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View Poll Results: LTC - how do you plan to manage/cover this risk?
purchase LTCI 31 18.24%
Purchase Life insurance with LTC rider 1 0.59%
Self Insure -- how are you doing this? 81 47.65%
Purchase annuity that could be used for LTC, distributed other wise 1 0.59%
Other 7 4.12%
Roll the dice -- no real plan (yet) 49 28.82%
Voters: 170. You may not vote on this poll

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Old 08-22-2015, 09:00 PM   #181
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Quote:
Originally Posted by jazz4cash View Post
THIS!!!
A policy to cover the first spouse only would be very attractive to me. We just met with a Met Life rep about another matter and the topic of LTCI came up so I asked if such a policy existed and he just kinda stared into the distance. Anybody know of any way to cover the first spouse and preserve assets for surviving spouse?
So how do you "cover the 1st spouse? But what if the first spouse does not stay in all that long?.. and then returns to the community. How I would think of covering the first spouse... but two LTCi policies at the same time as a couple and pay for a shared benefit rider. Assuming the 1st spouse uses all their benefit and the other does not, they then tap into the other policy. Now the question is how much to fund the policies.

As for impoverishing the other spouse, look up a medicaid compliant annuity. This may be a way to keep form impoverishing the community spouse if the one in LTC is obviously never coming out.
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Old 08-23-2015, 02:13 PM   #182
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Originally Posted by FIYes View Post
I read every LTC thread with interest. We don't have LTC insurance so we are in the self insurance crowd...and probably more into the hoping for good luck, roll the dice crowd than I care to admit. My one concern is that one of us could end up needing extensive LTC and impoverish the other. I am not so concerned if the last to die blows through all the assets....don't have a desire to leave a large estate.

Given my concerns, why don't I got for LTC insurance? At this point I just don't feel good about any of the plans offered.
Exactly my concern. The second to die can sell the house and use all the financial assets. That will pay for care to the point that we are dead or don't care.

But, I don't want he first to be the one who needs extensive care, then bankrupts the other. A shared pool LTCi policy might work, a good state partnership plan may work. Unfortunately, I think I need to research this more.
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Old 08-23-2015, 03:32 PM   #183
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Originally Posted by Independent View Post
Exactly my concern. The second to die can sell the house and use all the financial assets. That will pay for care to the point that we are dead or don't care.

But, I don't want he first to be the one who needs extensive care, then bankrupts the other. A shared pool LTCi policy might work, a good state partnership plan may work. Unfortunately, I think I need to research this more.
Look at a medicaid compliant annuity. These are there to allow the first in to qualify for medicaid and not impoverish the community spouse. But they are not there to fund the heirs.
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Old 08-23-2015, 08:07 PM   #184
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A few things... covered in other threads.

Re: Medicaid and nursing home in Illinois... likely in other states.
For non-nursing home spouse. Not a simple one sentence explanation, but likely similar for most state. Cover age, situation, spend down etc. If you should plan to make this a possible part of your retirement planning, the ten minute read could save later mistakes and certainly very much money. The five year lookback is extremely important. Using the law properly could result in hundreds of thousands of dollars in savings.

Illinois Legal Aid | Disabilities Guidebook: Medicaid (for Adults)

Note that the "staying in the home" refers to the spouse. The alternative would be selling the home and using the proceeds to pay the nursing home expense. In the first case, a five year stay in the nursing home would leave the surviving spouse with the home, still living there until death, which could be ten years later. Selling the home would essentially leave the survivng spouse with paying the nursing home the income from the home sale and the minimum cash allowed (perhaps $50K) to live on and no home.

The use of medicaid assumes that after the 2nd spouse passes away, the nursing home expense would be paid from the receipts of selling the home. In other word, a iien on the property. Obviously the better option.
.................................................. ...............
On the matter of LTC insurance. The poiicy should be studied in great detail. Very simply... the early policies were based on statistical presumptions that were very wrong. Our simple policy of $100/day purchased in the early 1990's guaranteed no increases in premiums except for some narrow exceptions which have not come to pass. That said the original guarantor (Travelers) sold to Conseco, who also resold, until the policy came to rest in a Pennsylvania non-profit Trust Fund... Senior Health Insurance of Pennsylvania... SHIP. Most current and new policies have escalation costs. SHIP - Welcome

.................................................. .................
We can only plan on situations as they exist today, but without looking at the many possibilities... five to thirty years in the future, making decisions based only on current assets or income sources... inheritance, SS, Pension etc... without considering alternatives, could be costly.
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