Is Long Term Care (LTC) a good idea?

[MBAustin]

Many LTC plans provide for in-home assistance (non-medical - bathing, feeding, etc.) and care (nursing / medical), so don't assume having LTC means going into a care facility if that is not what you want.

[F4mandolin]

Just can't help thinking it is a rip-off. Things just don't seem right and the prices just keep jumping more than they should. I can't help thinking they are preying on the "what if" crowd. hmmm, don't really want to say want I want to say......

[chinaco]

It is expensive. There are many concerns about the insurance companies and rising rates.

We have it because we go it at a very low cost through a group plan at work. However, as we age, the inflation option (cost) rises.

Insurance (when properly applied) is used to mitigate the risk of a financial loss.

It is a complicated topic.

IMO - the overall issue is as much about protecting the joint assets for the surviving spouse as providing money for the care of the insured.

[Purron]

Quote:

Originally Posted by chinaco IMO - the overall issue is as much about protecting the joint assets for the surviving spouse as providing money for the care of the insured.

I agree. If DH and I decide to cancel our LTC insurance, we would look for other ways to protect our assets from Medicade.

[Rich_by_the_Bay]

Quote:

Originally Posted by Purron I agree. If DH and I decide to cancel our LTC insurance, we would look for other ways to protect our assets from Medicade.

Just curious if anyone has investigated whether a SPIA (bought early enough to pass the look-back rules of your state) can play a role here in that regard. While it might be diverted to Medicaid during the owner's life, would the surviving spouse (assuming it was set up this way) resume collecting distributions after the other's death?

[mf15]

What scared us into LTC ins is when my mother got sick, and I read the Pa state medicade information booklet. Scared the hell out of me.
Old Mike

[Amethyst]

Even with home care, somebody else (the carer) is still in charge...you get the consideration they are willing to give, in return for how much you can afford to pay, and I'm sure everything is common denominator all the way - no special treatment for independent spirits - especially if you are not wealthy.

How will independent, rebellious, I-do-it-my-way spirits (like ours) cope? I hope I'm not getting too off-topic, by the way.

Amethyst

Quote:

Originally Posted by MBAustin Many LTC plans provide for in-home assistance (non-medical - bathing, feeding, etc.) and care (nursing / medical), so don't assume having LTC means going into a care facility if that is not what you want.

[BTravlin]

After having seen numerous relatives on my mother's side go through long term care facilities I want no part of them. I can only hope for the quick exit that is prevalent on my father's side of the family. Either that, or self insure with a .357. I would prefer to just go off for a long hike in the mountains or one last deep dive but I probably wouldn't be healthy enough to execute either of those options.

[Rich_by_the_Bay]

In comparisons of LTC v go-bare, it is often overlooked that benefit limits -- even with COLA -- may well leave you with a significant cash flow burden even after the policy pays. This is hard to assess in advance, but the per diem benefits may well fall short. So it's not a pure "all or nothing" comparison in the end.

Obviously you are better off with those benefits than without, but in making a decision about whether to buy, don't assume that if you do you are out of the woods as far as out-of-pocket costs in the event LTC is needed.

Just to make the decision a little more complicated...

[zinger1457]

Quote:

Originally Posted by BTravlin After having seen numerous relatives on my mother's side go through long term care facilities I want no part of them.

Spent a week doing some IT work for a care facility in Phoenix, it was the most disgusting place I've ever seen. The smells in this place were unbearable, we had to go outside every hour to get fresh air.

[Purron]

Quote:

Originally Posted by Rich_in_Tampa In comparisons of LTC v go-bare, it is often overlooked that benefit limits -- even with COLA -- may well leave you with a significant cash flow burden even after the policy pays. This is hard to assess in advance, but the per diem benefits may well fall short. So it's not a pure "all or nothing" comparison in the end. Obviously you are better off with those benefits than without, but in making a decision about whether to buy, don't assume that if you do you are out of the woods as far as out-of-pocket costs in the event LTC is needed. Just to make the decision a little more complicated...

Yup, I've heard this is the case. Health and LTC insurance issues worry us a lot. Just seems like a no-win situation. If the policy did keep up with the rapidly rising costs of LTC, the premiums would likely be higher. Pay more now, or worry your policy may not cover everything if you end up needing it?

[Rich_by_the_Bay]

Quote:

Originally Posted by Purron Yup, I've heard this is the case. Health and LTC insurance issues worry us a lot. Just seems like a no-win situation. If the policy did keep up with the rapidly rising costs of LTC, the premiums would likely be higher. Pay more now, or worry your policy may not cover everything if you end up needing it?

Exactly. They ultimate weapon is major reduction in expenses by the healthy one and dipping into funds ahead of schedule, knowing the 3-year odds of survival once admitted to a nursing home. You can only hope to recapture some of those withdrawals through a lower-expense revamp of your FIRE plan.

So live well, enjoy your health and retirement and you'll find a way to deal with it at the time. At least that's what I tell myself when it comes up.

[Purron]

Quote:

Originally Posted by Rich_in_Tampa They ultimate weapon is major reduction in expenses by the healthy one and dipping into funds ahead of schedule, knowing the 3-year odds of survival once admitted to a nursing home.

As I've discussed here on other threads, my MIL recently passed away just a month shy of her 91st birthday. She was disabled by a stroke and spent over 10 years in a nursing home. The odds didn't apply to her situation. While her case is not typical, we feel we need to be prepared for this scenario.

Dang this is a depressing topic. I think I need some of Dawg's meds.

[bbbamI]

Quote:

Originally Posted by Rich_in_Tampa So live well, enjoy your health and retirement and you'll find a way to deal with it at the time. At least that's what I tell myself when it comes up.

Yes, that's my plan.

No LTC insurance for me as there are too many variables.

[Moemg]

No one in my family ever spent longer than a month in a Nursing Facility so I am hoping the odds are with me on this one .

[misanman]

I'm considering self insuring but (obviously) need to determine how much to set aside. Sorry if I missed this, but can someone point me to statistics for care costs by state? Also, any thoughts on what kind of inflation we might see for those costs?

[ziggy29]

Quote:

Originally Posted by misanman Sorry if I missed this, but can someone point me to statistics for care costs by state? Also, any thoughts on what kind of inflation we might see for those costs?

Here's a link to a site that includes a state by state map of costs (I believe these were average costs in 2009):

Costs of Care ?

As for inflation, I see no reason to believe that LTC costs won't continue to rise at a level considerably above inflation.