Long Term Care Insurance- buy or not

[Marcella]

The one I have isn't sold any more but those of us who had it still have it at that same rate with the same benefits. I got it in 1990, the premium has stayed the same all these years. It's through New York Life. Medicare only pays for “x” number of days in a nursing home and then you have to pay. It's the same with home care. Medicare just goes so far and that's it - you may have help at home for a few hours a day with Medicare but this policy allows me to have it all day if that is what I need. This long term policy keeps paying for as long as you need the care and that's up to your doctor to recommend it or not.

If you are younger, sure you could save a lot of your money to pay for this care years later, but if you are getting older now, you couldn't save that much money (I don't think unless you are wealthy now). My policy is my ace in the hole so I can be at my house with help rather than be in a subgrade nursing home because I didn't have thousands of dollars for an upgrade nursing home. My policy will pay for a nurse to be at my house and household help if I need both at the same time.

[mojo114]

We are in our 60’s and have had relatives that have lingered in nursing home for year’s before death. The cost of that has stunned us so that is why we are pursuing the LTC insurance.
Trying to look at all options so that our loved ones remaining will not be burdened by the debt.

[littlejoebrown]

I have been a professional CFP for over 20 years. Long term care is probably the most valuable insurance that you can buy. People that say save your money and try to invest have no idea what they are talking about. In general if your Net Worth is 250K -5 million you would be a good candidate. Rich people buy it all the time because they understand the value of transferring the risk. And people with a Net Worth below 250K should not buy it because they can’t buy enough to make it worth while. Ideal age is before age 60.

[mojo114]

We are searching all professionals for answer to our questions regarding our later year’s.
Not counting or wanting the Government to do one thing for us.
Don’t even trust that a Long Term Care Insurance policy won’t be taken away from citizens that have it now, due to the ever changing Obama Care crap.

[Extremely Extreme Extremist]

Retire in Belize.

[mojo114]

Thanks for your comment. I am nervous Obama care (still be written) that will abscond citizens long term care insurance. After all, it just isn’t fair.

[mojo114]

Thought of that and other places. However, we still have jobs, house, relatives and most important grand baby that needs us. That is why we are looking to protect all we have from what may happen to us in our life.

[norwaypinesavage]

First point: My FIL paid five grand a year, for a number of years for long term care insurance for him himself and my MIL. It had a 3 month delay before starting, and the agent explained that this was because Medicare paid for the first three months.

He fell and was hospitalized, and then sent to a rehabilitation facility. The rehabilitation facility sent him to long term care when he failed to improve. Medicare would not pay for this care stating that they only paid when the patient was improving. He died before the three months was up. He received zero from the insurance policy.

Second point: I was offered long term care insurance from my employer with a guarantee of no increase in premiums. However, upon reading the fine print, I found that it also paid out a fixed monthly dollar value, as well. The insurance payout would have been appropriate as long as no inflation in costs occurred. However, it would be way too low now. (I didn't take the offer.)

Counter Point: We are continuing the payments for my MIL, since she is now of such an age that she could be needing it at any time.

[norwaypinesavage]

You need to spend more. You need to make sure that your final check to the funeral home bounces.

[mojo114]

That’s funny!

[Marcella]

My first husband died in 1989 and we had to have a nurse 24 hrs. a day for two months at home. The medical insurance we had (we were in our 50s then) covered all of it because it was a medical necessity to have a nurse. If the medical necessity had not been there, we would have had to pay the whole thing and it was so much we couldn't have done it. When I saw how much that cost, I thought of myself and bought the long term care policy then. I'm glad I did.

[mojo114]

What do you think?

[SeaHawkFan]

Very few people are in long term care for more than two years prior to passing away. Many don’t make it six months.

If I get to the point where I need around the clock care, I will choose to simply die at home with proper pain relief medication.

[Intolerant in NJ]

Good idea if you’re high net worth - say over a couple of hundred thousand - otherwise if you have to go into long term care, might as well just spend down what you have and head for Medicaid (as long as it lasts) - also the younger you purchase LTC insurance, the cheaper it is - try to buy before 60 years of age for best value......

[RightGeek]

Bump for later

[morphing libertarian]

I am 66, 11 years older than my wife and several major problems. Keeping my program as long as I can afford it.

[CSM]

Dave Ramsey has run the numbers several times on air. His analysis has shown that you MUST buy it on your 60th birthday, but not before that. Statistically speaking, it is a very slight chance that you would need it before 60, but it is almost gauranteed that you will need it sometime after retirement. The most beneficial time to buy it and maximize the cost / benefit analysis is at the age of 60.

You can do a search on daveramsey.com and find his analysis...

[CSM]

Good post and good advice. You said part of what I was thinking....

[CSM]

“Trying to look at all options so that our loved ones remaining will not be burdened by the debt.”

If the debt you incur before your passing remains in your name, then your children will not be burdened by it. Debt doesn’t get passed to anyone beyond the estate...

[Harmless Teddy Bear]

Well there is always the unexpected.

My aunt is having to deal with the fact she lost her 47 year old daughter today.

Heart attack. She was healthy, in shape and just dropped when a small defect decided to make its self known.

Insurance is to guard against the unknown risks that can pop up.