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Old 11-08-2011, 09:47 AM   #81
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Simply put, until I trust that insurers can properly price the product so that they don't have to keep raising "locked in" premiums because they mispriced it, I'll pass. They market the "buy it while you're young and lock in the lowest rates" thing, but then they often raise the premiums several times, often by very large chunks, before you reach the age where you're more likely to need it.
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Old 11-08-2011, 10:41 AM   #82
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Simply put, until I trust that insurers can properly price the product so that they don't have to keep raising "locked in" premiums because they mispriced it, I'll pass. They market the "buy it while you're young and lock in the lowest rates" thing, but then they often raise the premiums several times, often by very large chunks, before you reach the age where you're more likely to need it.
One thing I have not seen mentioned on this thread is that insurers have assumed a 45 year old person as a beginning pricing model. Also, like I said, there are a couple companies that will take a lump sum and leverage that based on age. No medical underwriting, just a cognitive phone interview. A 75 year old is about 3 times premium, a 55 year old could be as much as 5 times lump sum premium. No inflation or COLA increase, but for some people it is an option, YMMV........
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Old 11-08-2011, 03:31 PM   #83
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One thing I have not seen mentioned on this thread is that insurers have assumed a 45 year old person as a beginning pricing model. Also, like I said, there are a couple companies that will take a lump sum and leverage that based on age. No medical underwriting, just a cognitive phone interview. A 75 year old is about 3 times premium, a 55 year old could be as much as 5 times lump sum premium. No inflation or COLA increase, but for some people it is an option, YMMV........

Which companies provide that sort of lump sum LTC insurance? Are you describing a life insurance policy with an LTC rider?
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Old 11-08-2011, 08:38 PM   #84
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Which companies provide that sort of lump sum LTC insurance? Are you describing a life insurance policy with an LTC rider?
Yes, universal life with an LTC rider. It is lump sum, but you can get your principal back at anytime.
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Old 11-25-2011, 02:42 PM   #85
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There are some posts that touch on this but, I'd like to hear more opinions.

Why not self insure via establishing guaranteed income streams that are adequate to cover LTC? For example, if LTC is $5k/mo, why not use SS + pension (if available) + Annuity to cover any remaining gap to establish >=$5k/mo income?

This also dove tales well with the approach of establishing guaranteed income streams for "essential" expenses and retaining a portfolio for "discretionary" expenses.

The pros (no insurance company to hassle with, you don't pay for something you may not need, you get income from the $$$ you 'give up') seem to outweigh the cons (flip side of pros above, risk of increasing costs via premium increases).

Thoughts?
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Old 11-26-2011, 07:14 AM   #86
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Why not self insure via establishing guaranteed income streams that are adequate to cover LTC? For example, if LTC is $5k/mo, why not use SS + pension (if available) + Annuity to cover any remaining gap to establish >=$5k/mo income?

Thoughts?
\Most people do, although it would be hard to self insure against bad scenarios without setting aside a lot of money. Nursing care can cost $60k/yr+ and could go on for years or decades. You can insure for a shorter (much more likely stay) but then you are gambling with loss of estate and Medicaid for your final days. That is OK for some and not for others. I would like to leave a substantial inheritance and find the the $350/mth for excellent coverage for DW and myself to be a reasonable option. The odds are I will pay more than I pull. But DW's father (Alzhiemer's) has already pulled many times more than he paid and he may have quite a bit more time to go.
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Old 11-26-2011, 08:17 AM   #87
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Why not self insure via establishing guaranteed income streams that are adequate to cover LTC? For example, if LTC is $5k/mo, why not use SS + pension (if available) + Annuity to cover any remaining gap to establish >=$5k/mo income?
Most people do not have the means to self-insure. Assisted living is one thing, 24 hour nursing care in many areas can hit $8-$10K a month. Think about needed that for 5-10 years or more......

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The pros (no insurance company to hassle with, you don't pay for something you may not need, you get income from the $$$ you 'give up') seem to outweigh the cons (flip side of pros above, risk of increasing costs via premium increases).Thoughts?
Sure, those are pros, but again, can you afford it? I think LTC is a big issue, medical advances mean that folks who died within months 30 years ago now live decades......
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