>

<p>When I bought disability insurance in my 20’s the salesman pointe out that the policy paid instantly, and lasted for a year. I observed that I could take care of myself for 6 months to a year and I needed insurance in case I was truly disabled. His pitch was that 90+% of people were either recovered or had died within the year’s coverage period. My pitch was that I wanted insurance against being an outlier. We finally agreed on a custom policy that didn’t start until I’d been disabled for 6+ months and lasted until I was 75 or something. He said “that’s not likely to happen” and I replied that it ought to be cheap to insure against then. </p>

<p>Its one of the problems in buying insurance. If its something that you really expect to “use”, it can’t possibly be inexpensive.</p>

<p>Leftwinger: what company wrote your policy?</p>

11

<p>Both my inlaws had it. One died of cancer without ever having used it. The other ended up in a nursing home for five month. The amount of money they spent on the premiums would have paid for their care many, many times over. </p>

<p>I understand that insurance is just that: insurance. But I also believe that you would be much better off taking the amount of money you would have spent on the premiums and put it away. So…self insuring. That’s what we’re doing and have been for almost 15 years. We now have more than the policy would ever have paid out. Very good chance we won’t both use it.</p>

12

<p>If worried about never using it, consider a life insurance policy with long term care rider. If you need long term care, the policy pays for it as an advance on the life insurance proceeds. Whatever is left is paid as a death benefit. Since death is certain, you cannot waste your money. In fact, you’re guaranteed to receive way more than you pay in premiums, all tax free. It can also be more cost effective in the long run since premiums do not increase. It’s life insurance. Long term care premiums have increased a lot in recent years, and will probably continue, since carriers don’t know how to price for it.</p>

13

<p>We bought our policies four years ago when premiums were probably quite a bit cheaper than they are today. The benefits in my policy increase at an annual compounded rate of 5%. I can’t remember the exact numbers but I think the benefits are almost three times what they are now in 20 years. My fervent hope, however, is that we never use them.</p>

14

<p>Many (all?) LTC policies cover in-home services that can prevent need of nursing home. That was appealing to us. </p>

<p>"Sometimes you can lose the one purchased through the employer if you leave the company. " - True. DH’s is offered through John Hancock… no employee involvement other than opportunity to enroll as part of “group”. </p>

15

<p>Thanks, jym, your links are very helpful. I started to read more about the subject, which can get quite complicated. I am still somewhat confused, but I will get there.</p>

<p>Few people in those links suggested Genworth, I will get quotes from them, just checked site for federal employee LTC policy, their premium is expensive. Anyone on cc has purchased LTC policy through USAA? If so, what is your opinion on USAA?</p>

<p>Also, do most policy have a benefit period, or for unlimited number of years with same premium over the years?</p>

<p>Thanks.</p>

16

<p>The policies I’ve seen vary. Many have a total amount they will pay out as a cap. Once you qualify for services, you have a choice as to how quickly or slowly you reach the cap, by how you choose services–in home care until you need more expensive assisted living, for example. </p>

17

<p>Recent article in the Wall Street Journal about picking the best policy for your needs: <a href=“Mistakes to Avoid When Shopping for Long-Term-Care Insurance - WSJ”>http://online.wsj.com/news/articles/SB10001424052702304756104579449482245063704&lt;/a&gt;&lt;/p&gt;