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I am talking about individual plans sold by LTC companies under a association umbrella
Just because an association sponsors a policy doesn't mean it's the best policy for everyone in the association. For example, AARP has endorsed LTC insurance for many years. In nearly every case, they've "endorsed" one of the most expensive policies on the market.
Just because an association sponsors a policy doesn't mean it's the best policy for everyone in the association. For example, AARP has endorsed LTC insurance for many years. In nearly every case, they've "endorsed" one of the most expensive policies on the market.
Sure. But it can be a good option especially 15-20 years ago
If you or your wife needed care 5 years from now, your plan is to sell the home at that time?
We are unique LTC. We were always planning on selling the house. The house will go on the market in 4 to 5 years. If we need LTC before then we will take from 401k plans. We have income enough to cover short term care of several months as it is even for both of us. If I need LTC I am a retired disabled veteran and I could be brought directly to any number of areas. After the sale of the house we would no longer be having to scramble because we would have the resources in the locations to cover that for a good long time.
The house is way too big for two or even the three of us (MIL, DW and I). It is 5 bedrooms 3 baths and over 3k SF on almost an acre of land. So the sale of the house was always in the cards. We are not planning on buying another house for at minimum 10 to 15 years provided we remain healthy and all goes well. When we are ready to settle down again we might pick up a condo or rent an apartment.
We are unique LTC. We were always planning on selling the house. The house will go on the market in 4 to 5 years. If we need LTC before then we will take from 401k plans. We have income enough to cover short term care of several months as it is even for both of us. If I need LTC I am a retired disabled veteran and I could be brought directly to any number of areas. After the sale of the house we would no longer be having to scramble because we would have the resources in the locations to cover that for a good long time.
The house is way too big for two or even the three of us (MIL, DW and I). It is 5 bedrooms 3 baths and over 3k SF on almost an acre of land. So the sale of the house was always in the cards. We are not planning on buying another house for at minimum 10 to 15 years provided we remain healthy and all goes well. When we are ready to settle down again we might pick up a condo or rent an apartment.
Regarding your statement: "If I need LTC I am a retired disabled veteran and I could be brought directly to any number of areas."
It sounds like your income and assets are too high for you to qualify for V.A. long-term care benefits.
Secondly, you've confirmed that there would be a significant financial hardship to your wife if you needed long-term care. And there would be a significant financial hardship to you if she needed long-term care.
That's why I stated in my first reply to you that "Very few couples can "self insure" without a significant lifestyle change for the healthy spouse."
That's the purpose of LTC insurance: to minimize the physical, emotional and financial consequences on the healthy spouse (and other family members).
If you ever need care over a period of years, your life is not going to end. Someone else’s life—or lifestyle—is going to end.
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 .
It's my feeling also that state partnership plans which provide protection of assets for the non-LTC spouse are the main benefit of long term care insurance.
With health care inflation running at such high rates it becomes difficult to afford a large enough daily benefit. Long term care insurance policies are only available to cover a fixed number of years and after that time runs out you are back to spending down your resources until you qualify for Medicaid.
At least with a partnership plan the non-LTC spouse will have some assets protected (and the benefits paid by the insurance will help to preserve some assets to protect).
That said the insurance is quite expensive and I am still shopping around for ours. I am also interested in a non-forfiture policy to keep some benefits in the event that rising premiums and fixed post-retirement income would make premiums unaffordable.
In my efforts to get quotes for LTCI rates is that they want both the husband and wife to get insurance. Premiums for just the wife are so much higher. They do that because they know the odds of the husband being in a home or staying very long are small. I been in quite of few LTC facilities and you find very few men. We are looking at the self funding option ourselves as I cannot see paying high premiums for myself when I know statically the chances of me spending much time in a home is small vs. my wife. Perhaps if in partnership state like NY it might make sense but we don't have that. It is very hard decision on what to do...we are still trying figure it out..
It's my feeling also that state partnership plans which provide protection of assets for the non-LTC spouse are the main benefit of long term care insurance.
With health care inflation running at such high rates it becomes difficult to afford a large enough daily benefit. Long term care insurance policies are only available to cover a fixed number of years and after that time runs out you are back to spending down your resources until you qualify for Medicaid.
At least with a partnership plan the non-LTC spouse will have some assets protected (and the benefits paid by the insurance will help to preserve some assets to protect).
That said the insurance is quite expensive and I am still shopping around for ours. I am also interested in a non-forfiture policy to keep some benefits in the event that rising premiums and fixed post-retirement income would make premiums unaffordable.
The LTC Partnership Program protects the assets of both spouses, not just the assets of the "non-LTC" spouse.
Keep in mind that the "long term care" inflation rate is much lower than the "medical care" inflation rate. Medical care inflation is driven by the high costs of prescription drugs, new medical technologies, and highly skilled labor. The "long term care" inflation rate is primarily driven by the cost of "non-skilled" labor. The labor inflation rate has been pretty low for the past decade.
The best LTC Partnership policies in PA right now are offered by Mutual of Omaha and Transamerica. There are some ways to design both of those policies that can give you excellent coverage but lower your premium by 30% or more. Unfortunately most insurance agents, even those who sell a lot of LTCi, use a "cookie cutter" approach and quote the exact same benefits for every person they talk to.
Regarding your statement: "If I need LTC I am a retired disabled veteran and I could be brought directly to any number of areas."
It sounds like your income and assets are too high for you to qualify for V.A. long-term care benefits.
Secondly, you've confirmed that there would be a significant financial hardship to your wife if you needed long-term care. And there would be a significant financial hardship to you if she needed long-term care.
That's why I stated in my first reply to you that "Very few couples can "self insure" without a significant lifestyle change for the healthy spouse."
That's the purpose of LTC insurance: to minimize the physical, emotional and financial consequences on the healthy spouse (and other family members).
If you ever need care over a period of years, your life is not going to end. Someone else’s life—or lifestyle—is going to end.
As I was told. Should I need care at a VA facility yes they look at my income. They will take my military pension. Will that leave my wife destitute? No. Will it require some adjustment? Yes. Your last line is disturbing. Why is someone's life going to end? Are you saying that if I am put in a nursing facility that my wife or someone else is going to die to keep me alive? I seriously doubt it.
Look I know there will be some income that I will need to provide to whatever facility I am put in. Or I will need to pay for someone to come to our home for either of us. If it gets bad I will not care to go anywhere without her. The same goes for her I believe.
So I am darn sure that we are or will be able to self insure.
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