A New Perspective On LTCI?

[easysurfer]

Does the Covid-19 situation make you think any differently about long term care insurance (LTCI)?

I keep thinking about if people had paid the large premiums for LTCI, then put themselves or loved ones in nursing homes only to have them die from the infection?

I know regardless, there still is the need for LTC, but to me the virus seems to muddle an already muddled situation.

 

[pb4uski]

Does the Covid-19 situation make you think any differently about long term care insurance (LTCI)?...

Nope.

 

[easysurfer]

Nope.

Short and sweet answer by you .

 

[cathy63]

Are people who have LTCI more likely to end up in nursing homes? I'm not sure that's actually the case. I do think people with LTCI are more likely to have access to higher quality facilities.

If you have LTCI, you may also be able to get more in-home care paid for, which would keep some patients out of group housing situations.

 

[easysurfer]

Are people who have LTCI more likely to end up in nursing homes? I'm not sure that's actually the case. I do think people with LTCI are more likely to have access to higher quality facilities.

If you have LTCI, you may also be able to get more in-home care paid for, which would keep some patients out of group housing situations.

Good point. In other words, I guess there's actually more a case for LTCI due to Covid-19.

 

[Sunset]

I was thinking Covid-19 makes me think there is less need for LTCI, as once a person moves into a nursing home, it's more likely to be a short stay...

Even if I had LTCI, I'd be avoiding a nursing home as much as possible, so while it can pay for Home care, I'd guess Home care is cheaper than a nursing home, so the value benefit is less.

 

[REWahoo]

Does the Covid-19 situation make you think any differently about long term care insurance (LTCI)?

I keep thinking about if people had paid the large premiums for LTCI, then put themselves or loved ones in nursing homes only to have them die from the infection?

I know regardless, there still is the need for LTC, but to me the virus seems to muddle an already muddled situation.

The answer to this is conditional and dependent on individual circumstances. In my case it has caused me to re-think and to modify my approach to how we will pay for LTC costs if the need arises.

DW and I have LTCI policies and the annual premiums are due on the 10th. We were notified in January of yet another rate increase, this time 64%. This is the third increase in premiums in the last seven years, resulting in rates 220% above where they started.

Since the rates were very reasonable when we took out the policies 20+ years ago, I had decided to hold my nose and pay up. But the Covid-19 situation has caused me to re-think my decision and go another route. We have the option of removing the automatic 5% benefit increase rider (compounded annually) from the policy, thus freezing the benefit amount at the current level. This will drop the premium by a substantial 70%, back to an amount close to what we were originally paying. I'm going to take this option.

My rationale for doing so goes beyond the obvious fact I'm [-]cheap[/-] frugal. Being pessimistic, I could say Covid-19 will make it unlikely any of us would survive for an extended period in a LTC facility. Why pay ever increasing rates for something that is even less likely to be of benefit than BCV (before coronavirus)?

While that may be the case for now, no one knows how long the threat of the disease in LTC facilities will continue. However, even if a vaccine shows up in the near future and things go back to normal, the decision to modify our policies to remove the inflation rider is still my preference. DW and I have reached our early 70's with a sufficient conservatively invested nest egg that we should be able to self-insure for our LTC needs, especially with the benefits from the LTCI policy we will retain.

I just cut our expenses by $200/mo. .

 

[audreyh1]

We don’t have LTC insurance, but the covid-19 situation hasn’t changed my mind about CCRC type situation. Obviously, they are going to have to get way better at infection control.

Having watched DF less and less able to care for himself and his house in his 80s, finally at 86 moving to a group care home where he did quite well for a few years - certainly less stressed - before declining and needing a lot more care. I’m just extremely aware of how difficult it is to be in your own as you age. I don’t want to stay in my own house until the last minute. I wouldn’t be able to manage my own care anyway, let alone take care of my house, bills, etc. I’m not looking for longevity once I’m in an eldercare situation. I’m looking for comfort and release from a huge number of everyday life hassles.

 

[MrsHaloFIRE]

Not a new perspective on the insurance, but on using residential LTC. Prior to this I had seen a really successfully experience for my grandmother in a small personal care home, and high quality inpatient rehab care post surgery for several friends and family. But after having seen this situation, and dealing with FIL in a multistage home across the country, I am now not so much a fan. They are guarded, no communicative, not using common sense, and hiding behind the telephone since they wont allow anyone in the building. Their resources and staffing are strained, I don't feel like they were advocating with their local and state systems to do adequate testing and infection control, and in summary Im very thankful FIL was well, and then rapidly so ill he needed to go to a high quality hospital (not the local one they suggested, but the better one we demanded). I feel better about him being hospitalized as they were just not monitoring and providing good care there.

They allowed FIL to make the decision NOT to move to skilled nursing when he got sick and NEVER called us to ask us, but then when he got sicker they called and asked what we thought. Well what we thought was maybe you should have asked us prior now that we know you wanted to move him and he declined, but now all of a sudden you are looping us in and letting us assist with decisions. Why the waffling? WHy let him make his own decisions last week and not even tell us what was going on, but now THIS week you allow us to be involved in his decisions. I should point out hes 100pct aware and lucid and speaking this entire time but we hold legal and healthcare POA for him.

So to answer the OP's question, which is a really good one, Im glad we have it in place for DH but I don't think I will look as favorably on ANY kind of inpatient anything for him, rehab or LTC. I want him in front of me where I can see EXACTLY whats happening. Luckily his policy pays 100pct of the daily benefit rate for inhome care also.

 

[donheff]

DW and I have LTC insurance. The primary reason is to protect our estate for our heirs. Our hope is that it would enable us to get good in house care if needed, Second, would be nursing home care for advanced Alzheimer's.

Covid-19 doesn't change the calculation but it does strengthen our plan to try to age in place rather that look toward CCRCs.

 

[COcheesehead]

I hadn’t thought about it, but here’s a secret. You will die from something.
I like my hybrid policy. I can use it for LTC, cash or the death benefit ...or any combination there of. I like that flexibility.

 

[Spock]

Not a new perspective on the insurance, but on using residential LTC. Prior to this I had seen a really successfully experience for my grandmother in a small personal care home, and high quality inpatient rehab care post surgery for several friends and family. But after having seen this situation, and dealing with FIL in a multistage home across the country, I am now not so much a fan. They are guarded, no communicative, not using common sense, and hiding behind the telephone since they wont allow anyone in the building. Their resources and staffing are strained, I don't feel like they were advocating with their local and state systems to do adequate testing and infection control, and in summary Im very thankful FIL was well, and then rapidly so ill he needed to go to a high quality hospital (not the local one they suggested, but the better one we demanded). I feel better about him being hospitalized as they were just not monitoring and providing good care there.

They allowed FIL to make the decision NOT to move to skilled nursing when he got sick and NEVER called us to ask us, but then when he got sicker they called and asked what we thought. Well what we thought was maybe you should have asked us prior now that we know you wanted to move him and he declined, but now all of a sudden you are looping us in and letting us assist with decisions. Why the waffling? WHy let him make his own decisions last week and not even tell us what was going on, but now THIS week you allow us to be involved in his decisions. I should point out hes 100pct aware and lucid and speaking this entire time but we hold legal and healthcare POA for him.

So to answer the OP's question, which is a really good one, Im glad we have it in place for DH but I don't think I will look as favorably on ANY kind of inpatient anything for him, rehab or LTC. I want him in front of me where I can see EXACTLY whats happening. Luckily his policy pays 100pct of the daily benefit rate for inhome care also.

Healthcare POA only means you can make decisions for him when he can't make them himself (ex. unconscious). You said he was 100% lucid and aware. In order for you to make decisions on his behalf you have to get him declared incompetent to make those decisions for himself and be appointed as his guardian by the court.

 

[Koolau]

Our LTCI does have a limited at-home option (assuming it can work for whatever situation we find ourselves). At this point, I guess I'll see what happens. My HOPE is that we won't face such a situation again (COVID). If not, then nothing has actually changed (for me) assuming I get through this time BEFORE needing LTC. Black swans and all that, but YMMV.

 

[Dtail]

For my DM, we locked in the same premium for another 9 years in return for reducing the 5% COL to 1% COL increases and unlimited coverage down to 3 years coverage.
The premium increase would have been over 50%.
She will be 96 y.o. then.