Time to start thinking about LTC insurance - Where to start (relative, payment)
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Well considering that 50% of the people retire with less $100K in retirement I think that is lots for an average person to be paying. I doubt that the average person spends more then $275-$300 eating out.
Perhaps people of higher income do but not the average person in America. It is hard call and very few
people are going to buy LTCI at 48. I know there are some but a small percentage.
A couple who expects to retire with less than $100K in assets probably should NOT buy LTCi unless they are married and one spouse has a large pension that the other spouse is dependent upon. In that case, the spouse with the large pension should own LTC insurance in order to protect that income for the other spouse.
Anyone who can easily qualify for Medicaid should NEVER buy LTCi.
A couple, both aged 48, could share $250K of LTC insurance benefits for about $52 per month per spouse. Very affordable.
A couple who expects to retire with less than $100K in assets probably should NOT buy LTCi unless they are married and one spouse has a large pension that the other spouse is dependent upon. In that case, the spouse with the large pension should own LTC insurance in order to protect that income for the other spouse.
Anyone who can easily qualify for Medicaid should NEVER buy LTCi.
A couple, both aged 48, could share $250K of LTC insurance benefits for about $52 per month per spouse. Very affordable.
Is LTCi only really needed to prevent impoverishment of a spouse? That seems to be the major concern...no one buys it for themselves if they are single? Because they can deplete their funds and just go on Medicaid...but that isn't acceptable for a widowed spouse situation?
Medicaid here in ny can send you to an open bed up to 100 miles away from family . that would be horrible to me . i would want to first try for in home care to avoid a home if i had a say in it . medicaid makes that choice for you .
we bought our nys partnership plan not for the 3 years insurance . but the perks after the insurance ends .
modified medicaid picks up the bills with no asset shifting ,look backs ,spending down assets or restricted income on the stay at home spouse . there are no trusts need that cuts a spouse off from assets either .
many , nice , private homes will accept you as a paying customer and later take medicaid .
if medicaid is typically needed the stay at home spouse is reduced to what could be an impoverished income even though you may have preserved assets .
so to us this was a great deal .. we could easily fund the 3 years insurance on our own , but these perks were priceless .
Mathjak I respect your opinion on retirement strategies and would like to know what things you have done and would suggest doing to protect assets in the future.
only state partnership plans protect assets once the insurance runs out and maybe income but not regular ltc plans .
once regular ltc runs out game over .
what assets are protected vary by state . ny has plans that protect all assets and all income .
states are realizing that having two people end up impoverished and on public welfare is worse than allowing medicaid to pick up the tab for just one . so they are coming up with partnership plans to help the stay at home spouse remain solvent .
Last edited by mathjak107; 06-07-2017 at 03:47 AM..
Mathjak I respect your opinion on retirement strategies and would like to know what things you have done and would suggest doing to protect assets in the future.
Sweet*Tea no this is the exact forum to ask these questions. You can go back using the search and find many threads on LTC and read the varied posts and comments on them. Having a policy can help. Living in a state like NY with partnerships are great but we all don't live there. The one factor that does help in all circumstances is to have a plan. That does not mean having a policy. It does mean that you and your family sit down and talk about the plan. What happens in a situation that requires someone to need in home or out of home care over a longer period of time. Policies will pay not just for nursing but for in home care as well. They are pricey as you will find out the older you are. Once you start paying those premiums you will need to continue. It is like all insurance policies. You pay those payments so when you need it the policy is ready to pay off.
Another thing on this topic is if you do have a policy you will need to be prepared to fork out the first couple of months or more as the claim takes time to process. Meantime you or your husband may be in immediate need of that care. That is why having a plan is paramount to all other considerations. Knowing what needs to be done if X Y or Z happens. You most likely will need to react quickly after a catastrophic event so having an emergency fund to be able to cover the unexpected is critical too.
You will find that many here if you do some reading are self insuring. Some are in denial saying that they have a .38 caliber bullet with LTC written on it. I think that is flippant but it is what they said. Then we have our resident LTC experts and those with estates big enough to protect yet too small to feel comfortable to self insure.
If you want to know my wife and I have decided we will self insure. Our LTC money if needed is our home. We are in a home too big for us in the future and we have other plans on where to live. We do not have a huge nest egg but we have a steady solid income that can provide us with more than enough to do what we want. We also have a decent emergency fund that we can tap at any time and for any reason if the same of the house has not started. We both know where all the money is and how it is accessed.
Sweet*Tea no this is the exact forum to ask these questions. You can go back using the search and find many threads on LTC and read the varied posts and comments on them. Having a policy can help. Living in a state like NY with partnerships are great but we all don't live there. The one factor that does help in all circumstances is to have a plan. That does not mean having a policy. It does mean that you and your family sit down and talk about the plan. What happens in a situation that requires someone to need in home or out of home care over a longer period of time. Policies will pay not just for nursing but for in home care as well. They are pricey as you will find out the older you are. Once you start paying those premiums you will need to continue. It is like all insurance policies. You pay those payments so when you need it the policy is ready to pay off.
Another thing on this topic is if you do have a policy you will need to be prepared to fork out the first couple of months or more as the claim takes time to process. Meantime you or your husband may be in immediate need of that care. That is why having a plan is paramount to all other considerations. Knowing what needs to be done if X Y or Z happens. You most likely will need to react quickly after a catastrophic event so having an emergency fund to be able to cover the unexpected is critical too.
You will find that many here if you do some reading are self insuring. Some are in denial saying that they have a .38 caliber bullet with LTC written on it. I think that is flippant but it is what they said. Then we have our resident LTC experts and those with estates big enough to protect yet too small to feel comfortable to self insure.
If you want to know my wife and I have decided we will self insure. Our LTC money if needed is our home. We are in a home too big for us in the future and we have other plans on where to live. We do not have a huge nest egg but we have a steady solid income that can provide us with more than enough to do what we want. We also have a decent emergency fund that we can tap at any time and for any reason if the same of the house has not started. We both know where all the money is and how it is accessed.
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