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Old 09-22-2021, 06:56 AM   #121
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Originally Posted by Scuba View Post
Many donít have enough assets to add enough such that the nursing home can make enough money to care for the patient. If the insurance company has a low reimbursement rate and the patient canít supplement it sufficiently, the NH may not take them. So LTCI can be helpful as a partial solution for those who canít or prefer not to self-insure, but likely most people will have to at least partly self-insure to get good quality care.
Thanks for the insight.

It's been too long but I don't recall the NH requiring a financial evaluation for my mom. Perhaps they did. In any case, mom DID run out of money - the month she passed. I still give thanks that we never had to deal with Medicade or other NH financing.
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Old 09-22-2021, 06:59 AM   #122
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My parents bought LTC insurance in the mid-90's if I remember correctly. Paid in every month and premiums increased. Sorry, don't have those numbers.
Their policies were/are policies that, once a claim was started and the elimination period satisfied the premiums stop and the payout is until either the claim is stopped or death of said claimant.
Dad's claim was active for about 6 years. Annual payout was about $55k on average. He passed from complications of dementia/diabetes in 2013.
Mom started her claim in 2014. She is legally blind, has a pacemaker, bad knees, and some other issues that require her to have some help. Had been in Assisted Living (3 years there after some surgeries) up until last April but is back at her condo now. The lockdown was HORRIBLE so with her improved health she and I made the decision to move her back to her condo with caregivers and cameras in her home. So far so good.
Mom's average payout from the policy when she was in AL was just over $52k. Her total payout on the claim to date is just over $200k. That would have wiped her out unfortunately, so having the policies for her and dad has been a godsend.
She, to my knowledge, was never given an option to eliminate any annual increase, so her policy's payout goes up each October by 5% (is compounded, so that's nice). Policy pays on a daily basis and she's currently at $220.45. Not quite enough should she need a nursing home or a live-in, but more than enough for her current needs.
We're currently averaging about $700/week (that's CHEAP) for caregiver help and - knock wood - that's plenty right now.
HOWEVER, I live less than 2 miles from her and do quite a bit of fill-in with whatever she needs. It can be stressful at times, but it's been much better all around (ALs for the most part aren't what's advertised, at least not around here....)
AL/nursing home costs are increasing each and every day. Help is hard to find everywhere for all industries, of course driving the costs of everything up. When we were searching for in-home care (mom's policy requires state licensed companies to provide caregivers) most companies wanted $26+/hour for their caregivers. We found one for $20/hour, but of course we've had several bumps in our road with them. Fingers crossed that we have a great caregiver at this point (it's been about 6 weeks and so far so good).
I wish I had purchased a policy like mom's years ago, but in the 90's I was in my 30's - it seemed a little dumb/paranoid to have done so then but now....
And as far as dropping the 5% increase - I personally would keep it and decide the extra expense is worth it. But that's just me.
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Old 09-22-2021, 12:37 PM   #123
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Originally Posted by phil1ben View Post
I believe the majority of people pass without being able to collect anything.

.
According to Genworth and US Govt - 70% will need some LTC - in-home, assisted living, nursing home, or dementia ward.
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Old 09-22-2021, 12:42 PM   #124
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Originally Posted by street View Post
If I paid for the policy for 25 years I would have around 40K in premiums that would be the cost for about 6 months in a nursing home.
80K/year per person is possibly in Louisana but higher everywhere else and rising at ~6%/year. Look at Genworth's calculator.
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Old 09-22-2021, 12:45 PM   #125
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Originally Posted by FLSUnFIRE View Post
I'm still young but do not plan to but I'll adjust course throughout my retirement. My reasoning is that my likelihood of a long stay is low and the probability of my portfolio growing over the next few decades is pretty high (well under 3% WDR) which should cover my needs. I'll also have home equity I could tap if needed. Additionally, I wouldn't be surprised if there are not legislative changes/single payer schemes put in place by the time I get to the age I'd likely need LTC.
If you can predict the likelihood of long-stay as low then you are a genius!
The average is about 3 years. You should look at the Genworth calculator and the projection of the cost to decide how much money you would need.
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Old 09-22-2021, 12:51 PM   #126
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Originally Posted by albireo13 View Post
I am curious about how many folks have bought LTC insurance in retirement?
And at what age?

I am 65, just retired last year, and wife is working another 3 yrs before retiring.
We haven't looked into LTC insurance yet but, I expect we will.

It sounds like a great way to protect yourself ... also a great way to get fleeced if you are not careful!

Would love to hear experiences.

Thx.
We do not have it. The majority of such policies have had to increase the premium or reduce benefits or both and several went bankrupt. The industry did not expect longevity in the beginning and it has created a negative impact.
70% will need some LTC - in-home, assisted living, nursing home, Dementia, etc. The average stay is 3 years but it can be 7-12 years for Parkinson's or Dementia.

Out LTC premium for $125K was ~$2,700/month at age 70. We decided to go to Type-A (Lifecare) CCRC as a hedge against the future cost.
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Old 09-22-2021, 12:55 PM   #127
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Originally Posted by albireo13 View Post
I am curious about how many folks have bought LTC insurance in retirement?
And at what age?

I am 65, just retired last year, and wife is working another 3 yrs before retiring.
We haven't looked into LTC insurance yet but, I expect we will.

It sounds like a great way to protect yourself ... also a great way to get fleeced if you are not careful!

Would love to hear experiences.

Thx.
There are many reasons why LTCi in today's market is not useful. Instead, look for good Type-A (Lifecare) CCRC. Preferably non-profit and with CMS 5 star and Rating agency as A or higher.
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