Who has long term care insurance?

[SpinDoctorTX]

I signed up with John Hancock when I started my last position- in 2004. COL coverage goes up yearly, and I now have over 450k. with a $97./mo pymt. I hope to not need it, but just in case. I turn 60 tom'w, & DH will be 73 next week. I have no children. DH has 2 adult sons, one with 2 GSs. I wouldn't expect any kind of care from a stepson in another state (or even in TX). It's not like I would leave them an unfair % of inheritance to them (if there is much money other than our main dwelling). 50/50 each family.

My Maternal GMA & GGM both lived to 101. I won't see that as I had a lot more fun than they did. But a course correction at age 50 has reversed almost all medical issues, so I may see 90. I do not want to be a burden for anyone, and I want to be well taken care of- hopefully at home.

I'm glad to see some changes in the industry, surrounding the type of care that LTC will pay. Service in home is more commonly covered now. Who knows- I might end up one of 2 Golden Girls- ya never know.

 

[gerntz]

We've had them for over 30 years.

 

[Bluegrass]

My 85 year old father fell and broke his hip last October. He had surgery and is doing well, but he has permanent mobility issues. My 81 year old mother is in great shape, but she can’t wrangle my father. Fortunately, my parents both have LTC policies with Mutual of Omaha. Both my mother and I have been very happy with the benefits under the policy.
A trained home care person comes 6 days a week from 11 to 6. After a few stumbles and bumbles getting started, Mutual of Omaha has delivered what it was supposed to under the policy. And my parents have been happy with the folks the care agency sends out (they have a couple of “regualrs”). I have no idea if we’ve just been lucky, or if it always goes this smoothly. It’s been a godsend.

 

[Brat]

If I were buying today I would look for a 'partnership' policy all other offerings being comparable.

 

[Poopycat]

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.

I’m kind of in the same situation. My former company offered LTC insurance through John Hancock so I signed up. Then my company dropped it but I was allowed to convert to an individual premium. I’m irritated because I can’t access their web site now to get you exact payment info but I believe I pay every six months for around $160 for the 6-month period. I was very young when I signed up which is probably why my premiums are so low. My daily benefit is $339/day, I believe, for LTC and $279/day for in-home care. If I get into the site and my info is wrong, I’ll correct it. I’m going to have to call next week anyway since I just moved and need to change my address.

So frustrating when a web site isn’t working!!!

 

[Rocket Man]

My wife and I do not have LTC insurance. I never felt it made good financial sense. Commercials try to scare you into buying it.

 

[MrsHaloFIRE]

DH bought the federal LTC Cadillac of a policy with the yearly inflation rider and no OOP max before he met me bc he was certain he was a confirmed bachelor We kept it, have lived thru I think one rate increase in 15 years (knock on wood) and we get an annual statement about the new daily rate. We didn't want to pay the new rate so we took a slightly lower inflation rider to keep same premium.

For us it's kind of to preserve wealth for me. If I were to need LTC very unexpectedly early he could write a check to pay for a lot if it and his pension cash flow is good. If he were to need LTC I could theoretically write some checks but then if he passed most of his pension stops and our pot would be low for my remaining years. So his LTC policy is kind of insuring the pot for me.

If i we're buying now id look into a hybrid plan offering LTC and life insurance.

In other discussion groups I think ppl plan their entire unknown futures on what I view as modest life insurance. I can't live on a million dollars in life insurance for 50 years including my probable LTC needs as a widow. Or how about I dont want to? Some folks think they can bc maybe a million sounds like so much money? Dunno

 

[jw72]

My parents asked my advise on LTC 25 years ago, a prudential agent was pushing them to buy. It was so much per day with a max payment of about 135K if I remember correctly. They were only buying it for my mom, she is younger and felt she would take care of dad, but needed someone to take care of her. I recommended they purchase the unlimited benefit or self-insure. They decided to self insure with prudential annuity (i advised against the annuity) but they went forward and it is well over 300K. My dad passed 10 years ago short illness but my mom is doing great and feels she made the correct decision to not buy LTC and I do too.

 

[powerplay]

I have the Federal LTCIP which is currently through John Hancock. It was first offered in 2002 when I signed up while still employed. Every 7 years OPM solicits bids and renegotiates it. The last time only John Hancock bid on it. The two times it has been put out to bid the price has either gone up and/or benefits down. I have kept my premium stable at the cost of a much lower inflation rate, now at 0.9%. It will pay up to $233/day with a max. 5 year payout of $425,000. The contract is up for renegotiation I think in 2023. If it goes up significantly I will likely drop it.

 

[Ebendana]

John Hancock

We purchased John Hancock when it was offered thru workplace 15 years ago...got the lowest daily rate at the time, which is now up to about $325 per day, with roughly $350,000 maximum per person lifetime benefit. It has a return of premium on it, if one of us dies before the age of 70. We have participated in the inflation protection a few times, but are going to keep it where it is, as the premiums are only $99 per month for both of us...one thing we did learn, is that in the State of Florida if you have LTC insurance, you can keep assets equal to the face value of the policy and still qualify for Medicaid...that way you can have money for private nursing, etc...Given we don't have a huge portfolio of money, we feel it is a great peace of mind. We took the majority of our networth and took a lifetime pension, , paid off our house, and plan on starting SS at 62 (when my benefit will be about $2,200 per month, since I was a high earner)...the remaining nest egg we have, we have in very conservative index funds, more like an enhanced emergency fund. We figure if things get tight we can sell a few of our toys, or get part time jobs...61 years old now, DH is 64...we are fortunate that we have retiree subsidized health coverage, although we do pay almost $800 per month for it, but it is a "cadillac" BC/BS PPO Nationwide plan...

 

[HI Bill]

seems like a no-brainer considering the average nursing home stay is 2+ years....so would break even after 1 year.

There's a difference between the average stay, and the average number of days that the entire population will spend in a nursing home:

• Two-thirds of all men, and one-third of all women, age 65 and older will never spend a day in a nursing facility.
• 10% of men and 25% of women age 65 and older spend more than a year in a nursing facility.
• 10% of all nursing facility residents will stay longer than three years.
• More than half of all nursing facility stays last six months or less. The average stay is 18-20 months.

My mom lasted six weeks.

 

[Kathe555]

I bought my policy when I was 42. They don't sell it anymore but I'm glad I got it. It was with UNUM. It has a lifetime benefit with a 5% increase every year. Everyone said I was crazy when I bought it, but now that I'm seeing what's happening with my Dad, I'm so glad I got it when I did.

 

[teej1985]

I have the Federal LTCIP which is currently through John Hancock. It was first offered in 2002 when I signed up while still employed. Every 7 years OPM solicits bids and renegotiates it. The last time only John Hancock bid on it. The two times it has been put out to bid the price has either gone up and/or benefits down. I have kept my premium stable at the cost of a much lower inflation rate, now at 0.9%. It will pay up to $233/day with a max. 5 year payout of $425,000. The contract is up for renegotiation I think in 2023. If it goes up significantly I will likely drop it.

This is what i have as well. I bought it when I started my federal career last year. I was 33 at the time and I pay $72/mo for 5 years of $450/day benefits. I'm kind of kicking myself for not getting the unlimited benefit period, the premium was roughly double what I'm paying. When FLTCIP went from version 2.0 to version 3.0, they got rid of the unlimited benefit period option.

 

[Kathe555]

When FLTCIP went from version 2.0 to version 3.0, they got rid of the unlimited benefit period option.

I don't think any companies are offering unlimited benefit period any more.

 

[teej1985]

I don't think any companies are offering unlimited benefit period any more.

National Guardian still has one: https://www.ngl-essentialltc.com/ConsumerWebNGL//PDF/ELTC Consumer Brochure (NLTC-CB-AZ).pdf

 

[timo2]

I don't think any companies are offering unlimited benefit period any more.

I believe that is correct. DW has hung on to her unlimited, probably until she gets close to 70. She keeps getting offers from CNA to reduce her benefit, and it could be one day she may not have the choice of keeping it, if they alter the premiums in a way to drive people out of the plan.

 

[PJHawk]

Both of us have a hybrid Life/LTC with PacLife. Single premium.

 

[Dash man]

I don't think any companies are offering unlimited benefit period any more.

Ours doesn’t have a time limit, just a dollar limit. Right now it’s over $1M for each of us, so it should last a while.

 

[davidfin]

Ltc plan

Young and stupid purchased a Northwestern Mutual whole life policy at age 34 coincided with birth of child. Paid premiums for about 15 years until annual dividends covered insurance premiums. Haven’t dug into my own pocket since. Fast forward another 15 years to age 60. Turns out accumulated dividends can be used tax free to pay LTC premiums. So 15 years of premiums paid has resulted in paid up life insurance plus continued accumulation of dividends that cover Northwestern Mutual LTC premiums for basically forever.

 

[zippy2020]

Young and stupid purchased a Northwestern Mutual whole life policy at age 34 coincided with birth of child. Paid premiums for about 15 years until annual dividends covered insurance premiums. Haven’t dug into my own pocket since. Fast forward another 15 years to age 60. Turns out accumulated dividends can be used tax free to pay LTC premiums. So 15 years of premiums paid has resulted in paid up life insurance plus continued accumulation of dividends that cover Northwestern Mutual LTC premiums for basically forever.

You lucked out more than you may realize. Northwestern Mutual is one of the best insurers in the business.

 

[Carlos2]

My wife and I bought two LTC policies from Genworth nine years ago at ages 37 and 51 respectively. After a 40% increase, we now pay $4600/year for the two policies. We have a 90 elimination period, but Home health care payments begin right away. The policy currently is to pay $310 per day with a lifetime benefit of $453,000. It has the annual 5% compounded interest rider, covers ASL, SNF and NH. They will make home modifications and provide a care coordinator. Plus, after the first ten years, if neither of us have used our policy the surviving spouses policy is fully paid for. I’m hoping I won’t have to use it.

 

[BeachOrCity]

Bought a policy back in 1990. John Hancock. Premiums are now $22.28 monthly. Started at 7-10 bucks or so but I added benefits for inflation.
440k coverage for $240 per day.
90 day elimination w 2 adl requirement (I think)

I think the biggest risk to this policy is the fact that it was written under the older nursing home standard.

It’s so cheap I can’t see why I would ever give it up. 30 years in no group based increases. I mean even if I pay for 60 years at the current rate it is only like 16k in premiums.

 

[Almost There 2021]

What type of details should I know about when deciding on LTC? Just began the process and have zero knowledge. Age 64/healthy/single/no beneficiaries.
Thank you....

 

[REWahoo]

Age 64/healthy/single/no beneficiaries.

Are you sure you need LTCi? Many who purchase LTCi do so to prevent the possibility of a spouse being impoverished in the event the other had a long stay in a care facility. Who/what are you preserving your assets for if you have no beneficiaries?

 

[Almost There 2021]

To protect savings. Long-term care costs can deplete a retirement nest egg quickly. The median cost of care in a semi-private nursing home room is $89,297 a year, according to Genworth’s 2018 Cost of Care Survey. That money is taxable. $89,297 would actually cost approx. $125,000 in after tax dollars.