Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I know parts of my questions have been discussed (in general terms) in other threads e.g. http://www.early-retirement.org/forums/f38/more-on-long-term-care-insurance-32299-2.html
I just got a big increase in my (and DW's) Bankers Life LTC premium (35%). I called the company and they assured me (as I was already aware) that this was not specific to me but to all holders of similar policies. We have had this policy for 10 years and the premium has increased from roughly $1900/yr for both of us to now over $3500/yr. About every 3 years we get an increase, but this one was a doozy. The rep I spoke with assured me that the State of issuance had approved the increase.
I insulted her company (in a nice Christian way as Larry the Cable Guy would say) by suggesting their actuaries must not be very good if they missed the mark by that much over the past 10 years. I also suggested that they were just trying to get out of the business by raising the rates until most folks finally quit paying premiums.
(In a nicer, more Christian way than I had used) she assured me that this was not the case. They intended to stay in the business of offering LTC policies.
Bottom line is that I must now decide whether to keep the policy or drop it. The fact that I've paid premiums over the past 10 years isn't that much of an issue to me. Those are gone and I did have the coverage - though not needed, thankfully. I'm more concerned about whether this policy is worth the roughly $250,000 life-time benefit (each person so that's about $500,000 for both). The daily and total coverage increases 5%/year and that was built into the premium when purchased.
I'm also concerned about similar increases every 2 or 3 years. My policy is relatively unique in that it is qualified to protect my assets even if I exhaust the policy benefits (3 years as I recall) and must go on Medicade. Only 4 states offered this when I bought the policy and I don't know if others have joined in. These 4 states figured they would come out ahead, paying Medicade to folks who managed to survive 3 years of insured stays in a facility rather than beginning Medicade payments much earlier (because folks had no insurance and therefore would quickly go through their savings.)
Anyway, I'd probably drop the coverage at this point if it weren't for the fact that 3 out of DW's and my 4 parents ended their days in NHs due to dementia of one kind or another.
Please exclude the argument for self-insurance (on the basis that I do have a decent retirement "stash") because I'm a belt and suspenders kind of guy. What would be your thinking on MY pros and cons to staying with the program. DW and I are 62 +/- I'd say we have a better than average chance of needing a NH or qualified home care (also covered to a lesser extent by this policy).
None of this makes the difference of whether I go back to w*rk or eat cat food in my waning days, but, as Roseanne Rosanadana would say "It's always something." That much money will affect my lifestyle to some extent.
Any thoughts from those with insight - or especially in similar circumstances - would be appreciated.
I just got a big increase in my (and DW's) Bankers Life LTC premium (35%). I called the company and they assured me (as I was already aware) that this was not specific to me but to all holders of similar policies. We have had this policy for 10 years and the premium has increased from roughly $1900/yr for both of us to now over $3500/yr. About every 3 years we get an increase, but this one was a doozy. The rep I spoke with assured me that the State of issuance had approved the increase.
I insulted her company (in a nice Christian way as Larry the Cable Guy would say) by suggesting their actuaries must not be very good if they missed the mark by that much over the past 10 years. I also suggested that they were just trying to get out of the business by raising the rates until most folks finally quit paying premiums.
(In a nicer, more Christian way than I had used) she assured me that this was not the case. They intended to stay in the business of offering LTC policies.
Bottom line is that I must now decide whether to keep the policy or drop it. The fact that I've paid premiums over the past 10 years isn't that much of an issue to me. Those are gone and I did have the coverage - though not needed, thankfully. I'm more concerned about whether this policy is worth the roughly $250,000 life-time benefit (each person so that's about $500,000 for both). The daily and total coverage increases 5%/year and that was built into the premium when purchased.
I'm also concerned about similar increases every 2 or 3 years. My policy is relatively unique in that it is qualified to protect my assets even if I exhaust the policy benefits (3 years as I recall) and must go on Medicade. Only 4 states offered this when I bought the policy and I don't know if others have joined in. These 4 states figured they would come out ahead, paying Medicade to folks who managed to survive 3 years of insured stays in a facility rather than beginning Medicade payments much earlier (because folks had no insurance and therefore would quickly go through their savings.)
Anyway, I'd probably drop the coverage at this point if it weren't for the fact that 3 out of DW's and my 4 parents ended their days in NHs due to dementia of one kind or another.
Please exclude the argument for self-insurance (on the basis that I do have a decent retirement "stash") because I'm a belt and suspenders kind of guy. What would be your thinking on MY pros and cons to staying with the program. DW and I are 62 +/- I'd say we have a better than average chance of needing a NH or qualified home care (also covered to a lesser extent by this policy).
None of this makes the difference of whether I go back to w*rk or eat cat food in my waning days, but, as Roseanne Rosanadana would say "It's always something." That much money will affect my lifestyle to some extent.
Any thoughts from those with insight - or especially in similar circumstances - would be appreciated.