Who has long term care insurance?

[LXEX55]

May I ask who your carrier is, and any other details you woud feel comfortable sharing?

 

[Rex]

I don't but we have one for DM. Not sure if this helps because it was bought in 2004. It is w/Lincoln Benefit Life...

Her premiums were $307 month for 10 years. It has a 90 day "elimination period" w/lifetime benefit. Nursing home care is $100/day. She was age 64 when bought.

So far, so good....have not needed it....but seems like a no-brainer considering the average nursing home stay is 2+ years....so would break even after 1 year.

 

[samm]

Not me.

Not many sellers left.

"The number of insurance companies selling long-term care insurance has plummeted since 2000. More than 100 insurers were selling policies in the late 1990s, according to a 2016 study published by the National Association of Insurance Commissioners. Less than a dozen are selling policies today."

https://www.nerdwallet.com/blog/insurance/long-term-care-insurance/

 

[SumDay]

We do. Bought a group policy for each of us about 15 years ago when DH was an engineer for GM. John Hancock is the carrier, and a couple of years ago, GM terminated all involvement with it, but John Hancock allowed participants to convert the policy under the Continuation of Coverage provision. They've kept the premiums pretty steady, surprisingly.

I'm almost ashamed to admit that our total premium is <$200 a month, and that's for both of us, in our 60's. Every other year, we have the option of selecting an inflation increase, which we have all along.

Our daily coverage is $225, and we have a lifetime maximum of $410,000, each.

I feel very blessed to have this and hope John Hancock doesn't zing us.

 

[mystang52]

DW and I have them with John Hancock. Got them about 10 years ago when we were in our late 50's. Not ch - our coverage is pretty good, but premiums are $1500 for her and 1900 for me. DW insisted on it for peace of mind; to this day I'm not sure if it's worth it other than the peace with DW .

 

[Brat]

The policy we have is a paid-up in 10 years that was purchased many years ago. The policy issued by Allianz is no longer offered.

Three of our parents needed long term care so the odds of us needing that is high.

 

[COcheesehead]

I have a hybrid policy through Kansas City Life. Its paid up. No more premiums. Yields a million in cover for LTC or about $165,000 in cash if I choose or about 1.2 million in death benefits.

 

[pjm-7]

I was able to get a group plan with Genworth when I was working. My annual premium is $540 per year for a $100/day benefit for three years.

This probably does not sound like much coverage ($3000 per month), however, I look at this like I do social security it is to be a floor not my total coverage.

 

[Brat]

Some plans are designated as partnership policies with a state. It ties in with Medicaid.

This is what is on Oregon's website:

The purpose of the Oregon Long-Term Care Insurance Partnership program is to make the purchase of shorter term more comprehensive long-term care insurance meaningful by linking these special policies (called Partnership qualified policies) with Medicaid for those who continue to require care.

Partnership qualified policies must meet special requirements that can differ somewhat from state to state. Most states require Partnership policies to offer comprehensive benefits (cover institutional and home services), be Tax Qualified, provide certain specific consumer protections, and include state-specific provisions for inflation protection.

Often the only difference between a partnership qualified policy and other long-term care insurance policies sold in a state is the amount and type of inflation protection required by the state.

Since I know nothing about how Medicaid operates I found the following: Long Term Care (LTC) Partnership Programs are a collaboration between private long-term care insurance companies and a state’s Medicaid program. The intention of partnership programs is to encourage the purchase of long term care insurance to help cover the costs of long term care, while also alleviating the burden on the states to pay for this type of care via Medicaid. Of particular relevance to seniors who may need long term care Medicaid in the future, participating in a partnership program protects some (or in some cases, all) of a program participant’s assets (resources) from Medicaid’s asset limit. Furthermore, the “protected” assets are also safe from Medicaid’s asset recovery program, sheltering assets as inheritance for family after the passing of a Medicaid recipient. Partnership for Long Term Care Programs can be thought of as a Medicaid asset protection technique for healthy seniors who do not have an immediate need for long term care.

 

[Golden sunsets]

We purchased 2 policies from Prudential in 2008, at ages60/62. The per day benefit started at $170, and will pay for 4 years, with increases in benefits of 5% annually. The coverage is now is up to $305/day, or a pool of $445,000 for each of us and can be used for in home care if desired. Prudential no longer sells LTC. The premiums have increased 4 times and I'm sure will increase again. We now pay a combined $8,000/yr.

My observation is that the premiums can be afforded largely by those who probably have the resources to self insure, like DH and I. To others who desire the coverage, the premiums are too steep.

I'm told by our agent that the policy we have could not be obtained today for the same premium.

 

[Pellice]

I have the "regular" (i.e. not a hybrid life insurance) LTC policy with TransAmerica. It is a "step-rated" policy, which means that the premium and the pool of benefits go up 5% every year. Costs and benefits started at a rather low level, and the premiums will pass their those of their "level" program when I reach age 73, (pool of benefits around $410,000) and total premiums paid will begin to pass those of their "level" program when I reach age 83. (pool of benefits around $700,000) However, I can "pause" the program for 3 years at any point, and I can hold the premiums and benefits steady for the rest of my life at any point as well. I anticipate doing that at some point, as the pool of benefits looks likely to increase eventually beyond what I will need.

The premiums can increase beyond this, but last year was the first year where an increase was a possibility, and it didn't happen. And I am thinking it won't happen this year, because I haven't heard yet, and the payment will be due at the beginning of September.

It is a versatile policy, allowing for home care, iincluding housekeeping, assisted living, advanced nursing home care. I do not have immediate family to rely upon, so I am very glad I took this policy, which will enable my nieces to manage my care without my burdening them financially. And it helps me plan my spending now with more confidence about the future.

 

[Sarah S]

I have John Hancock and chose 10 yr pay while working. My sister also had JH and needed it They didn’t fight it at all (she had ALS so it was pretty obvious she was disabled and needed care). They paid for some home renovations and after the waiting period her policy had paid for homecare services to the policy max ( actually reimbursed the following month) she by choice stayed at home. Nursing would have been covered though

 

[savory]

I am on the road writing this so I do not have details. We purchased John Hancock 30 or so years ago. Having long term care experience with DM & DD, I was satisfied with the coverage. We are paying about $1,000 per year for me and DW. There has been some premium and coverage changes over the years.

 

[blueskyk]

We do. Bought a group policy for each of us about 15 years ago when DH was an engineer for GM. John Hancock is the carrier, and a couple of years ago, GM terminated all involvement with it, but John Hancock allowed participants to convert the policy under the Continuation of Coverage provision. They've kept the premiums pretty steady, surprisingly.

I'm almost ashamed to admit that our total premium is <$200 a month, and that's for both of us, in our 60's. Every other year, we have the option of selecting an inflation increase, which we have all along.

Our daily coverage is $225, and we have a lifetime maximum of $410,000, each.

I feel very blessed to have this and hope John Hancock doesn't zing us.

+1 This is exactly our situation. Megacorp quit offering it but we still get group rate standing and rates.

 

[Dash man]

We also have a group policy we got through LM about 20 years ago in our 40s. It is over $1M coverage or ~$600/day for each of us that includes home care, assisted living and full nursing care. We can adjust for inflation every three years which we do. The premiums are $5,900/year for both of us with John Hancock. The premiums are pretty steady except for the inflation increases. We feel blessed to have it because we had gotten shortly before DW’s battle with ovarian cancer 16 years ago.

 

[donheff]

I have LTC with John Hancock but the policy is through the Federal LTC Insurance program so it isn't open to everyone. I assume Hancock uses their Federal experience to design their open offerings.

 

[mh]

We do. Bought a group policy for each of us about 15 years ago when DH was an engineer for GM. John Hancock is the carrier, and a couple of years ago, GM terminated all involvement with it, but John Hancock allowed participants to convert the policy under the Continuation of Coverage provision. They've kept the premiums pretty steady, surprisingly.

I'm almost ashamed to admit that our total premium is <$200 a month, and that's for both of us, in our 60's. Every other year, we have the option of selecting an inflation increase, which we have all along.

Our daily coverage is $225, and we have a lifetime maximum of $410,000, each.

I feel very blessed to have this and hope John Hancock doesn't zing us.

My mom has a JH policy similar to yours - about 2 years ago she started needing some daytime care to help her with the showering etc. So far they been very good w regards to paying for her care

 

[yakers]

I have LTC with the Federal system, have it for 15+ years now. OK plan, I think it covers $150 a day for 3 years. Its more of a financial plan than a medical plan. My Mom had LTC and never used it. Many moving pieces in LTC decisions.

 

[zippy2020]

Bought LTCi exactly 21 yrs ago thru state pension fund sponsorship. Very useful as they use a third-party management company, so if you file a claim you are automatically assigned a rep who advocates for you.

Premiums were grossly underpriced so I warned spouse costs would rise in the future. When policies began our total premiums for both policies was $1900/yr.

4 premium increases have happened. Last two were phased in over 3-yr periods.

Policyholders given various options to limit coverage or drop inflation rider, to mitigate premium increases. We kept our original policies intact. Started with $125/daily:
- 5% compounded inflation rider
- home healthcare rider
- unlimited benefit period (NO LONGER SOLD)
- partnership plan (tax qualified; benefits paid are tax-free and not counted if Medicaid becomes necessary)

Waiver of premium and return of premium death benefit are standard. 90 day deductible met once per lifetime; meaning any days of Skilled Nursing paid for by us count towards the 90 days on a cumulative total.

Benefits are raised every July 1st. Currently $362/day, or $132,130/yrly, as long as policyholder lives.

I pay more than spouse (women live longer on average so premiums are higher than men's). Total $8,556 annually both both policies.

BTW - four years after we bought the LTCi, my spouse suffered a haemorrhagic stroke at age 50. So he's very high risk for either heart attack or COVID-19.

 

[timo2]

DW has LTC with CNA, who no longer sells policies, and I have the Fed LTC which is underwritten by John Hancock. DW recently received a letter asking if she wanted to reduce he plan to a cheaper premium (less coverage of course). She might when she's a little older, but for now she views the LTC policy as catastrophic accident insurance and won't reduce the coverage yet.

 

[REWahoo]

DW has LTC with CNA, who no longer sells policies, and I have the Fed LTC which is underwritten by John Hancock. DW recently received a letter asking if she wanted to reduce he plan to a cheaper premium (less coverage of course). She might when she's a little older, but for now she views the LTC policy as catastrophic accident insurance and won't reduce the coverage yet.

DW and I both have CNA policies and got the same offer of reduced premium for reduced benefits that you describe. Our thinking is similar to what your DW expresses, and now that we're in our 70's and have had the policies for more than 20 years we decided to opt for the reduced premium offer in return for freezing our benefit amount at the current level (it had been increasing at 5% per year, compounded). As a result, our premium amount decreased by a significant amount - 70%. It appears eliminating the unknown of that annual compounded benefit increase is a big deal for the insurer.

 

[easysurfer]

Less coverage or pay more in premiums? Ah .... the old heads you lose, tails you lose thing with LTC insurance .

 

[street]

AFLAC. premium $126. bot two a month. No limit of years and pays $5600. a month per person. Just a few of the details and they don't offer LTC any more. I got in just on the end of their LTC policies before they stopped selling them.

I beleive I have had the policy about 10 years now. I have know others that have used this policy with AFLAC over the years and had very positive feedback from those policy owners.

 

[big-papa]

Yes DW and I both have policies purchased with NY Life just before we turned 50, which we've had for about 10 years. Larger amount for my wife as there is a long history of Alzheimer's in her family. One increase of 30% about 5 years in. I adjusted my policy's benefits downward slightly to partially compensate for that.

FIL had an LTC policy that he cancelled about 2 years before MIL was diagnosed with Alzheimer's. Emotionally and financially very hard on them and something I don't want to repeat.

 

[aaronc879]

Like the majority of the lower income-class people, my LTC insurance is either Medicaid or suicide.