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Long Term Care
Old 03-05-2014, 04:08 PM   #1
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Long Term Care

After recently having a relative incur the need for long term care, I have been looking into LTC insurance for my wife and myself. Both being in our mid 50's and and good health, I believe we would qualify for some type of plan. Does anyone have any other ideas on how to plan for LTC in case you don't qualify for coverage? There must be other ways or products on the market to help take the pressure off of ones personal finances if LTC is needed. Any ideas? Thanks in advance.
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Old 03-05-2014, 05:06 PM   #2
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You would think so, but not really. The industry has repeatedly messed this product since inception and Long Term Care insurance remains problematic. A detailed discussion in case you are having trouble sleeping is here: Life, Investments & Everything: Insurer Nastygrams: When Long Term Care Insurance Premiums Rise

I have chosen to self insure as things stand now.
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Old 03-05-2014, 07:47 PM   #3
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I was able to pickup a very basic plan ($100 per day with a three year benefit) through my employer with no health underwriting. I'm responsible for the premium. I'm confident about my finances and retirement income, but this will be something that will provide a base if needed. It's like how I view social security, I work all of my numbers around my own assets and what ever I will receive from ss will just be a base.
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Old 03-05-2014, 08:07 PM   #4
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All of my research into it led me to conclude I'm better off to self insure. You could pay premiums for decades without using it, and there is little you can do if they arbitrarily decide to raise premiums over the years. It feels like you are handing over far too much control (and money) to the LTC companies for my comfort.
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Old 03-06-2014, 08:38 AM   #5
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We signed up for a policy through my work in our late forties for $360/day 5 year coverage including home care if needed. It currently runs $2000/yr for both of us. I keep hearing about a jump on rates, but haven't seen it except when we exercise the inflation protection the policy offers every three years. Neither of us could qualify today at age 57, so we're happy we got it when we did.
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Old 03-06-2014, 05:24 PM   #6
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We self insure for this risk. LTCi is so unpredictable and unnecessary that in some cases it's better to just save up a bunch of your own money and hope that you won't have to spend it on LTC options. It's been discussed here many, many times.
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Old 03-06-2014, 05:33 PM   #7
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We also elected to self-insure for the same reasons brewer, Ready, and mickeyd mention. That and pick a CCRC that won't throw us out if resources are exhausted.
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Old 03-07-2014, 07:19 AM   #8
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Quote:
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We signed up for a policy through my work in our late forties for $360/day 5 year coverage including home care if needed. It currently runs $2000/yr for both of us. I keep hearing about a jump on rates, but haven't seen it except when we exercise the inflation protection the policy offers every three years. Neither of us could qualify today at age 57, so we're happy we got it when we did.
Are there still policies out there like this today? Do you mind saying the company or PM me? I wonder how much more it would cost of you were trying to find policies like this at your current age...
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Old 03-07-2014, 07:30 AM   #9
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Our plan is to self-insure. The benefits seem to be falling while the premiums are increasing. In the past, the only value might have been for something catastrophic, like 10+ years in LTC but as far as I know those policies are no longer being offered. Better to draw at a more conservative rate and leave more for contingencies IMO.
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Old 03-07-2014, 07:32 AM   #10
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I bought LTCI two years ago. So far the premium has not increased. Turning 49 this year.
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Old 03-07-2014, 07:36 AM   #11
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Are there still policies out there like this today? Do you mind saying the company or PM me? I wonder how much more it would cost of you were trying to find policies like this at your current age...

I doubt there are any out there now. Lockheed Martin stopped offering this John Hancock group policy several years ago. I know John Hancock has tried to increase the price, but I think group policies escaped the significant increases so far.
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Old 03-07-2014, 07:38 AM   #12
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Self insure. I suppose I could let either of the kids purchase it to insure their inheritance; in the worst case they'd be the losers, not us. Having watched what happens to too many people, relatives included, I'm starting my pure pork diet in another ten years, I want the massive heart attack and to be done with it quickly. Life is good and then you die. Ummm, not from what I've seen. There's this interim period I'm not looking forward to.
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Old 03-07-2014, 08:16 AM   #13
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My plan is self insure and we will go back to our home country and die there. Our 2 kids were born in US and likely will stay in US after college. They are dual citizens too so we may send them airline tickets to visit us once in a while.

According to a friend's experience, the best facility over there now cost about $2000 US a month, so that is 1/5 of the cost comparing to US. The national universal health system there may also pick up some expenses.
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Old 03-07-2014, 10:51 AM   #14
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When I calculate my SWR and investable portfolio for ER purposes I hold $107k aside. That should cover 14 - 18 months of LTC. Having said that, I plan on entering a CCRC when I am 75 or so. I would use that 107K for buy in costs (after house sale) if needed.
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Old 03-07-2014, 11:14 AM   #15
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We are also self insuring. From what little I have looked at LTCI, the premiums seemed too high in relation to the potential benefits. If it ever get more sensible I would reconsider.

OTOH, my sense is that the carriers that are still in the business aren't making much on it so perhaps the risk is more than my perception of it.
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Old 03-08-2014, 04:21 AM   #16
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We are also self insuring. From what little I have looked at LTCI, the premiums seemed too high in relation to the potential benefits. If it ever get more sensible I would reconsider.

OTOH, my sense is that the carriers that are still in the business aren't making much on it so perhaps the risk is more than my perception of it.

We're paying roughly $200/month for both of us that would pay out up to $21,000/month if we both needed care. That to me seems like a good deal. Our premiums are relatively low since we bought this group policy in our late forties, but even a 50 percent increase wouldn't cause us to cancel it.
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