Posted on 04/09/2013 7:44:55 AM PDT by DCBryan1
My wife and I are meeting with NW Mutual sales guy in a few hours.
I'm 42 good health, no issues. Wife 37, great health. 2 small creepers under 2. Our parents are old.
I want to buy LTC sine I don't want to burden my kids or my parents assets in case something happens.
My wife is reluctant because of the chaos of Obamacare and the uncertainty of the healthcare industry.
Bookmark to read comments.
My In-laws are in their late 80s.
Plus: We are young and this is affordable.
The insurance companies have started losing money on these policies, and are using every trick in the book to wiggle out of paying. Be careful about what you buy.
I agree with your wife.
You’re agreeing with the wrong guy. :)
Wifey and I've had LTC policies with Met Life for probably 15 years. A stroke would wipe you out financially in lightning fast time should you end up in "the home". These policies pay only a certain amount per day or month, and generally don't come close to covering the full costs.
It's really a crapshoot.
Dave Ramsey’s advice is to purchase long-term care insurance the day you turn 60, but not before. The odds are just too low that you would need it before then. I know there is plenty of anecdotal evidence to the contrary, but he has done the research. However, always have a long-term disability plan in place.
Since she’s a bean counter, I’d say it’s likely she sees it as a simple financial calculation without any emotion attached. I’d trust that view because you’ll hear the NW Mutual sales guy appeal to emotion in the pitch, along with some numbers to make it seem like he’s appealing to reason. My mom bought one of these policies, it ended up the subject of a successful class action suit that resulted in the lawyers being the winners.
Still working on the first cup of coffee. OTH, the bread machine is going and the chops for dinner are marinating.
Dave Ramsey’s advice is to purchase long-term care insurance the day you turn 60, but not before. The odds are just too low that you would need it before then. I know there is plenty of anecdotal evidence to the contrary, but he has done the research. However, always have a long-term disability plan in place.
This is it. DITTO
Smart idea LTC! Policies differ, shop and compare. Get a good inflation protection provision, especially since you’re young. Also guaranteed renewability terms. Check its definitions of what’s required to qualify for benefits (just how broken down do you have to be). Etc. If the cost gets tooo high with all the good provisions then consider a somewhat longer elim period (like, they don’t pay first 90 days of care?). This can substantially lower your premium. You self-insure first short period of care and they pick up the bills after that. It is the long term that bankrupts ya anyway. Best, fhc
Love Dave Ramsey!
As the number of seniors in our aging society increases, there will be a growing disinclination among younger taxpayers to pay through the nose to just delay the inevitable for days, weeks and months. So, increasingly, the watchword will be "pay as you go." If you want to delay your inevitable death, don't count on taxpayers - you will be expected to pay the costs of delaying your inevitable death and when you stop paying, it will be time for you to go. Thus, "pay as you go" or, if you prefer, "pay or you go."
Long term care insurance might keep you around a bit longer than a taxpayer financed plan, but keep in mind that insurance companies also watch their bottom line and they don't worry much about you suing them after you're "gone."
It also advertised "no increase in premiums". That also means "no increase in coverage". He had this policy for a number years, so the coverage was frozen at the value when it was sold. Medical inflation made that nearly useless after a few years. His policy was limited to a fixed amount, around $100K. His costs were about $10K per month, so it would have only covered 10 months, or so, even if it covered anything.
So beware.
So few new cures, hundreds of new expensive symptomatic relief's. Death is big business in America now.
Bryan, the fact that you are young and this is affordable is the key to the decision.
A co-worker and I were discussing this last week. She’s a CPA. She and her husband bought their LTC plans while open-ended indefinite term policies were still available. Her kids are in their twenties and immensely relieved that the burden of care will not fall on them.
Even with state (AZ) assistance, care for my late mother nearly bankrupted my sister. Mom needed in-home skilled nursing (8-10 hrs/day) for three years.
Statistically, you sould wait until you are 60. However, at that time it is a MUST buy. Here’s a good article for you:
http://www.daveramsey.com/article/who-needs-long-term-care-insurance/lifeandmoney_insurance/
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