Poll: Do You Have Long Term Care Insurance?

[Midpack]

I didn’t find a poll, apologies if I missed it.

Unlike traditional health insurance, long-term care insurance is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization, or other facility.

Long-term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating. You can select a range of care options and benefits that allow you to get the services you need, where you need them.

The cost of your long-term care policy is based on:
How old you are when you buy the policy
The maximum amount that a policy will pay per day
The maximum number of days (years) that a policy will pay
The maximum amount per day times the number of days determines the lifetime maximum amount that the policy will pay.
Any optional benefits you choose, such as benefits that increase with inflation.

If you are in poor health or already receiving long-term care services, you may not qualify for long-term care insurance as most individual policies require medical underwriting. In some cases, you may be able to buy a limited amount of coverage, or coverage at a higher “non-standard” rate. Some group policies do not require underwriting.

 

[Car-Guy]

No, self insured.

 

[Spock]

Was going to buy it while working at Megacorp, but their vendor (John Hancock) dropped the offering.
Explored the options available with my professional org (IEEE), but instead of getting access to a calculator type offering to get an estimate they just sic'd a salesperson after me with my contact info.
Most new policies are now capped at how many years they'll pay, etc. Forecasting 30 years of retirement healthcare is exhausting enough... tempted to just go with Medicaid or a .357 when the time comes... maybe by then a more enlightened EOL policy will be in place as the youngsters try to accelerate boomer exits.
Now starting to get hands on experience with them as its getting time for my dad to start using his policy. We'll see.

 

[Dash man]

We both have long term care insurance from a megacorp group plan I signed up for years ago. At the time self insuring didn’t seem possible, but we could now. However, the plan costs have remained relatively low ~$4000/year for both of us and able to adjust for inflation every three years. Since we want to leave an inheritance for our kids, grandchildren and siblings, we are keeping it. Our health history would not qualify us for it again if we did drop it, but at this price it’s a drop in the bucket compared to possible long term care costs.

 

[bingybear]

I looked at LTC when we were considering retiring and found it to be more like pre-paid LTC. OK, you do get "insurance" as you can need it early. If you needed it in your early 80's then you just got your premiums back... give or take. And they only cover for a few years. In general they don't write plans to end of life anymore.

There is two states that have partnership plans that have unlimited asset protection (one is NY, I for get the other) where you can buy a qualifying plan (IIRC a 4 year plan) that meet the criteria and when you exhaust the plan you go on expanded medicaid with your remaining assets protected.

The other issue is the insurer can up rates which makes it more expensive than the original calculation.

 

[greengo523]

We applied for LTC insurance late last year and were turned down. May apply again with another company in the near future.

 

[6miths]

Yes we call them children.

 

[bingybear]

We applied for LTC insurance late last year and were turned down. May apply again with another company in the near future.

That is a bad sign. When I looked I did not apply, but asked questions about how the plan would be effected by may pacemaker and other lesser issues. Without applying I got a response as what they look for so I had an understanding of if I could be insured. IIRC one of the questions was " have you been denied coverage?"

 

[Red Badger]

If DW needs LTC, I'll sell the house. Pensions, SSI, and portfolio are more than enough for me.

Me? Ain't going.

 

[COcheesehead]

As a rider on a life policy.

 

[REWahoo]

Me? Ain't going.

I've seen dozens of similar declarations here over the years. My fiercely independent FIL was equally adamant he would never allow this to happen to him. Then he had a stroke...

 

[SumDay]

Yes, bought it years ago through DH's megacorp, via John Hancock. Truly embarrassed to divulge the premium for both of us. It's gone up some, over the years, but it's still ridiculously low, considering other premiums I've seen.

 

[JoeWras]

Yes. I have it for both me and DW. Frankly, it is more to cover early life issues, say less than 80, than end of life. A friend's DW had an early form of dementia and it would have helped them tremendously.

It is a limited policy in that coverage stops after a certain payout. But that also makes it quite reasonable in price. It would only be an assistance, not a full coverage device.

 

[imoldernu]

Two policies... one for DW and second for me.
Purchased in 1994
Total cost per year for both policies $2100. (mine less than hers)
Total paid since beginning through 2019. Total paid $52,000.00
....................................................................................
Benefits
LTC, Home Care or Assisted Living included $100/day for max of 3 years.
(When we bought, estimate one year LTC cost was $30,000)
....................................................................................
Maximum LTC (skilled) in our CCRC will be $75,000 next year
.....................................................................................
About Long Term Care... Medicare
For the first 20 days, Medicare will pay for 100 percent of the cost. For the next 80 days, Medicare pays 80 percent of the cost. Skilled nursing beyond 100 days is not covered.
....................................................................................
Medicare supplements pay according to the the terms of the agreement, and will vary.
....................................................................................
The average time spent in LTC is 2 years. We estimate 3 years for purposes of planning.
So:
3 x $75,000 = $225,000 Cost for 3 years
3 x $36,000 = $108,000 Benefit for 3 years
...................................................................................
As they say... YMMV... but it is a part of our retirement plan, and the annual cost works out fine with our budget.

 

[Splash]

Self Insure

 

[trumpeting_angel]

I plan to buy a limited policy, and otherwise self-insure. Kind of like a catastrophic health insurance policy used to be.

Anybody heard of this?

https://www.financial-planning.com/...rise-long-term-care-annuities-gain-popularity

 

[Dtail]

I will self insure, but taking a little risk as the funds will probably not be available to me until around 68 y.o.

 

[capjak]

As a rider on a life policy.

+1

 

[misanman]

Self insure.

 

[MarieIG]

No. I am "uninsurable" although I was able to get life insurance for DH through my last job. I am thinking about setting up two very deferred annuities to assist with end of life care if necessary.

 

[joeea]

Yes. My wife and I purchased LTCi just before turning 60.
Premiums have stayed the same since.

 

[bingybear]

I plan to buy a limited policy, and otherwise self-insure. Kind of like a catastrophic health insurance policy used to be.

Anybody heard of this?

https://www.financial-planning.com/...rise-long-term-care-annuities-gain-popularity

I guess I don't see this like a catastrophic plan if I understand it. I would see a catastrophic plan where I would pay the first 2 to 3 years of LTC and the insurance would pay beyond those years. The amount the insurance company could pay would be large, but the likelihood would be small. I would expect the LTC annuity would be like a life insurance with LTC rider. Look at the expenses (that may be hard to find).

How would the annuity compare with a low cost variable annuity (fido/vanguard/schwab) where you could withdraw if you needed funds to pay for LTC?

 

[donheff]

I bought LTC for DW and me when it first became available from the Federal government. Not surprisingly it was too good to be true and the contract/prices had to be restructured several years later. But we modified our plan selections a bit and have stuck with it. We figure having a large customer base with OPM staff available to serve as a neutral watchdog will at least ensure a modicum of reliability. We want to leave a decent pot to our kids/grand-kids and see LTC as estate insurance.

 

[REWahoo]

We purchased LTCI policies in 2000 and saw no increase in premiums until year 14 when they went up 50%. Two years later they went up another 30%. Here is a discussion of my LTCI history in a long-running thread - for anyone who needs a sleep aid: http://www.early-retirement.org/forums/f28/ltc-insurance-premium-surprise-49854.html

 

[big-papa]

Purchased LTC when we were 50. With the insurer we chose age 50 was a magical crossover point for premiums. Anyway, wife's mother, mother's twin sister, brother, and great aunt all had Alzheimers. Seemed prudent. One rate increase since then (the first ever for the company we use). I reduced my coverage enough to make up for the total increase..