After 50 plus years of smoking, I have emphasema ... just a matter of time.
https://www.google.com/#q=actuarial+table+for+long+term+care+annuities
I think you’ll find that the price starts low but gets higher and higher so that you’ve dropped it when you’re most likely to need it. That’s what we found when we ran the numbers for my sister.
Unless you have special circumstances I’d say invest the money and rely on the sale of the investment to cushion your final days.
Long Term Care is an excellent form of insurance. The odds are much greater that someone will make a claim on an LTC policy than a Life Insurance policy.
Save the money and invest and then pay for it yourself. First of all you only get a certain amount per month from the insurance company and then you pay the rest.......they really don’t take into account inflation. Invest your own money....everyone wants us to for Social Security. Why should this be any different. You will be better off saving and then paying for it out of pocket.
CT has a special program ... allows u to protect more assets
www.connecticutpartnershiponly.com
much better value (30% less premium) if you buy thru an employer ... could be your spouses employer or even children or son=in-law employer. yes.
I've been everywhere I want to go, done everything I want to do, no spouse, no dependents, no pets, no houseplants, no debt, no real estate, and by the time that happens, no assets - I hope.
2 out of 3 people over the age of 65 will require some type of custodial care in their lifetime. Last year I purchased an IUL which can be used for long term care. It is like Clint Eastwood in Dirty Harry, how lucky do you think you will be? In my parents case they had long term policies, and passed away without using them. My in-laws did not have policies, my father in-law would have not used it. My mother in-law will soon run out of medicare supplement nursing home coverage and will be paying out of pocket.
Ask yourself if you'd invest the money in this market, knowing what you know about the trillion dollar a year Fed "stimulus."
Medicaid will not pay for long-term care until you are essentially bankrupt. I won't put that risk on my wife, so we have long-term care policies.
You get a substantial discount if both spouses get a policy at the same time. If you get it at an earlier age, while you are still healthy, the premium will be much affordable. If you wait until you are sick, it will be much more difficult -- if not almost impossible.
Make sure you get an inflation factor. And, if your state has a Medicaid partnership program, Medicaid will pick up the remaining expenses your long-term care policy doesn't cover. But, the policy must meet certain criteria.
I looked at it and so did a friend
I am putting my money into my kids, one or two in particular who will inherit the bulk of my estate in return for taking care of me. I am an old parent and they are young kids and it will be a benefit to them.
My friend would be pounding 1500 a month into the policy, she has a daughter who will help her out. So she is putting the money towards the daughter and her family.
Why pay corporations if you don’t have to?
1. On the one hand, you might want to get it while you can because I understand some carriers are slowly getting out of the LTC insurance business.
2. I have serious concerns about the viability of the whole LTC insurance industry, since I expect that claims related to long-term care will overwhelm carriers just like Social Security and Medicare are facing insolvency.
also, in CT, married couples:
spouse who remains in community, can keep house, over $100,000 in assets, plus substantial income. So some long term care planning must be done first ... The widowed survivor ultimately faces the real risk as they must bankrupt themselves ...
the 60 months of a LTC policy allow one to re-arrange assets to children and trusts for surviving spouse, etc. You still have to get things out of your name in anticipation of the policy running out of benefits.
$300 per day, $150 for assisted living, works well in CT.
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.
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.
Retire in Belize.
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.
What do you think?
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.
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......
Bump for later