CCRC refundable entrance fee options

It's true that LTCi companies didn't do a good j*b of predicting how many people would pay for a long time and then drop out so those who did hang on saw their rates go up.

Keep in mind that that doesn't happen without the approval of State Insurance Boards (or whatever they are called.). Also, if an LTCi provider goes bankrupt, their policies are purchased by other companies so you don't lose your policy.

No apologist for the LTCi industry, but no need to panic about LTCi policies in force though premiums may, indeed rise. YMMV
If state insurance boards don't approve rate increases, some of these will go out of business. Even with rate increases, some won't make it. Currently, the insurance industry is not being seen in a favorable light by many so rate increases are certainly not a given. Also, there's no guarantee that a bankrupt insurance company will be purchased by another insurance company. Even if acquired, there's no guarantee of the financial condition of the acquiring company.
 
If state insurance boards don't approve rate increases, some of these will go out of business. Even with rate increases, some won't make it. Currently, the insurance industry is not being seen in a favorable light by many so rate increases are certainly not a given. Also, there's no guarantee that a bankrupt insurance company will be purchased by another insurance company. Even if acquired, there's no guarantee of the financial condition of the acquiring company.
There is state guarantee with a limit of 250K to 300K per LTCI policy (by company), depending on the state.
 
This amount will not go very far if one lives for an extended period of time.
Better than $0 after paying years of premiums. My LTCI coverage is about $700K and our state guarantee is $300K. I have only paid only about $20K in premiums after 16 years.
 
I don't know of any LTCi providers who handle nothing else. While a big life insurance company can get into trouble, most LTCi providers are backed up by lots of other insurance business. They're figuring out LTCi now and know how to price it a lot better.

I'm not too worried about these LTCi policies "defaulting." For the most part, the regulators are dealing with it.

Too many other things to worry about IMHO though YMMV.
 
Provisions vary. I looked at a place near Des Moines last month and they have two buy-in options. The higher one is 90% refundable, NOT contingent on reselling the unit, and applies when you leave the unit- death, move elsewhere, enter LTC. The lower IS amortized over a specified period- 2 years?- with no more due after that. They have LTC and that costs $13K/month. In between, they charge per service for additional things like help with medications, help bathing, or just having an attendant on an hourly basis (which gets expensive fast).

I prefer the larger buy-in because I want maximum flexibility. If things go downhill I want out without too much financial loss. If their LTC facility is full and they want to farm me out to a place 4 hours away (DS and family are in Des Moines) or it's a nightmare, I can go elsewhere.

Checking out another on Monday since I'm here visiting. This one has an indoor saltwater pool. I'm grateful I have options. News feed this morning (knowing my location) just showed an item on cases of neglect in some of the nursing homes in a couple of small towns in Iowa.
Given the fear of a bankruptcy, however small, I like the idea of the smaller non refundable buyin. You lose a lot less if that happens and maybe you have enough to buy into another one. ☝️

The big issue is we are unsecured creditors to the CCRC. A place I would never allow myself to be in any other situation.
 
Given the fear of a bankruptcy, however small, I like the idea of the smaller non refundable buyin. You lose a lot less if that happens and maybe you have enough to buy into another one. ☝️

The big issue is we are unsecured creditors to the CCRC. A place I would never allow myself to be in any other situation.
I'd pay for home health care before I gave a CCRC a huge amount of money. But that's just me.
 
I'd pay for home health care before I gave a CCRC a huge amount of money. But that's just me.
I get it, if you have somebody like family to manage the home healthcare for you then you’re fine. But if you don’t have somebody to manage it then it may not work. Care management when we’re a lot older isn’t easy if we’re sick or we have dementia etc. There are many stories on this forum of people having problems managing care for their parents, etc. Now you can imagine them trying to do it for themselves.
 
I'd pay for home health care before I gave a CCRC a huge amount of money. But that's just me.
I guess we'd all prefer home health care, but the expense is probably double or triple what it costs in a "facility" designed for such care.

It could w*rk out, but one had better have "over saved" if one is lucky (unlucky??) enough to live a long time while needing specialized care.
 
I get it, if you have somebody like family to manage the home healthcare for you then you’re fine. But if you don’t have somebody to manage it then it may not work. Care management when we’re a lot older isn’t easy if we’re sick or we have dementia etc. There are many stories on this forum of people having problems managing care for their parents, etc. Now you can imagine them trying to do it for themselves.
All that's left in my family is my 44 year old daughter (no children by her) and her husband. My daughter has already said she would be there for me like she was for her mother. Now it may not work, but that will be the first approach.

There is no history of lingering deaths in my family. All went quickly from kidney failure, liver failure, brain cancer, and one died in his sleep. Maybe I will get lucky.
 
All that's left in my family is my 44 year old daughter (no children by her) and her husband. My daughter has already said she would be there for me like she was for her mother. Now it may not work, but that will be the first approach.

There is no history of lingering deaths in my family. All went quickly from kidney failure, liver failure, brain cancer, and one died in his sleep. Maybe I will get lucky.
We'll hope you get lucky - just not too soon! :cool:
 
Back
Top Bottom