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ltc insurance
Old 01-26-2021, 07:43 AM   #1
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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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Old 01-26-2021, 07:50 AM   #2
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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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Old 01-26-2021, 07:59 AM   #3
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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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Old 01-26-2021, 08:03 AM   #4
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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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Old 01-26-2021, 08:46 AM   #5
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Don't have it. We self insure.
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Old 01-26-2021, 08:52 AM   #6
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Our home ($400k) is our LTC insurance policy.
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Old 01-26-2021, 08:58 AM   #7
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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
Old 01-26-2021, 09:24 AM   #8
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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.
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Old 01-26-2021, 09:38 AM   #9
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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.
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Old 01-26-2021, 10:21 AM   #10
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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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house as their ltc?
Old 01-26-2021, 10:54 AM   #11
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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?
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Old 01-26-2021, 11:13 AM   #12
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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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Old 01-26-2021, 12:03 PM   #13
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Quote:
Originally Posted by Dash man View Post
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.
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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Old 01-26-2021, 12:42 PM   #14
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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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Old 01-26-2021, 12:53 PM   #15
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Originally Posted by RetiredAt55.5 View Post
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?
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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Old 01-26-2021, 01:41 PM   #16
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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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Old 01-26-2021, 03:10 PM   #17
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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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Old 01-26-2021, 03:57 PM   #18
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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.
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Old 01-26-2021, 04:04 PM   #19
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Quote:
Originally Posted by Golden sunsets View Post
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.


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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Old 01-26-2021, 05:18 PM   #20
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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?
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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