Poll:Will you purchase a LTC Policy?

[fritz]

I'm not surprised that almost 50% who voted here have no use for LTC. IMO it's a costly insurance product that will probably become more costly in the future, not only to new insureds but also the long-time customers.

I'm prepared to self insure on this risk.

+1 as in gambling, odds always favor the house.

 

[donheff]

CalPERS (California Public Employees' Retirement System) offer life time LTC benefit, so we went for it.

The Federal program offers unlimited benefit periods - of course the daily amount is limited.

 

[Brat]

Those who purchase through the Federal program aren't getting any discount (perchance some assume that it is 'a deal'). Some have reported that better buys from equally well qualified insurers are much less expensive. When we purchased LTC the program wasn't in place so I didn't do any research. It is my understanding that if an employer sponsors LTC the insurer waves health review for active employees.

 

[donheff]

Those who purchase through the Federal program aren't getting any discount (perchance some assume that it is 'a deal'). Some have reported that better buys from equally well qualified insurers are much less expensive.

Maybe. When we signed up my father in law (who qualified through me and his son) went with another carrier for less. A month later (two days before the Fed open season closed) he called alarmed that his carrier was changing the rates. He bailed on them and went with the Fed program with minutes to spare. The reason I went with the Fed program is I know that OPM is negotiating with the carriers and watching for duplicitous practices. FIL ended up using this insurance without any problems. I suspect you could do as well with another reputable carrier but I found it easier and more comfortable to trust the Fed program.

 

[eytonxav]

I am in the self insure camp and have $ set aside. Additionally, I will take the Kevorkian route for me if anything terminal crops up that could be protracted and miserable.

 

[Brat]

I agree, OPM holds vendors feet to the fire. Perhaps that is why they charge more.

 

[flyfishnevada]

With my pension, I am hoping we only need some kind of supplemental plan. Both me and my DW have a lot of longevity in our families, but stays in LTC have always been short for our relatives. Of course that's no guarantee. I'm only 45 and DW is only 42 so we have sometime to figure it out.

 

[youbet]

I found it easier and more comfortable to trust the Fed program.

It should be made available to all citizens.

 

[donheff]

It should be made available to all citizens.

So should the Federal Employees Health Benefits program. My nephew pushed that when he ran for congress in 1992.

 

[youbet]

So should the Federal Employees Health Benefits program. My nephew pushed that when he ran for congress in 1992.

I recall you mentioning that previously. Yes, I agree. The Federal Employees Health Benefits program should be available to any citizen on a cost + small admin fee basis, similar to COBRA.

 

[Brat]

The problem with the OPM health insurance is that employees must subscribe at hire, or prove that they have insurance through a spouse, else they cannot re-enter the program. If it were opened up for all there would be the problem of adverse selection actuarily(sp?).

When we require everyone to have health insurance I have no problem with the program, as a separately rated pool, be offered. In all honesty, without the employer's contribution, it is very expensive. A married couple pay more than two individuals because family coverage is intended to cover children as well.

As a married retiree with medicare Kaiser's insurance through OPM is much more expensive than the comparable Kaiser Medicare + for two persons offered to my community. Go figure.

 

[misty57]

Chalk me up as another one who opted to self-insure. We don't like the idea of paying premiums and a company going under or the premiums skyrocketing with little notice.

 

[73ss454]

I'm also self insuring but I don't have a good reason why.

 

[Live And Learn]

I finally decided and went with the self insure route. I've set aside 7 months of a semi-private room for both DH and I (aka - 14 months expense in total). I figure that one of us may end up longer term but with no heirs they can take my home value as payment. By that time I'll be senile and will pray that the end come quickly.

 

[pb4uski]

I'm thinking of designating (in my mind anyway) our HSAs as a tax efficient self-insured funding for LTC since an HSA can be used to pay for nursing home care and I can designate my spouse as beneficiary (and vice versa). Instead of paying LTC premiums, I'll make HSA contributions. I currently pay for health care from taxable funds and am building my HSA as an adjunct to our Roth IRAs.

Is anybody else thinking of doing this? Any pitfalls you can think of other than if the funds are not used and we both pass the balance will be taxable to our heirs or estate?

 

[REWahoo]

I'm thinking of designating (in my mind anyway) our HSAs as a tax efficient self-insured funding for LTC since an HSA can be used to pay for nursing home care and I can designate my spouse as beneficiary (and vice versa). Instead of paying LTC premiums, I'll make HSA contributions. I currently pay for health care from taxable funds and am building my HSA as an adjunct to our Roth IRAs.

Won't the limits on annual HSA contribution amounts limit creating a substantial LTC nest egg? You are aware you can no longer add to your HSA once you go on Medicare?

 

[pb4uski]

It would limit it somewhat, but if a couple of the same age started at age 50 and contributed the max until they were age 65 when they go on medicare I think they could have $260k at age 75 (assuming a 5% return), which combined with the SS they would then be receiving would help.

But you are right, it wouldn't fully fund it.

 

[Nords]

I finally decided and went with the self insure route.

What are you using for an inflation rate?

Because my father's care facility really doesn't want to share whatever clues they have.

 

[Live And Learn]

What are you using for an inflation rate?

Because my father's care facility really doesn't want to share whatever clues they have.

I'm setting the total dollars aside today and assuming that investment growth covers inflation (probably a bad assumption, I know ! )

 

[Nords]

I'm setting the total dollars aside today and assuming that investment growth covers inflation (probably a bad assumption, I know ! )

Well, it's better'n doing nothing.

I suspect that care facility inflation is mostly local anyway.

 

[misanman]

Here's another recent opinion -

Why long-term care insurance may become extinct - CBS News

 

[MBAustin]

I just got a letter in the mail saying that Prudential (my LTC carrier) will no longer issue new LTC policies. They aren't dropping the current policyholders, but won't sign up new ones. This seems to be a trend.

 

[REWahoo]

I just got a letter in the mail saying that Prudential (my LTC carrier) will no longer issue new LTC policies. They aren't dropping the current policyholders, but won't sign up new ones. This seems to be a trend.

Yep, got a similar letter from my LTC carrier (CNA) nine years ago.