LONG TERM CARE INSURANCE?

August 24, 2005 | SELF

[HateBill]

I have been considering purchasing long-term care insurance for myself as a result of seeing my father's need for 24 hour private duty nurses. The cost of this plus the assisted living facility for him is very high ($150,000/year), but he has a very generous pension (no wonder New York City is always in danger of becoming bankrupt) and also gets half of my deceased mother's pension and social security. Needless to say, I can't count on these sources, although I have been very careful and put money in 401(k), IRA, non-retirement investments, etc.

Do any freepers have experience with long-term care insurance and are able to offer some pointers?

Thanks. (I haven't posted a vanity in almost three years, so please forgive me!)

[Rodney King]

My husband and I have no children. I had thought of a reverse mortgage in our later years. Would that be a good idea?

If you don't care to leave money to anybody, then that is an excellent way to get cash and still stay in the same house. The analysis that you would want to do is what rate you can get paid on the reverse mortgage, versus selling the house, investing the money, and renting.

[yetidog]

Given my personal circumstances, I would not do it. It may work for you. Everyone's situation is different financially, socially and psychologically. That is why I get a little out of joint with financial products advertising; they start with the assumption that eveyone can benefit from their product which is patently not the case. One of things that I do like (and there is much to dislike)about popular financial personalities like Dave Edwards, Susie Orman and the like is that they at least tend to provide answers or suggestions in the specific...and after they have asked some questions concerning income, net worth, risk tolerance etc.

[BlueAngel]

My mother who is 87, got Long Term Care Ins. at 80 yrs old. She pays $6,100 a year. Of course, the younger you are when you get it, the cheaper it is. My brother and I use the interest she makes off of a CD to pay for it. It gives her and us a little peace of mind.

The good thing with hers is, say she breaks a leg and needs to go to a care facility for 2 months, she can and then go back home. I believe she gets 6 or 7 years (total) of care. Be it all at once or in and out. It is a gamble. I hope I made myself clear.

[Kevin OMalley]

BFLR = Bump for later reading.

[Hildy]

GE has a good plan. It is a very good thing, if you plan for the long term and have assets to protect.

[Doe Eyes]

Democrat solution. Take all his assets and money. Dump him on the state and make someone else pay for his care. Attend congressional meetings demanding more money be put in the budget for this kind of thing. Accuse Republicans of being mean spirited..

Just out of curiosity, do you have the Republican solution that may actually help this poster?

[OldPossum]

Finally, ....you can always do what many, many Americans do....during the years leading up to your infirmity, gift all your money to your kids and when it is time to enter the nursing home, you can access Medicaid and let all of us pay for your care.

Afterwards you may be in for a rude surprise. It's not necessarily a free ride since Medicaid, which pays the tariff, can, after your passing, come back for any assets (including your house if your spouse predeceases you). As for that money you might plan to gift away, don't be surprised if they track it down and demand it, too.

Also, wouldn't you feel just a titsy bit guilty doing what you seem to be suggesting? Seems to me to fail the morality test.

And yes, my wife and I have long-term care insurance and have had for some years now. We believe in paying our own tariff.

[irish guard]

Oh, I konw the government comes after all your assets if you had a stay on Medicaid...and as for my suggestion...it was all tongue in cheek. Not the way I was raised and I think if you go back and reread my comment, I followed it with an "UGLY BUT TRUE" comment.....Sad that poeple do it, but there are all kinds out there.

[larryjohnson]

I searched before I asked the same question and found you. You havnt posted since Nov. I found this link through my military Tricare and have started doing other search thru friends. Let me know if you settled your search. I will now read the rest of the posts.
--
Federal Long Term Care Insurance Program Home Page--

http://www.opm.gov/insure/ltc/index.asp

[LADYAK]

Good question. We got ours through AARP in early 50's it was better then our state policy that we could pick up after retirement. We got the waiting period of 30 days...cheaper policies have a waiting period of 90 days. It means that you would have to pickup he cost for those periods of time before it kicks in....ours is automatically deducted monthly from our account and like others say the younger you are the cheaper the policy. Who knows if you will need it, but if you do you have that cushion...this kind of care can put you in the poor house quickly if you don't have it. Go to Suzie Orman's site and see what she has to say on the subject. Good luck.