LTC 96 years old

[jeeper]

Hello, I am now my fathers power of attorney. His annual Long Term Care payment is due next month. He does not care if I renew or not. He is 96 years old, and in good health for that age (i.e., no physical or mental problems). He is living in an assisted living facility.

The LTC particulars:
90 day elimination
$120 day payout to about $130,000 pot of money
Must have two of the following cognitive impairments determined by LTC nurse:
Dementia
Alzheimer
Unable to eat, dress, toilet, transfer, or countenance

He has the money for the $4500 payment, but I would like to be able to justify the expenditure to him.

I would appreciate your comments on this.

 

[2017ish]

Wait, he needs BOTH Alz/Dementia AND unable to eat, dress, toilet, transfer, or continence?

Or, he needs two of AlZ/Dementia, eat, dress, toilet, transfer, or continence? (More likely.)

If the latter (e.g., if he needs help dressing and eating = sufficient), probably worth keeping--assuming his income/estate is not in a position to easily pay the tab of LTC.

(Speaking as someone who will not be buying this product, but recognizing that it can serve a valuable purpose for many.)

 

[Avocadorunner]

I think the decision to renew the policy should include an evaluation of your father's net worth. My MIL spent four years in assisted living during her battle with ALH. Her modest bank account was depleted pretty quickly and DW and I paid the monthly charge of $5500. DW and I have a LTC policy, but I regretted not buying one for my MIL yrs ago. Keep in mind that a stroke could very likely result in loss of two of those impairments.

 

[pb4uski]

Even though he is currently in good health, for a 96 year old that could change in a heartbeat and he could need LTC, even though the LTC benefit will probably only provide less than half of what a nursing home would cost (at least around here).

If he has substantial assets then the $4,500 premium could be a wise expenditure. OTOH, if he has little assets then if he had to go into a nursing home he would quickly deplete them and Medicaid would kick in.

 

[Lcountz]

Not to be insensitive, but does he have a DNR? (do not resuscitate)?

He's 96 and in relative good health.....he COULD live on to 106!!!! Or, like my Mom, who lived, mostly independently and sharp, to 94.5 in her own home til the last week of her life, it could be quick.....

I think I'd pay the annual premium. IF something DOES happen, you'll be grateful that you did... and if something happens, the items on the list about losing mobility, toiletting, eating and dressing abilities will in all likelihood happen at that age.

96 and still healthy....I hope you are grateful and thankful every day, both for his quality of life and for you being able to enjoy his time left with you!!!!! I sure was with my Mom.

 

[ChiliPepr]

Wait, he needs BOTH Alz/Dementia AND unable to eat, dress, toilet, transfer, or continence?

Or, he needs two of AlZ/Dementia, eat, dress, toilet, transfer, or continence? (More likely.)

If the latter (e.g., if he needs help dressing and eating = sufficient), probably worth keeping--assuming his income/estate is not in a position to easily pay the tab of LTC.

+1

Think about is this way... If you went into the insurance agency today and asked then the same question, what would they say? Or how much would they charge you today for the same policy?

Also, he is in good health, a busted hip could make him not be able to dress or toilet... but because he is healthy, he could need care for a long time.

 

[jeeper]

Wow, thank you all for the replies! They have been informative and gentle for the subject matter.

Dad has substantial assets, so no real worries about the premium payment. I just wanted to be able to explain to him the reasons for continuing the policy.

It was explained to me by the insurance carrier that any two of the cognitive impairments would qualify him to start the benefit. This would be determined at the time the insurance company nurse performs the onsite assessment.

He does have a do not resuscitate (DNR).

Thank you for pointing out some of the real situations that come up that would trigger the insurance to start.

 

[Avocadorunner]

And also keep in mind that the policy is covering assets that will eventually pass to his heirs.

 

[MRG]

I'm not a fan of LTC but in this case I'd do it. At 94-95 things changed rapidly with DF.

Sent from my SAMSUNG-SM-G920A using Early Retirement Forum mobile app

 

[audreyh1]

He's paid for the policy all these years up to 96! He's healthy and might still need it, and can afford to pay for it, so it makes sense to continue, IMO. This is the time he's most likely to use it - just one issue away, really. Any accident might mean he can no longer completely take care of himself.

 

[Sunset]

Congratulations on having a father live so long.