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Old 01-09-2017, 05:01 PM
 
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Quote:
Originally Posted by reneeh63 View Post
You must be joking! At the rate I was quoted I'll have paid in more than $125k by the time I'm 75 (that's about 20 years)! That's with 5% premium increases each year but no other lump increases. I'll have put in more than $250k by the time I'm 85...and I have some very long-lived and healthy relatives.

As for a masseuse and "paid company" I guess I haven't planned for that kind of "happy ending".
I like that, clever and well done.
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Old 01-09-2017, 06:23 PM
 
Location: Florida -
8,767 posts, read 10,851,233 times
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Quote:
Originally Posted by reneeh63 View Post
But what is it about your policy that gives you peace of mind? You are that certain that it will cover what you'll need? Or is it such a small expense in your overall budget that you're not that concerned.

I have limited resources as a single woman and I can't throw hundreds of dollars a month at an LTCi unless I get full value from it - it would mean that I could NOT put that money in a 401(k) or Roth. Obviously, if you're fully funded and have "extra" money an LTCi is a no-brainer but I will have to make a very real choice for one thing over something else.

My rationale is that increasing longevity also increases the likelihood that either my wife or I (or both) will likely need LTC at some point. After watching that happen to many couples over the years, it seems apparent that the caretaker role among the elderly tends to shorten the life and undermine the lifestyle of the caretaker, even more than the one being care for.

Further, since we do not qualify for medicaid or other government give-aways, we will be faced with paying for our LTC needs out-of-pocket. The alternative is to become a burden on the 'kids' (who will be entering their own retirement) - with a possible level of personal care that would be unpalatable in terms of our personal dignity and the negative effects on their retirements. Our indexed LTCI policies also allow for home care alternatives AND let us use the cumulative number of years on our policies for either/both of us.

Finally, the 20-year premium cost of our combined LTC policies is about equal to today's cost of one-year nursing home stay ($80K; and those costs are only going to increase). I don't have a crystal ball and can't see the future of our health conditions or LTCI policy status. But, common sense tells me that we're not going to get healthier or better able to take care of ourselves or each other - in our later years ... plus healthcare costs are only going to increase.

Will our LTCI policies still be there? Will healthcare costs far exceed the benefits of our policies? Will we actually need/use the policies? - There are no guarantees, but, isn't that the very essence of insurance? Thus, LTCI policies with a large, reputable company, give me some peace of mind in knowing I'm doing whatever I can to at least partly offset the increasingly probable negative effects of our future LTC needs.

(BTW, everyone has 'limited resources' and a 'fixed income' at some level).

Last edited by jghorton; 01-09-2017 at 06:34 PM..
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Old 01-09-2017, 06:59 PM
 
Location: Central IL
15,251 posts, read 8,543,297 times
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Quote:
Originally Posted by jghorton View Post
My rationale is that increasing longevity also increases the likelihood that either my wife or I (or both) will likely need LTC at some point. After watching that happen to many couples over the years, it seems apparent that the caretaker role among the elderly tends to shorten the life and undermine the lifestyle of the caretaker, even more than the one being care for.

Further, since we do not qualify for medicaid or other government give-aways, we will be faced with paying for our LTC needs out-of-pocket. The alternative is to become a burden on the 'kids' (who will be entering their own retirement) - with a possible level of personal care that would be unpalatable in terms of our personal dignity and the negative effects on their retirements. Our indexed LTCI policies also allow for home care alternatives AND let us use the cumulative number of years on our policies for either/both of us.

Finally, the 20-year premium cost of our combined LTC policies is about equal to today's cost of one-year nursing home stay ($80K; and those costs are only going to increase). I don't have a crystal ball and can't see the future of our health conditions or LTCI policy status. But, common sense tells me that we're not going to get healthier or better able to take care of ourselves or each other - in our later years ... plus healthcare costs are only going to increase.

Will our LTCI policies still be there? Will healthcare costs far exceed the benefits of our policies? Will we actually need/use the policies? - There are no guarantees, but, isn't that the very essence of insurance? Thus, LTCI policies with a large, reputable company, give me some peace of mind in knowing I'm doing whatever I can to at least partly offset the increasingly probable negative effects of our future LTC needs.

(BTW, everyone has 'limited resources' and a 'fixed income' at some level).
If I could ask, how do you know in advance what your premiums will be for the first (or next) 20 years? Did the insurer guarantee no increases or set increases? My quote didn't include any limit so if I start at $300 a month, for a SINGLE policy, and assume 5% increases each year I come up with at least 50% higher amount than what you give...Now, that may end up being a couple years of SNH care in my area. But, I could easily be paying in for 30 years.
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Old 01-09-2017, 07:05 PM
 
Location: Baltimore, MD
3,745 posts, read 4,220,203 times
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^^^^^^
I've never heard of anyone having premium increases every year and certainly not 5%/year. Am I misunderstanding this?
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Old 01-09-2017, 08:41 PM
 
Location: Central IL
15,251 posts, read 8,543,297 times
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Quote:
Originally Posted by lenora View Post
^^^^^^
I've never heard of anyone having premium increases every year and certainly not 5%/year. Am I misunderstanding this?
I don't KNOW that the premium of the policy I'm looking at would increase by 5% every year but I've heard of outrageous lump increases so I'm trying to build that in for budgeting purposes. Here's just a few things I googled on fairly recent articles about LTCi rate increases:

Long-Term Care Insurance Company Rate Increase Histories

Why Long-term Care Insurance Is Becoming a Tougher Call | Money

Mostly specific to Texas:
Forbes Welcome

Long-Term Care Insurance Premiums Rise Almost 9 Percent | ElderLawAnswers

https://www.bostonglobe.com/business...9yJ/story.html
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Old 01-10-2017, 01:56 AM
 
71,663 posts, read 71,801,099 times
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Quote:
Originally Posted by lenora View Post
^^^^^^
I've never heard of anyone having premium increases every year and certainly not 5%/year. Am I misunderstanding this?
we have our policy's 3 years . first year we saw about a 5% increase as older increase requests were finally approved . no increase the next 2 years . we have been paying the same premium .

costs were greatly miscalculated early on . there were far more in claims and usage than statistics showed . so it looks like they finally reached a state of balance now
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Old 01-10-2017, 08:39 AM
 
118 posts, read 140,851 times
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I have been keeping up with this thread out of interest, but as an outsider looking in. I have not even looked at LTCi since I am most likely uninsurable due to a pre-existing inherited neuropathy that has been symptomatic since childhood. At 58, I currently wear leg braces, have a hand splint and use a rollator.

So, not many options except to self-insure. Lots of us out there with inherited conditions that make LTCi insurance almost impossible to acquire. So, when the time comes, being prepared to buy into a continuing care facility and make the monthly payment seems like a good option to me. That is what I have asked my husband we plan for financially. In the meantime, I try to keep myself as healthy and active as possible to slow down the inevitable progression of the disease.
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Old 01-10-2017, 08:46 AM
 
71,663 posts, read 71,801,099 times
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You likely can get a linked benefit life policy . They usually provide 2x the benefit for long term care .

It does require plunking down a lot of money though with very low return , if any . The interest pays for the ltc insurance portion
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Old 01-10-2017, 09:05 AM
 
118 posts, read 140,851 times
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Quote:
Originally Posted by mathjak107 View Post
You likely can get a linked benefit life policy . They usually provide 2x the benefit for long term care .

It does require plunking down a lot of money though with very low return , if any . The interest pays for the ltc insurance portion
Interesting. Thanks for the info. Will add it to the list of things to evaluate. But you weren't kidding on the premium to purchase the policy being a "lot of money"! Wowza! It's on par with a buy-in fee for a mid-range continuing care facility.
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Old 01-10-2017, 09:07 AM
 
71,663 posts, read 71,801,099 times
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but your heirs get that money , or you can take it out any time if you want it. it is life insurance with a perk. they double the death benefit for care .
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