Is my mom eligible for Long Term Care Insurance? - AgingCare.com

Is my mom eligible for Long Term Care Insurance?

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My mom is 93 years old. Currently in respite care. We are looking to place mom in a long term facility. Money is dwindling down & my dad is getting worried.

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I'm sorry to hear about your great aunt's policy, countrymouse. My mother's policy pays for most of her assisted living facility. If I recall correctly, the facility is about $6,000 per month and her policy pays about $4,500. My friend, the nursing home administrator, helped us figure out how much to buy. She made sure we bought an inflation rider to keep the benefits growing every year so that we don't end up in a situation like your great aunt did. We didn't use a financial advisor. We met with one several years back and she told us we were candidates for the insurance based upon our assets and projected pensions and social security but we didn't do anything about it until recently. We did interview a few different "brokers" to try to get the best deal and we believe we did.
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Naturally not; but that is why it is better to pay a financial advisor a fee for advice, rather than go to one whose commission is a closed book to you. Brokers paid on commission are incentivised to sell the most profitable policy whether or not it is, objectively, the best suited to their clients' needs. Moreover, they may be restricted in terms of what financial products they're able to offer, depending on how closely linked they are to insurers. And most important of all: their customer base comprises mainly worried, elderly people who have never done this before and can't possibly know what lies ahead. Not every brand in the market is a shark but these waters are most certainly thickly infested.

My great aunt took out cover with a very respectable provider indeed. Twenty years later it paid approximately one fifth of her care home fees. Well! - she could have taken out five times as much cover, or she could have done what she did do and let her bank invest the money for her instead. What you lose on the swings...

To be fair: properly regulatedLTC policies are not pyramid schemes (or not nearly to the same extent as governmental funding is, anyway). Premium income is invested (which is why you *do* care what the stock market does - that's your pension, your health insurance, your mortgage cover at stake); and in addition risk is laid off to reinsurers.
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It never crossed my mind to ask our state farm agent how much commission he makes on our home and auto insurance. I'm sure the woman who sold us our ltc policies made a commission too. I don't expect anyone to work for free do you?
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Well, I definitely don't want to rely on Medicaid. And I'm not about to draw down our retirement accounts if DH or I need care, so I guess I'll "take my chances" with our LTC insurance policies. Funny, right after reading your post, I found an article by a home care agency that processes long-term care claims. I printed it out and filed it with our policies to remind us what to do when we file a claim. Here's a link to that article in case you're interested in learning more about it:

amadaseniorcare.com/blog/2018/04/read-this-before-you-file-your-long-term-care-insurance-claim/
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MrsWright - what billing office told me was that LTC polices got to be just too cumbersome paperwork wise to deal with. LTC was too much staff time disproportionately for # of residents. That the Genworth policies had HQ with staffed personnel that could deal with issues, move claims along, respond in decent timeframe to submitted paperwork. But among the other various LTC insurers there was always ALWAYS something else needed for payment to get cleared. Like wanting details on staffing ratios and education/ certification on caregivers as the policy was tied to care being done by an RN.... and things often lost....or done via snail mail. The vibe I got was that for some LTC the MO was to do whatever to delay payment. This NH was part of a small chain & all stopped accepting LTC policies for payment. They could easily fill beds from Medicaid, Medicare rehab & private pay.

It reminded of dealing with insurance post Hurricane Katrina, whatever an insurance could do to delay payment was thrown at you.
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@igloo,
My mother has a policy and it's paying for most of the cost of her care in an assisted living facility. The policy picks up most of the expenses and her social security check makes up the difference. Do you know why
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@igloo,
That is strange that your mother's nursing home did not accept long-term care policies. One of my sorority sisters is an administrator at a nursing home and has been for years. She pestered me until I bought a policy for me and DH. She helped me pick it out based upon her experience with the companies. She said some companies paid faster than others.
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The Long-Term Care Partnership Program is a Federally-supported, state-operated initiative that allows individuals who purchase a qualified long term care insurance policy or coverage to protect a portion of their assets that they would typically need to spend down prior to qualifying for Medicaid coverage.
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Reply to BarbBrooklyn
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LTCshop- your a broker / Agent aren’t you?
So what’s your commission on “partnership” type of policies you often tout?
And what’s the renewing commission schedule after the initial?

NeedHelp - as others have said, at age 93 she is outside of the actuarial tables that are used for risk. And not just for insurance but for other financials - like a traditional mortgage. 

Regarding LTC policies, my mom’s NH did NOT & would NOT accept any LTC policies. On a very defined sign in entry area and at nurses stations: Medicare, Medicaid or private pay only. I asked billing why and he said that for them (NH part of a small group of NHs) dealing with LTC insurance was way way too cumbersome. That each insurer had its own criteria and paperwork submitted to be paid; and there was a lot of foot dragging with insurers wanting additional information. The NH could easily fill their beds between Medicaid residents (& the state paid in real time), Medicare rehab stays and private pay residents, so no need to ever deal with LTC policies. 

I have no idea IF this is a one-off or a trend. But if it is a trend then LTC policies will be good only for those who can stay in their home AND have family to provide all the other support when LTC personnel not there. The well spouse likely is the same age range & has their own health / aging issues, so family have to have the time & ability to caregive and plus deal with the household. If the elder gets to the point of 24/7 oversight needed no LTC policy will ever pay that coverage. 
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I suspect the companies use the premiums they collect to pay all claims.
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