Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am an independent insurance broker and among other lines, I do represent long term care companies. Most of my LTC clients buy their policies between the ages of 55 through 70. Usually people in their 40's have more pressing financial concerns (house, childcare, college, etc...). Of course, you do run the risk of health changes that would eliminate the ability to purchase the policy later.
Skaternum mentions the non-forfeiture feature, where you get credit for for a partial benefit if the policy is lapsed. These are very expensive riders and I have never sold this feature.
A long term care policy is not for everyone. I always caution would be buyers that you are making a committment to paying for this the rest of your life. If you can not afford it, then you would likely qualify for Medicaid.
However, I would disagree with the strategy in the Money Watch article. Using your home equity and 401k can deplete the savings and quality of life for the surviving spouse an still be woefully short of what is needed.
Some quick stats: The area where I live (NY), the average cost of a facility is over $350 per day. THe average length of stay in a facility is 2.5 years. Nursing home costs are rising about 5% per year. The likelihood of needing LTC for someone at age 65 is 33% for men and 50% for women.
The whole point of Long Term Care insurance is to keep you OUT of a nursing home as long as possible. While it does pay for nursing home care, the real benefit is from being able to have IN-HOME care, which people typically have before they go into a nursing home. Also, one reason why men have a lower claim rate is because their WIVES take care of them as long as they are physically able. With society today, kids and parents no longer living in the same town, the support system that the elderly have today is not going to be around in 10 years. I would also, NEVER want my kids to feel like they HAVE to take care of me if needed. I want options for my kids. How many people do you know that are caring for an elderly relative--and being physically and mentally drained by doing so?? THESE are the reasons you buy LTC.
I didn't know where else to post this so Mods., if this is innapropriate, please relocate to the correct forum.:
A few years ago (in my 40's) I invested in a long term health insurance policy to cover my expenses in case of a catastrophic illness/accident and so that I could live with dignity rather than in a Medicaid/Medicare funded nursing home in my final years. The policy is with a very reputable whole life insurance company which has always been financially sound and able to pay dividends to its policy holders.
That said:
Does anyone know how the potential Nationalized Healthcare will affect such policies and policy owners? Is it a waste to continue to invest (a.k.a pay my premiums) into it once the foundation for single payer health insurance is passed into law; or, might this help me avoid being forced to "take the blue pill" under rationed medical care?
My agent has no answers so I don't know that I'll get any here. But, if anyone has expertise in this area I'd appreciate opinions.
We just had a insurance sales person trying to sell us LTC Insurance. I have spoken to many people in the health field who tell us it is a waste of money. Many places do not except it and the only people that make out are the insurance companies.
Not sure what you are referring to Blue Diamond. Long term care policies are not network based so I don't know who would not accept it. Its certainly not a waste of money to recipients who qualify for much needed care.
We just had a insurance sales person trying to sell us LTC Insurance. I have spoken to many people in the health field who tell us it is a waste of money. Many places do not except it and the only people that make out are the insurance companies.
There is not "accepting" Long Term Care plans, they are reimbursement plans, you get billed for $6000/month for your home health aid, submit the bill to your Long Term Care company, they send you a check for $6000, you pay your bill.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
