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Old 05-30-2017, 04:19 PM
 
71,520 posts, read 71,694,121 times
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Quote:
Originally Posted by LTCShop View Post
That "article" is an advertisement.

The Life/LTC "hybrid" policies that require a large, single premium deposit, are usually a LOUSY deal for the consumer, but a great deal for the insurance company. Here's why:

1) The insurance company keeps most of the investment earnings on the money. After deducting fees and expenses from the "credited interest rate", the growth in the cash value is negligible (usually less than 1%).

2) When long-term care is needed, the insurance company uses the single premium deposit to pay towards the cost of your care first. They use your money first before using their own money.

3) Most of these policies have no inflation protection. When it is time to make a claim the policies rarely cover the full cost of care. This means that the buyer has to pay even more of their own money towards the cost of care.

4) Between the single premium deposit and what they have to contribute to the cost of their care, the buyer usually has to cover the full cost of his/her care for at least the first 24 months of care.

A fee-only financial planner recently described his experience with these products as "nothing more than mediocre life insurance combined with mediocre LTCI".

I've calculated that if someone can safely earn 3% on their money, they are much better off keeping the single premium in their own investment portfolio, earning money on it, and then using a portion of their investment earnings to buy a traditional LTCi policy with inflation protection.

However, there are some Life/LTC hybrid policies that do not require a single premium. For example, a level premium can be paid for 20 years and then the policy is paid up with no future premium payments required. This type of Life/LTC policy can be a very good value especially for females or for someone who purchases the policy in their forties or early fifties.
so how do the level premium policies work day 1 ? you give them a 250 buck a month premium and year 1 need care . what do they cover for that 250 bucks ?
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Old 05-30-2017, 05:02 PM
 
71,520 posts, read 71,694,121 times
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Quote:
Originally Posted by LTCShop View Post
Assets is not the most important issue when deciding about LTCi.
Income is the most important issue.
Very few couples can "self insure" without a significant lifestyle change for the healthy spouse.
Relying on the sale of the "primary residence" to fund long-term care is a plan fraught with pot holes.
our estate attorney's practice is dominated with self insurers .

as tyson said , everyone has a plan until punched in the face .

once the stay at home spouse realizes how easy those self insuring assets can dwindle they generally go in to survival mode and panic .
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Old 05-31-2017, 04:31 AM
 
5,163 posts, read 2,776,401 times
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After seeing my father in a "skilled nursing facility" for the last 6 years of his life, my long term care plan is a .38 Special.
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Old 05-31-2017, 04:58 AM
 
71,520 posts, read 71,694,121 times
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just hope you can move so you can pull the trigger
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Old 05-31-2017, 05:16 AM
 
5,163 posts, read 2,776,401 times
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Quote:
Originally Posted by mathjak107 View Post
just hope you can move so you can pull the trigger
Not planning to let it get that far.
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Old 05-31-2017, 11:07 AM
 
Location: Central Massachusetts
4,800 posts, read 4,845,678 times
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Quote:
Originally Posted by MarciaMarshaMarcia View Post
Not planning to let it get that far.
You might not have a choice. Poop happens.
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Old 05-31-2017, 12:18 PM
 
Location: LTCShop.com
236 posts, read 113,172 times
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Quote:
Originally Posted by mathjak107 View Post
so how do the level premium policies work day 1 ? you give them a 250 buck a month premium and year 1 need care . what do they cover for that 250 bucks ?
First off, most "level premium" hybrids are terrible. Most of them are "universal life insurance policies" with a chronic illness rider. Most of them do not have guaranteed benefits or guaranteed premiums.

There are a few "level premium" hybrids that work like traditional LTC insurance. You pay a small premium each month but you have the full benefits from day one. There is even one that has a lifetime/unlimited benefit period. It can never run out of LTC benefits. (Unfortunately, it is not available in your state of NY).
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Old 05-31-2017, 12:22 PM
 
Location: LTCShop.com
236 posts, read 113,172 times
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Quote:
Originally Posted by oldsoldier1976 View Post
While I agree that assets are not the most important issue. They can be the deciding factor when making that decision. Most people do self insure by not buying into the LTCi. Don't get this post wrong. I think it is very important that people consider and have a plan. A plan does not necessarily mean buying a policy but it does mean that they are aware of the issues and know of the consequences. A lot of people can self insure but they need to adjust as you said. Relying on the sale of the primary residence is one plan. It happens that it is our plan. However it is not as some think that I am going to buy a policy with that sale. My plan is to put the money in a conservative set of funds high in low risk with some equities mixed in so that it has some growth. But the point of the money is to be there to be withdrawn in case of need. If not needed then we can use it in the future for other things like a new home/condo.
If you or your wife needed care 5 years from now, your plan is to sell the home at that time?
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Old 05-31-2017, 12:29 PM
 
29,775 posts, read 34,860,277 times
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Quote:
Originally Posted by LTCShop View Post
Group plans that are "self funded" (e.g. CalPERS, FLTCIP) are not necessarily a great choice. Those "self funded group plans" do not have the same consumer protections that individual policies have.
I am talking about individual plans sold by LTC companies under a association umbrella
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Old 05-31-2017, 12:32 PM
Status: "Re-edit status" (set 16 days ago)
 
Location: Was Midvalley Oregon; Now Eastside Seattle area
4,168 posts, read 1,892,872 times
Reputation: 3195
Some annuities offer a LTC benefit.
You don't need LTCi, to cover all of the LTC expenses but enough to cover what your monthly retirement income are unable to cover.
Disclaimer. We have ltci purchases in early 2000s. We are 67/71.
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