Top Ten Reasons LTCi Doesn't Make Sense ... For Most People (pensions, divorce)
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if i wanted to take the time i can dig up just as many articles that are pro all the benefits of having a policy and plan . especially because the plans today are nothing like the older plans which had loop holes and outs all over the place for the insurer .
today the plans are quite simple ,especially the ones that are state sponsored partnership plans .
as i said if you are looking at a state partnership plan the insurance coverage may be the tiniest part of why you would buy it . i couldn't give a rats butt about the 3 years coverage in a snf i get . i bought it for all the perks and deals after the insurance runs out , which go on for a life time .
that is why reading these articles can be meaningless . it all depends on what kind of policy and why you are buying it .
if we had to shift assets in to non revocable trusts so when the insurance ran out we can preserve them and ended up cutting each other off from direct control of our assets that would suck . if the stay at home spouse had income restrictions on them too on top of getting cut off from half the assets , that would suck too .
so the partnership plans offer far more than a few years coverage . the reason for buying a plan can be all about the deal you get after that few years of insurance is up .
once again those who have no interest in plans likely have no knowledge of them either , except the bits of pieces of information they may get from others who support their view and may be just as ill-informed .
i can guarantee you that those who speak out against buying a plan have zero knowledge about what partnership plans in other states give you and why they can be great deals not for the insurance coverage part .
Last edited by mathjak107; 10-22-2016 at 03:01 AM..
Whether or not you get LTCi you absolutely need to have a plan. It don't need to be detailed. It don't even need to be viable. You really won't know until you need it or not. Everyone has a different situation and LTCi plans reflect that. mathjak has said as much in many of these discussions. It is a hot button topic here and many can be confused by misleading information or information that is outdated and irrelevant. The real question is actually two. Can you afford it? Can you afford not to have it? Putting those two questions to your own lives and circumstances is probably the best thing you can do. The reasons are simple. If you think on those two questions and you gather the information in your finances to decide one way or the other. You formulate a plan for each. Just the gathering of your facts. Not someone else's facts, yours. Only then can you really see if LTCi is right for you.
I posted this point on this thread a week ago I think. I had been up in the air about whether or not to get LTCi. I am one who can get a plan still based on my employment. I can afford it but the premiums might limit some of my flexibility. I can also afford not to and still not be relegated to Medicaid. So as I reasoned out my next 10 years. I figured out that should I not get it and I am lucky I will have a larger legacy to pass on. If I do need it. My legacy would be less but that would also give my only child the freedom to not have to mortgage herself for us. Either way we do make out better not getting it but setting aside a large sum of money tax free not tax deferred into our own account and enjoying the freedom it gives us. We will not have insurance payments of any kind except health insurance and sufficient income to be totally free to travel and enjoy life.
I can afford it but the premiums might limit some of my flexibility. I can also afford not to and still not be relegated to Medicaid.
I'm figuring an average of $200 a month for 30 years of coverage. $200 a month does not limit my flexibility but $200 a month will not keep me from Medicaid. How will you accomplish this?
I'm figuring an average of $200 a month for 30 years of coverage. $200 a month does not limit my flexibility but $200 a month will not keep me from Medicaid. How will you accomplish this?
For me it was a matter of figuring out what my plans were once we sold our home here. Were we going to immediately buy a new house somewhere or were we going to travel? After consideration we had always planned on taking time and seeing the world. So in 5 years we sell the house. The house is mortgage free and is valued at about 400k now. In 5 years I do not see a complete collapse of the market making the house value between 300k and 500k. I lean towards the middle and keep the value of the house steady. Investing that money into interest bearing accounts allows us to set aside the funds for future use. We will have net income in retirement that is equal to our net income now. I and the wife have savings as well in tax deferred accounts that we will be using to enjoy even a nicer bit of travel. With no car payments, car insurance, home owners insurance, life insurance, property taxes, electric bill, water bill, heating oil, gas for the cars, maintenance on the house and cars. I think we can truly say we do not need the LTCi. We are not multi millionaires. But we feel we can enjoy life like we are. Just to let you know our combined income to include both of our SS and pension income is just under 80k (not included here are payments from 401k). If we cannot travel on 80k a year and still have money to play with we are doing something wrong. After thinking about ages and things we figure that our next home will be in our 70s. Probably mid 70s.
one thing we don't want to do is make our care the responsibility of our kids .
i can tell you with my dad there was no way anyone of us could have taken care of him in our home .
usually by the time snf is needed it is well beyond family .
how it typically plays out is a family member gets hurt trying to move 200 lbs of limp flesh if they are moving someone paralyzed from a stroke and they are both in trouble or the person becomes violent with memory issues and someone gets hurt ...
the best way to bust up a family is have one sibling step up to the plate and take in a parent who needs care . odds are the other siblings step back and the battles begin .
usually the person providing the care takes a monetary hit , a career hit , a social hit and maybe even loses a job .
if you have a spouse odds are you can kiss that marriage good bye once the spouse starts on why do we have to do it and sacrifice so much and your brothers and sisters do nothing .
one of the worst things parents can do to their kids is drop their long term care burden on their children . that never ends well .
Last edited by mathjak107; 10-22-2016 at 07:17 AM..
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