annajohnhardy Asked November 2010

What are my long-term care insurance payment options?

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EXPERT Carol Bradley Bursack Nov 2010
That depends on whether you have coverage now or not. Also, if you don't have coverage, it will depend on your age and physical condition.

Try calling insurance agents who represent more than one company. Get several opinions. You may even want to clear you choice through your state insurance office.

LTC insurance has improved a lot over the years, but it's still tricky. Move ahead with advice from experts and look at all views.
Carol
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EXPERT Ralph Robbins Nov 2010
The problem with long-term care insurance is that it is very expensive. I recommend that one not spend more than 6% of disposable income on long-term care insurance.

The issue is further complicated by the fact that long-term care insurance companies have not been able to keep premiums to existing policyholders stable over the past 20 years. (John Hancock, one of the preeminent carriers, just announced a 40% rate increase to most of its existing policyholders.)

This means that what you initially contract for in terms of benefits and premiums will not likely be what exists at claim time many years down the road.

If you are going to purchase, consider carefully benefit vs. premium. Don't over-insure.

Lastly, DO NOT PURCHASE ANYTHING OTHER THAN A "PARTNERSHIP" POLICY!

Partnership policies will protect your assets and allow you to qualify for Medicaid after policy benefits are exhausted without having to spend down.
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steviegirl Feb 2012
Do LTCs pay relatives to provide care? My mom's financial planner who is not and eldercare expert by the way says yes but I've heard no. I would think no because of liablity concerns. I'd really like to know the answer to this.
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Payment options for long-term care insurance depends on the policy your chose. If you purchased a traditional long-term care insurance, infolongtermcare.org stated that you should be able to pay the monthly premiums until the need for care arises. Paying it via auto-withdrawal is a good idea so you are sure that you are religiously paying your premiums and avoid having your policy lapse due to non-payment. But it you get a combination product like the hybrid long-term care insurance, you must be able to pay it on a lump sum basis. You can pay your long-term care insurance depending on your preference and finances, just make sure to keep it and avoid cancelling your policy because you will be wasting money if you don't keep it.
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I don't know if this is still available, but my mother bought a rider on her policy that once she was in the nursing home for I think 3 months or so, the premiums were not longer charged which is a great savings each year. She bought her policy back in 1996 and since starting to use it in May of 2009, she has more than received back in payments what she paid in premiums. Also, she wisely put the premiums on auto-withdrawal.
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Consumers today have variety of payment options such as long term care insurance, government programs and combination products. Long term care insurance is a bit pricey so it is recommended to purchase early while you're still young and healthy, avail discounts and by creating a smaller policy. Long term care insurance costs can go around $1,000 to $7,000 annually which is still costly for some people. By exploring your options first, you'll surely find a policy that is within your budget and can satisfy your future care needs.
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Carol shared a helpful tip that can help consumers cut their premiums. You should seek the help of a company that can provide you with multiple quotes from different carriers. Since long-term care insurance is expensive, consumers are encouraged to compare quotes first before purchasing. This gives you the liberty to compare costs, benefits, discounts and policies from one company to another.

Long term care insurance costs are expensive in nature and by exploring your options, you can find an affordable policy that can satisfy your future care needs.
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Nicole07 Aug 2014
Traditional tong-term care insurance are payable via monthly premiums. Just make sure that you get a policy that suits your preference and needs only, avoid over-insuring and do not buy a policy that exceeds what you can afford or you will end up dropping your policy which is a total waste of money. Experts recommends that you shop for long-term care insurance quotes from top insurance providers. Prices vary widely depending on the company so it would be advisable to get different quotes from different companies, compare them, talk to an expert and choose the best one. Check out these couple of resources that provides free ltci quotes from reputable companies:
http://www.infolongtermcare.org/get-free-ltci-quote/
http://www.aaltci.org/long-term-care-insurance/free-quote/
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HelperMom Dec 2015
I'm curious about the advice not to over-insure with LTC insurance. Our family's experience has been that the (very good) policy our parents paid into for more than twenty years is barely adequate to pay for their needs. I guess it depends on how you picture your elder years, but I can tell you, I never expected my once-healthy, active parents to need the level of care they need now! So my advice would be, don't over-insure OR under-insure. And look at your own family history for clues - one thing that I think my folks didn't take into account when choosing an insurance policy, was the hereditary nature of Alzheimer's disease, since my grandmother had it and now my dad has it too. (But he never, ever expected to get it, because he was so health-conscious. He didn't think about the genetics, or if he did, I'm sure he thought he could beat the odds.)
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sadiemae Sep 2016
my premium will jump over $500 soon--that will make it now a payment of over $900 monthly--anyway, I will have to lower options in benefits. been paying premiums since 2003 and when it jumped to $400, I was surprised but this is terrible. I was wondering if my kids get any of this money after I kick the bucket ??
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