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01-26-2021, 07:43 AM
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#1
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Dryer sheet wannabe
Join Date: Mar 2012
Location: League City
Posts: 21
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ltc insurance
Trying to gauge the communities thoughts/opinions on long term care insurance.
Do you have it ? If yes, why ? If no, why not ?
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01-26-2021, 07:50 AM
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#2
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Dryer sheet aficionado
Join Date: Sep 2015
Posts: 43
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Yes, to protect each other in worse case. We have too much for state medicaid and too little to truly self-insure. Will drop after one us dies.
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01-26-2021, 07:59 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Aug 2016
Location: Northern Virginia
Posts: 2,851
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We self insure.
LTC is too expensive these days.
I think life insurance is a better alternative.
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01-26-2021, 08:03 AM
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#4
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Recycles dryer sheets
Join Date: Jun 2011
Posts: 348
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Yes. I have a small low cost policy that I got through a former employer. Benefit is $100/day, three year limit, premium $540 per year. I have it because I am single with very few options for someone to care for me. I look at LTC insurance like I look at social security, it is as a floor of protection.
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01-26-2021, 08:46 AM
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#5
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Full time employment: Posting here.
Join Date: Apr 2008
Posts: 884
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Don't have it. We self insure.
__________________
"Don't you draw the queen of diamonds, boy, she'll beat you if she's able.
You know the queen of hearts is always your best bet" -- The Eagles, Desperado
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01-26-2021, 08:52 AM
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#6
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Recycles dryer sheets
Join Date: Mar 2014
Location: Apex
Posts: 425
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Our home ($400k) is our LTC insurance policy.
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01-26-2021, 08:58 AM
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#7
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Recycles dryer sheets
Join Date: Jul 2016
Location: gypsy traveller
Posts: 292
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Don't have LTC insurance. We were offered a policy about 10 yrs ago as part of an overall financial advisor review by Merrill Lynch. Premiums were, IMO, outrageous for the coverage provided. Like an earlier post, the coverage was capped per day and a fixed number of years. Wife and I opted to self insure.
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LTC isnt like our parents bought
01-26-2021, 09:24 AM
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#8
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Recycles dryer sheets
Join Date: Apr 2017
Location: Winters in N. Scottsdale, summers in Alpine, AZ
Posts: 52
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LTC isnt like our parents bought
LTC coverage. Expensive premiums that go up, while benefits stay the same or go down - as care costs rise. IMO.
We didn't buy a LTC coverage - but we earmarked our primary home (current value ~$600k) as our future self funded LTC piggybank. As we age it will/should go up in value keeping pace with actual LTC costs. If we sell it prior, we put it to work keeping it set aside and separate for that sole purpose.
Maybe not perfect, but gives us some peace of mind.
__________________
“I won't be wronged, I won't be insulted, and I won't be laid a hand on. I don't do these things to other people, and I require the same from them."
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01-26-2021, 09:38 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 11,833
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No. I don't carry LTC insurance. It's to expensive.
The LTC policy I want would start after a year or two of confinement, and go on for life. Since the long wait would make is highly unlikely that I would collect a cent, the rate would be very low. That kind of policy does not exist.
__________________
The worst decisions are usually made in times of anger and impatience.
I hope you are safe and well; neither imprisoned by anxiety nor liberated by foolhardiness.
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01-26-2021, 10:21 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 10,554
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Self insuring, at least at this point. I will look at it periodically in my 60s and 70s but don't really expect to do differently.
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01-26-2021, 10:54 AM
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#11
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Recycles dryer sheets
Join Date: May 2017
Location: Philly Suburbs
Posts: 379
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house as their ltc?
Two replies so far mentioning their house is their LTC insurance.
So, how would that work if one spouse needs ltc and the other spouse is still healthy and living in the house?
Forced to sell or reverse mortgage?
__________________
I'm the exact opposite of my picture :-(
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01-26-2021, 11:13 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Limerick
Posts: 2,987
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We bought LTC through my employer in our 40s, we are now 64. It has an optional inflation adjustment every three years. For both of us this year we paid ~$6,000 for nearly $600/day that would last five years or so. It also covers assisted living and in home care. We’re happy we bought young and when it started it was about $2,000/year cost. Should we die our estate gets a good chunk of the premiums back.
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01-26-2021, 12:03 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Aug 2016
Location: Northern Virginia
Posts: 2,851
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Quote:
Originally Posted by Dash man
We bought LTC through my employer in our 40s, we are now 64. It has an optional inflation adjustment every three years. For both of us this year we paid ~$6,000 for nearly $600/day that would last five years or so. It also covers assisted living and in home care. We’re happy we bought young and when it started it was about $2,000/year cost. Should we die our estate gets a good chunk of the premiums back.
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I think if you can buy LTC as a group policy, either through work or through an association, it is a lot more affordable.
Usual caveats about what happens when you leave employment.
It is "term" insurance. So a large risk is dealing with the price increases which will inevitably come. MIL lived to 93, and every year was tempted to not pay the premium because it was so costly! We had to talk her into it.
Good news is she never needed it
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01-26-2021, 12:42 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Feb 2012
Posts: 1,399
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Self insured. I've never understood buying insurance that the insurer can raise the price at will over the years. If I buy something I want a defined price and product. It seems you don't get either from some of the posts and articles I've read.
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01-26-2021, 12:53 PM
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#15
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Recycles dryer sheets
Join Date: Jun 2016
Location: Grand Junction
Posts: 125
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Quote:
Originally Posted by RetiredAt55.5
Two replies so far mentioning their house is their LTC insurance.
So, how would that work if one spouse needs ltc and the other spouse is still healthy and living in the house?
Forced to sell or reverse mortgage?
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Another self insure here with house as LTC. House is worth > $900K and our yearly spend is ~$180K and growing each year (VPW), so we can easily finance LTC out of portfolio, if necessary. Also, if LTC is necessary, then life ends as we know it anyway.
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01-26-2021, 01:41 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 1,745
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We self insure.
We are just now sorting out LTC benefits for DMIL. For homecare assistance it covers only $87 per day of her $324 daily bill. If she stays in home care for the next year, that amounts to ~$32,000 per year. She likely will not last that long. I don't know if that is more or less than the total of her insurance premiums. I also don't know if her deceased husband also had LTC. I suspect that he did. I do know that he never used LTC benefits at all. His wife was his caregiver. He passed <24 hours from being placed into hospice. We just don't see the payback of LTC. YMMV.
As H20Dude mentioned, getting into a life long contract where the premiums and/or benefits are not fixed at the front end was a non-starter for us.
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01-26-2021, 03:10 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Apr 2005
Location: Midwest
Posts: 2,481
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Self-insuring for the first 2 to 3 years. Then I either die or it's Medicaid or they accept my pension + Social Security, together less than the retail rate, as payment in full and hope I don't live too long.
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01-26-2021, 03:57 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Posts: 1,938
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We purchased LTC policies through Prudential at ages 61/63. We are now 72/74. Premiuns have increased from $4,800/yr(for 2 people) to $8,000/yr. Those premiums will increase further no doubt. The coverage at this point is $320/day for 4 years for each of us and the coverage increases at the rate of 5%/yr. The coverage also can be used for in home care.
Here's the thing. We could easily self insure.........now. Our investment portfolio is mid 7 figures. When we purchased the policies 11 years ago, we had a NW of just under 2 million, a NW that most FA's say warrants purchasing coverage. Now we are outside that window of need, but the premium is not a significant cost to us, so we keep it to preserve the legacy we hope to leave to our children.
__________________
"Luck favors the prepared mind"
Pasteur
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01-26-2021, 04:04 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Limerick
Posts: 2,987
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Quote:
Originally Posted by Golden sunsets
We purchased LTC policies through Prudential at ages 61/63. We are now 72/74. Premiuns have increased from $4,800/yr(for 2 people) to $8,000/yr. Those premiums will increase further no doubt. The coverage at this point is $320/day for 4 years for each of us and the coverage increases at the rate of 5%/yr. The coverage also can be used for in home care.
Here's the thing. We could easily self insure.........now. Our investment portfolio is mid 7 figures. When we purchased the policies 11 years ago, we had a NW of just under 2 million, a NW that most FA's say warrants purchasing coverage. Now we are outside that window of need, but the premium is not a significant cost to us, so we keep it to preserve the legacy we hope to leave to our children.
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That’s how we think. We can easily afford the premiums and want to leave something for the kids and grandkids.
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01-26-2021, 05:18 PM
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#20
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Recycles dryer sheets
Join Date: Mar 2014
Location: Apex
Posts: 425
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Quote:
Originally Posted by RetiredAt55.5
So, how would that work if one spouse needs ltc and the other spouse is still healthy and living in the house? Forced to sell or reverse mortgage?
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My FIL and MIL's exact situation. Both are in a full service retirement community. FIL is in independent living apartment, and MIL is in memory care unit. They had no LTC policy. They used their home's equity to help get into a nice place.
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