Just wondering if anyone has any personal experience with the Long Term Care Insurance? I'm considering buying it for myself so that my two children will have an additional resource should I live long enough to need daily care help.
The hard part is over.
I'm matching you with one of our specialists who will be calling you in the next few minutes.
Just compare the costs and determine whether it is worth it based on the odds and whether you think you might be able to remain at home with a caregiver.
So, this is something to think about. Possibly a financial advisor (fiduciary person) would be able to help you with a financial decision. Looking into annuties, stock with dividends, etc. something the will generate long term income for you.
I'm sure the cost of LTC will increase and we should be prepared if we can. The bad thing with LTC insurance is if you pass away no one gets the dollars that was put in. If you have annuities, stocks, or any other investments you are able to leave that to your family. It's a big decision to make and I think it's a hard one that has to be thought out carefully, who knows what's the right decision. It's like Russian roulette. Many decisions go wrong or change. We always hope for the best
Wishing you blessings on a very hard decision.
The policy paid out much more than my Aunt paid in and preserved her capitol. She was in assisted living and memory care for eight years.
Consider visiting some several assisted living and nursing homes in your area and ask about costs and amenities. That way you'll have a handle on the costs where you will probably be when its your turn for care.
BTW, the older you get, your starting and continuing costs for the insurance will increase. Start as early as you can. I think you'll be glad you did!
You probably wouldn't want to live in a state home. They are overcrowded, noisy and generally unattractive. The food is often institutional food and there are few other amenities, although in some cases, there may be a few like updated food services. Vista one or two and you'll see what I mean.
If you're on Medical, you can get help from the state but will have to sign over your home or anything else of value. Even then, most of the nicer care homes won't deal with Medical so you might not like where you end up.
These are just things to consider. If I had it to do over again, I'd get the insurance.
When long-term care ins. started 30+ years ago, companies saw it as a great way to create new client/revenue base. They did not expect the hundreds of thousands of dementia patients living many years & needing care, & many of whom had long term-care policies.
So long-term care is now a losing proposition for many companies, who have cut back on availability of policies & increasing costs. But if you need it, it can be a blessing in avoiding backruptcy, & in paying for in-home, hands-on, personal care help, or care in a facility.
Be very careful in reading what is covered, for how much, & for how long.
I am full-time retired RN caregiver.
i pay over $1300 a month for both of us and prices of course keep going up. but facilities are much higher and i do not want my daughter to use her money for care when i can help provide for ourselves.
I also want to be able to chose where we live and when we were younger there was no way to know about accidents and strokes and how many years and how much care would be needed.
Something to consider: Statistics indicate an average time a person spends in a Long Term Care is two years. How much is the LTC Insurance policy? What interest rate can you get with a savings, CD's or other financial product if it is set aside and designated for LTC?
My son will be taken care of either way.
After putting a pencil to paper when I was younger the returns on investments (over 30 yrs) FAR out returned anything close to what even the most expensive LTC policy could return. You should price policies and see what they provided, like home care or some offer unused partial balances at certain older age.
I would deffiently check out Long Term Care Insurance, if it let you stay in your own Home, having Caregivers care for you.
My husband purchased LT policy in 1990’s for both of us. We each pay about $100 per quarter for policy that pays about $150 per day. We declined the inflation increase a number of years ago. With lower pay rate we feel we have hedged our risk. We may never need LT care but if we do policy will help with costs.
If you are considering a policy remember not every facility accepts Medicaid (Medicare doesn’t cover LT care). At the rate the government is spending money who knows how much Medicaid will pay in the future. LT care policy will help us stay a better facility if we need it.
If you do your taxes you can claim it in SCH A. I do taxes that is how I know this. And certain states take medical insurances off of the taxes too like the state of Iowa.
It will give your children and you peace of mind when it comes to where you can go when its time
The application process for home care went smoothly: there was a form to fill out with her doctor and then a meeting with someone from the company who confirmed that she needed help with two ADLs for home care.
The plan covers three years of facility care at the stated daily benefit amount, or six years of home care at 50% of the DBA. She doesn't use the maximum amount yet, so it could work out to be more like ten years. It is a "partnership" policy so if the policy runs out and she eventually goes on Medicaid, she would be allowed to keep some $350,000+ in assets that would otherwise have to be spent down.
The 90 day deductible period was calendar days, so she didn't have to have service every day to make them count.
She was able to designate someone to be notified if she stopped paying premiums so the policy wouldn't be inadvertently cancelled.
I like that it gives her "a license to spend" so that she doesn't do without care because she doesn't want to be a bother. It's already paid for, so why not use it?
I acquired a similar policy myself. The rates have gone up several times, but there's no way I could get anything similar for less than four times the price at my current age, assuming I could still qualify for coverage.
Companies have changed the policies.
Warnings are issued online.
You pay in, and want to beg to get the benefits often denied for some reason or another?
No longer considered a good investment.
If you want to invest, buy an assisted living 6 bed home.
How often does this happen? Mom never got any benefit from the policy. So be careful if you decide to purchase that someone responsible is in charge of making sure the payments are made. A family member was notified of the non-payment and decided to do nothing.
There was a 90 day period that you private pay and then it kicked in. She did up her "per day" a couple of times over the years.
Read the contract, hers said she had to need assistance with a certain number of ADLs or IDLs or as with my mother diagnosed with dementia. The company sent a person to assess her needs when we reached out to make a claim. There was other requirements as to the facility.
There was some paperwork to do, but not too bad. The facility debits my mom's bank account, and then sends the invoice to LTC company, which then deposits her payment directly into her bank account.
My mom's Memory Care costs $7100, monthly. LTC pays $6900 of that (her max $/day). Based on current costs her LTC will pay about 5 years before she hits max payout. We just sold her house and she has her SSecurity and she has some IRA retirement savings to private pay after that if necessary. She's 91, so it definitely helped that she didn't need it until age 89.
My husband and I both have LTC policies. It definitely has helped to stretch my mom's retirement dollars.
Was it worth it? I don't know. She took it out over 20 years ago, and it cost her about $2000/per year in the beginning. Over the years, however, it more than tripled in costs; the year she died, she paid over $6,000.
There was a 90 day "deductible", meaning she would have to private pay the first 90 days in a facility.
The policy had provisions for coverage of in-home care; also up to 21 days per year for respite care.
However, as with most insurance there were "catches". Respite care, for example. When mom went into respite care the year before she passed, we did the paperwork for her to be reimbursed, since she private paid the cost. I was still going through the process for reimbursement when she passed. The policy paid 2/3 of the cost - because, even though they pay for up to 21 days, there is a maximum they will pay each month. Since the entire 21 days were in the same month, and the cost exceeded that maximum, they wouldn't pay the full amount.
A lot of the payment schedules were like that: they pay "up to X" amount per day, but there is a maximum they will pay monthly; so that daily amount is not really true.
I recently purchased a policy similar to Grandma1954. It was very, very expensive; I paid it in one payment. It will pay a benefit to my survivors if I never go into care; my mom's policy had nothing like that. She was in the fortunate position of being able to afford it. However, I don't think she ever really understood that the policy would not have covered all of the expenses of a NH. I think she though it was rather more like an auto insurance policy - once you meet your deductible, (90 days self-pay) the policy picks up the rest, which would not have been the case.
I understand that my policy will likely cover only about half of what costs are projected to be, and I/we will have to cover the rest. I don't know of any policy that guarantees full coverage of costs.
You're the only one who can decide if it's "worth it", however. If you have a financial advisor - NOT an insurance broker, whose job it is to sell you insurance - that's a question better put to them. If you don't have a financial advisor, you might want to talk to your CPA about it, perhaps (s)he can put you in touch with someone who might be able to give you guidance.
Also, much like life insurance, there is no guarantee that you will qualify for a policy, even if you have the financial means to get one. My husband was denied due to pre-existing conditions that make it slightly more likely that he will need care in a facility.
Remember, these companies are in the business to make money. They make money by not paying out claims, so it's not really in their best interests to sell policies to people who will likely need to use them, or to make things easy for you when it comes to paying out claims. I had to jump through a lot of hoops to get any sort of reimbursement from Genworth; my mom paid more money over the years into that policy than they paid out for that one stint in respite care. If you're going to get a policy, I would make sure you sit down with whomever you think your POA/advocate is going to be once you get to the point of needing a facility, and make sure they understand everything included in the policy; you might not be in the position to be dealing with said insurance company once that time comes. My mom sure wasn't.