I am 57. Would it be wise to buy a Long Term Care policy for the future?

I looked into a LTC Policy last month. Now I am in Canada and 52, so a couple differences. My parents are 84 and 89. Mum could easily pass for 65, is active independent and has no health issues. Dad has a stroke 3 years ago, has had a remarkable recovery (here all the costs related to the stroke are covered by our Provincial Health Insurance, hospital, rehab. etc), Dad lives with my brother most the year and my son is with him over the summer. He still drives, manages his adls, but is slipping a bit mentally.

First off it is expensive, for lifetime coverage and a 180 day waiting period I am looking at $210.00 per month with no change in the rates for 5 years. After 10 years I can get a paid up policy for a reduced premium.

Secondly, according the my insurance agent, there are far fewer companies offering it now than were 10 years ago. Modern medicine means people are living longer, but needing far more care than ever before.

If I am as healthy as Mum, and I saved the money on my own, I would have almost $200,000 saved up by age 84, at 5% interest. If I die sooner, that money would be part of my estate.

The value of my home at today's LTC rates would cover would cover 54 months of care. If I assume that house values and LTC rates will increase at the same rate, then I would be covered for quite a while in care.

Canada allows Medical Assistance in Dying. Currently I cannot give permission ahead of time to die if I become demented, but I have made my wishes known. The laws may change in the future. Luckily, dementia does not run in my family, nor does cancer, except skin cancer.

I will be meeting with my agent later this month to discuss this further, but I am leaning towards self funding. I am not one who feels I have to leave anything to the kids. I have given them a lifetime of memories. I also do not expect my kids to in any way be responsible for my care. I do not have a spouse.

JD - at 57 your still in the age range to get a decent rate. But you might want to look at hybrid type of life insurance/ LTC insurance plan. These usually need a big chuck of $ to put into force initially but gives you oodles more flexibility as it’s life insurance BUT you can take some of the $ instead to use for LTC insurers payment. My BIL did one from moving enough $$ from investments to buy the insurance. These don’t seem to work for monthly type of insurance policy but need upfront larger sum paid to place in force and then afterwards a monthly or quarterly or semiannually premium. Usually it’s a financial advisor (they have insurance licenses) who does these as it’s the $ in your portfolio that gets moved to buy the policy.

So if you get hit by a bus at 75, it pays beneficiary like a traditional life insurance. But you get dementia at 85 & need a facility, it can draw for that instead. Remember that most policies have a required period of self pay before the LTC kicks in, you imo want that as short as possible (like 30 days not 120 days) and you want it with inflation index & this automatically done (so if cost go up, the daily payable rate too goes up). And that payment is good for BOTH inhome AND facility care.

You know I remember your posts. Your mom’s the one whose hubs was in a NH & all his monthly income but $45 went to your mom as her Community Spouse Resouce Allowance, right? Your dads Medicaid copay was just $45 a mo.... $45 a mo! Plus he got his personal needs allowance. Your Mom still alive & being a pill?
You know in many ways your fortunate in that you’ve been through oh so much so know realistically what the costs are both financially and emotionally for family that’s DPOA & support. Let us know what you find out what your options are as we all learn from each other. Good luck!

Yes, at your age it would be wise. My mother and my dad benefited greatly from theirs.