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View Poll Results: What's the highest amount you would self-insure for?
under $2k 0 0%
$2k to $4k 4 6.56%
$4k to $8k 14 22.95%
$8k to $16k 20 32.79%
$16k to $32k 6 9.84%
$32k to $64k 3 4.92%
higher than $64k 14 22.95%
Voters: 61. You may not vote on this poll

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Re: What's the highest amount you would self-insure for?
Old 05-09-2007, 06:38 AM   #21
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Re: What's the highest amount you would self-insure for?

Quote:
Originally Posted by chinaco
Unless you are truely wealthy, you would be advised to get LTC insurance. The event will devistate your assets (or the assets of the surviving spouse).
Consider LTC like home insurance. The event of a fire is unlikely, but would you go without it to protect your home (Asset). LTC is protection against the loss of your portfolio.
Have you priced LTC insurance lately?? Might be affordable if you are
50, but when you're 75?
TJ
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Re: What's the highest amount you would self-insure for?
Old 05-09-2007, 11:18 AM   #22
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Re: What's the highest amount you would self-insure for?

I'm with MooreBonds on this one. I also plan to self-insure for LTC. I think LTC insurance specifically, and most insurance generally, is a racket.

I realize I'm taking a calculated risk.

2Cor521
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Re: What's the highest amount you would self-insure for?
Old 05-09-2007, 11:21 AM   #23
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Re: What's the highest amount you would self-insure for?

Quote:
Originally Posted by SecondCor521
I also plan to self-insure for LTC. I think LTC insurance specifically, and most insurance generally, is a racket.
I guess would split it down t he middle as half a racket and half a necessary evil. But the consistent 15 to 20% ROE posted year after year by most insurers suggests that the racket part dominates...
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Re: What's the highest amount you would self-insure for?
Old 05-09-2007, 11:26 AM   #24
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Re: What's the highest amount you would self-insure for?

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Originally Posted by brewer12345
I guess would split it down t he middle as half a racket and half a necessary evil. But the consistent 15 to 20% ROE posted year after year by most insurers suggests that the racket part dominates...
Yeah, that's part of the issue. The other part is that insurance companies make that ROE after their 20-30% overhead. And then there's just the hassle factor of dealing with the insurance company when you're getting the policy, paying for the policy, making the claim on the policy, etc. I'm against euthanasia but in this case I'd rather go out like Hillary Swank in Million Dollar Baby than deal with the LTC hassle.

2Cor521
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Re: What's the highest amount you would self-insure for?
Old 05-09-2007, 11:29 AM   #25
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Re: What's the highest amount you would self-insure for?

LTC is a particular problem because it isn't a mature product. That means pricing is questionable, relatively few companies offer it, it isn't clear whether your premiums will get jacked to the sky in the future, and Gawd only knows if the companies writing it will still be around in 20 years when you might need them.

No thanks.
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Re: What's the highest amount you would self-insure for?
Old 05-09-2007, 05:45 PM   #26
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Re: What's the highest amount you would self-insure for?

Quote:
Originally Posted by teejayevans
Have you priced LTC insurance lately?? Might be affordable if you are
50, but when you're 75?
TJ
You are likely correct. If you are trying to purchase @ 75... it is probably very expensive. Essentially you decide to self insure.

I purchased it on DW group policy through her employer with an inflation rider. It was/is fairly inexpensive. It is ours on going under the plan.

I can't disagree with most of the concerns about LTC... But the premiums are not too bad... so we took it.
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Re: What's the highest amount you would self-insure for?
Old 05-09-2007, 10:59 PM   #27
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Re: What's the highest amount you would self-insure for?

Quote:
Originally Posted by chinaco
You are likely correct. If you are trying to purchase @ 75... it is probably very expensive. Essentially you decide to self insure.

I purchased it on DW group policy through her employer with an inflation rider. It was/is fairly inexpensive. It is ours on going under the plan.

I can't disagree with most of the concerns about LTC... But the premiums are not too bad... so we took it.
I thought you were the same person who posted that you were in fifth grade in October 1987. That would make you about 31 now, give or take. Why buy LTC so early? Even most who advocate it (at least last I read on the subject) recommend getting it about 50.

2Cor521
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Re: What's the highest amount you would self-insure for?
Old 05-10-2007, 03:48 AM   #28
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Re: What's the highest amount you would self-insure for?

Quote:
Originally Posted by SecondCor521
I thought you were the same person who posted that you were in fifth grade in October 1987. That would make you about 31 now, give or take. Why buy LTC so early? Even most who advocate it (at least last I read on the subject) recommend getting it about 50.

2Cor521
You are confusing me with someone else!

I am the later age. But we did go ahead and get it a few years back on a company group plan. Since DW was not using all of her cafeteria benefit allocation on the normal stuff (partly because I am on my own companies health plan), we thought it would be a good idea to get it. We got in @ 45. In other words, would rather hedge the risk than keep the couple hundred bucks.

Just as a side note... There is a small risk (I will admit), but people do wind up with problems at a younger age (e.g., an accident in an auto) and require care. Our plan cover Home Health and a variety of other options.

Well placed insurance makes sense to me. For us that is Home, Auto, Umbrella, Health, and LTC. Yes, it does cost a few $ per year... but we have alot to lose! And it took years to acquire it.

If I had to pay 12k or 15k per year on health ins... I would probably still do it (or figure out how to avoid the catastrophic costs) rather than face the possibility of losing everything.

LTC for us is a low cost. It is my belief that LTC is as much for the spouse that does not go to a NH as it is for the one that has the problems. IT gives them the resources for help without using up their assets. I have seen too many people wind up in a NH or needing expensive assistance (long-term).

All of that said... I am paying for the insurance, but I also praying that it is insurance that I never need it.

I think you will find that LTC is very prudent advice that is general recommended in retirement planning unless you have nothing to lose or are wealthy enough to self insure.

The fact that the discussion is happening means some people are unsure of what to do! If you wait until you need it or the probability is higher that you will need it (age), you will not be able to get it.
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Re: What's the highest amount you would self-insure for?
Old 05-10-2007, 01:46 PM   #29
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Re: What's the highest amount you would self-insure for?

Quote:
Originally Posted by chinaco
You are confusing me with someone else!
My apologies.

2Cor521
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Re: What's the highest amount you would self-insure for?
Old 05-10-2007, 06:09 PM   #30
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Re: What's the highest amount you would self-insure for?

$10000 on house
$1000 on car

Totally self-insured for earthquake since the cost is obscene in my area, estimate $110K?
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