Do I need LTC insurance and if so, what is a reasonable cost (percentage) of my income? - AgingCare.com

Do I need LTC insurance and if so, what is a reasonable cost (percentage) of my income?

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I am 63, good health, widower, just retired, own home, zero debt, lifetime annual income $104k before taxes (ss & pension combined), $40 in savings, about $915k in tax deferred savings and my funeral arrangements all prepaid. My CFP recommends a LTC policy that guarantees $10k per month up to $500k and a death benefit of $500k to my heirs if I don't use it (or less the amount paid out if I do). It costs about $1100 per month or about 12.7% of my income. I live simple, don't care to travel or socialize so my spending needs are minimal. Do I need this insurance and is it a good deal? I'd rather just save the money and invest it elsewhere but he says the policy is good because it is not taxed to my heirs?

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Isn't it important for readers of this forum to be given correct information?
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Respecting KatieKate's right to post her own personal opinion from experience here without accusations that her understanding is severely flawed.
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@sendhelp,

The "quote" that Katiekate received was not for a long-term care insurance policy. She was talking about a universal life insurance policy that has a "long-term care rider". She said it was "long term care insurance" but it's not. I was simply explaining that she was not accurately describing long-term care insurance.

Secondly, she stated that traditional long-term care insurance (like her mother has) is not available today. That's completely false. Over 13 different insurance companies sell traditional long-term care insurance.
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Respecting Katiekate's right to post her own opinion from personal experience here.
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Stay far away from Allstate! My experience thus far is very negative. They are not following the contract verbiage , denying coverage for Assisted Living Facility, although meets all criteria. I was told verbally five times the facility we picked was fine. Reason for denial, "changed their mind"!!
Research very carefully the company you choose, you don't want to pay in premiums to be denied on a whim.
#allstatestinks
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@Katiekate,
You state, "BUT! They do not write these policies any more."

Long-term care insurance is available for sale in all 50 states. Over 13 different companies sell long-term care insurance. Your understanding of how these policies work is severely flawed.
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Fortunately most home care agencies or long-term care facilities today will process your long-term care insurance claim for free.
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@Katiekat,
What you have described is NOT long-term care insurance. That's not how long-term care insurance works. Some agent showed you a life insurance policy that would allow for some of the death benefit to be used for long-term care. Those policies are grossly overpriced compared to true long term care insurance.
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Just a postscript
My earlier reply had some funny math
$1,100 a month at 3% for 20 years would get you ~$360,000
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Thanks to everyone for their comments. As a matter of fact, my (former) CFP is also an insurance agent, so I'm sure that is why he pushed for the life insurance with a LTC rider.
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