tcdigits, I would think it would depend on the long-term-care policy, what it contains.
I know my boss is paying around $6k per year for his long-term-care which will help him for two years. But what if he passes in his sleep, never to step into long-term-care. I would be concerned if the money put into the policy comes back to the heirs, or if the money stays with the insurance company.
If one feels long-term-care is the right choice for them, one has to start purchasing said policy when they are in their 40's or 50's. Otherwise, if trying to purchase a policy at 80, it could cost $10k per year, and the policy cannot be used after 6 months. And if one has certain pre-existing conditions, they may not qualify.
There is a lot to consider when purchasing long-term-care.
It definitely doesn't make sense to buy long-term care insurance if someone can qualify for Medicaid in less than a year. In my mother's case it is a big help because it's covering the full cost of the assisted-living facility. She owns three rental properties and if we had to sell them to pay for her care we would have paid about $100,000 in taxes.
In the situation my mother was in, LTC insurance wasn’t worth having. It simply dragged out the time by a few months in the nursing home before she qualified for Medicaid. My mother was instantly, completely physically disabled in every way by a stroke, a condition that lasted for nearly four years. The initial care she required was paid for was paid by her SS and the LTC insurance, along with some private pay along the way. But in less than a year the maximum benefit of the LTC insurance had been met and it ran out, had she not had it at all she’d have had the exact same care and qualified for Medicaid sooner. Her care on private pay with insurance and on Medicaid was the exact same, so in our case the premiums for LTC weren’t money well spent
I know my boss is paying around $6k per year for his long-term-care which will help him for two years. But what if he passes in his sleep, never to step into long-term-care. I would be concerned if the money put into the policy comes back to the heirs, or if the money stays with the insurance company.
If one feels long-term-care is the right choice for them, one has to start purchasing said policy when they are in their 40's or 50's. Otherwise, if trying to purchase a policy at 80, it could cost $10k per year, and the policy cannot be used after 6 months. And if one has certain pre-existing conditions, they may not qualify.
There is a lot to consider when purchasing long-term-care.