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Location: Was Midvalley Oregon; Now Eastside Seattle area
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Originally Posted by eastcoastguyz
What is the current conventional thinking regarding Long-Term Care Insurance? Can you reach a point of wealth that you no longer need to carry LTC? The premiums start out small and increase over time. By then, your wealth should have increased, so does it make financial sense to continue paying the premiums?
Wealth not enough to drop LTCi. Probably will never drop LTCi since it protects our major retirement holding- rental house.
But I think about dropping LTCi every week. Premiums represent ~7% of our gross income.
I made a decision to reduce my coverage by 1/3 on 2022's premium increase, by keeping my premium level until the next increase. Features still hold such as annual 5% benefit increases.
We will tolerate the increased premium on wife's policy.
Also paying premiums for 20 years.
YPMV
Last edited by leastprime; 09-19-2023 at 01:11 PM..
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Just got off the phone with a Westminster representative. Sounds like they are more like Type C. If you need skilled nursing, you would pay market rate less a discount. LTCI would likely help here. Currently, the cheapest unit they offer is a 475 SF studio unit at $75,750, but it is limited to one person. A one bedroom would be $115k for 2. Not sure what would happen if you ever require extensive care but can't afford it (even with the discount). I would not want to take on that risk in my last years.
LTC policies with a life insurance benefit provide a hedge that is valuable to many.
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For a higher cost of course. I almost got one. Then decided to self-insure.
Single. No kids. Who am I preserving my assets for. I have to make sure I'm taken care of first.
I love my siblings nieces and nephews, and some friends -- but they can split anything that's left over.
For a higher cost of course. I almost got one. Then decided to self-insure.
Single. No kids. Who am I preserving my assets for. I have to make sure I'm taken care of first.
I love my siblings nieces and nephews, and some friends -- but they can split anything that's left over.
If you aren't concerned with leaving a legacy or already have enough for legacy, another strategy instead of LTCI might be to wait to annuitize until you need the income for medical care, using a SPIA.
Depends on the contract type. Type A is the most expensive, but covers a complete continuum of care at no additional cost, should you need it. Type C is less expensive, but you will have to pay for skilled nursing and possibly other medical expenses. There are many CCRCs with Type A and Type C models throughout the country. There are many seniors who think they’re getting Type A and really are only Type C. If you’re in a Type C contract, and find yourself unable to pay as result of excessive medical expenses, you could be forced into an undesirable (but lower cost) nursing home at a terrible time.
our area really has no cheap equivalents to a skilled nursing home in ccrc.
they are pretty much only for the wealthy at this point here
Can you reach a point of wealth that you no longer need to carry LTC?
Of course, a recent report says that long term health care costs 160k a year per person, so you going to need about 3 million dollars in investments to cover that, yearly. I would expect health care costs only to increase, to a point that investments no longer cover the full costs and expenses begin to cut into the principal amount, but given that 3 million divided by 160k would last 18 years, even with a 0% return on investment, I highly doubt anyone would live long enough to exhaust there savings before they die.
You probably could get by with less, but then it's a numbers game where the yearly cost of care exceeds the investment return and eating into the principal amount every year. 2 million should give you at least 15 years of care before the saving are exhausted, assuming only one person in care for that starting amount.
Just got off the phone with a Westminster representative. Sounds like they are more like Type C. If you need skilled nursing, you would pay market rate less a discount. LTCI would likely help here. Currently, the cheapest unit they offer is a 475 SF studio unit at $75,750, but it is limited to one person. A one bedroom would be $115k for 2. Not sure what would happen if you ever require extensive care but can't afford it (even with the discount). I would not want to take on that risk in my last years.
The Westminster facility here is a Type A. It's very pricey but everyone I know that knows anyone that lives there says that they just love it. It's not cheap - the smallest entry fee is nearly 130k.
there is a westminster development up near the finger lakes region of new york …that’s is about 5-6 hours drive from nyc .
they are only assisted living , not skilled nursing ….5-6k a month per person .
ironically the company i worked for has a location in that town .
it’s a pretty crappy area with a prison in the middle of the town.
so if a couple you can see double those costs and like i said that is only assisted living.
most affordable CCRC are not going to be up in desirable areas up in the northeast unless far removed from where you would likely want to live
for us they are off the table
Last edited by mathjak107; 09-20-2023 at 02:41 AM..
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