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I won't need long term insurance for decades but I like to plan ahead. Thank you to the people who gave useful responses.
If you don't purchase it before age 50 it is too expensive for most folks. I purchased a John Hancock plan that covers 3 Years but now wish I had purchased a plan that covers 5 years. Both my dad and several aunts and uncles have been completely dependent on round the clock skilled care for 4 years or longer and their savings are running out. No matter how well you save, after 30 years in retirement, skilled nursing care will eat up your savings fast.
i waited 2 years extra and now i pay 1k more because of the way recent blood tests came back showing diabetic even though i no longer am with diet and exercise.
they have access to years worth of your blood tests . i was quite surprised to learn all my data is right on file in medical data banks , like credit reporting is .
as an example , you are losing the return on that money that could be used to buy a regular full feature ltc policy instead of a hybrid with limited benefits
No one buys these policies for the potential return, nobody .
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we could have plunked down a large lump sum of money in a hybrid and got little return and a 1/2 baked ltc plan .
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instead we took the same amount , invested it as we do all our money and with just a piece of the higher gains we pay our premium for a partnership plan loaded with perks and far better coverage and still have quite a bit left over .
Most folks are using money that is not being invested aggressively, partnership plans are irrelevant with most clients using this plan, your plan's premiums are not guaranteed and you don't have lifetime coverage, how is that far better coverage?
You could get a lifetime LTC benefit, the LTC benefit is 1/2 baked, it is guaranteed.
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so great the hybrids don't raise your premium . they don't have to . they keep the gains on your money you are not getting instead . it is a lot of money to plunk down and quite expensive in opportunity costs , and likely a lot of gains to give up on that money for what you get in such limited benefits.
The non guarnteed gains on the policy are totally irrelevant. What are the limited benefits? I see the ones on your policy.
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it is like spending 100 bucks to win a 10 buck prize and saying it does not matter because you wanted the prize .
If you don't purchase it before age 50 it is too expensive for most folks. I purchased a John Hancock plan that covers 3 Years but now wish I had purchased a plan that covers 5 years. Both my dad and several aunts and uncles have been completely dependent on round the clock skilled care for 4 years or longer and their savings are running out. No matter how well you save, after 30 years in retirement, skilled nursing care will eat up your savings fast.
The way LTCi policies are priced now, it usually does NOT make sense for someone under the age of 50 to buy long-term care insurance. The only reason for buying it under age 50 is if you're concerned about insurability.
Numbers-wise, the best ages to buy LTCi is between 55 and 69.
You won't read that anywhere.
This is based on my experience. All I do, ALL DAY LONG, is run LTCi quotes for consumers in all 50 states.
Like I learned while studying insurance broker test which I passed insurance is only good for the consumer when it does one thing, insure. Getting a product that covers more than one thing never works in the favor of the consumer. Even bundling at a single insurance company your products might not be the best deal either. It might in the beginning but once you become like a warm comfortable pair of shoes to the company then they think they own you and before long your costs for the same product goes up dramatically in spite of your long association with them.
How can they become more expensive when rates and benefits are GUARANTEED? Impossible.
Opportunity cost.
Anyone who can earn 3% on their money should NEVER buy a single-premium hybrid policy.
You'll get MUCH better LTCi benefits for less than the 3% you'd earn on the single-premium.
Here's a link to someone who thinks you should NEVER* combined long-term care insurance with life insurance.
The way LTCi policies are priced now, it usually does NOT make sense for someone under the age of 50 to buy long-term care insurance. The only reason for buying it under age 50 is if you're concerned about insurability.
Numbers-wise, the best ages to buy LTCi is between 55 and 69.
You won't read that anywhere.
This is based on my experience. All I do, ALL DAY LONG, is run LTCi quotes for consumers in all 50 states.
This I completely agree with. If you are going to buy LTCi do it between those ages. As I have said all along LTCi has its uses and people need to weigh it in their financial circumstances. But it doesn't make sense prior to age 50 unless you know or suspect something that will prevent you from qualifying for LTCi in the future.
no one ever really knows what may happen . i never thought in 2 years time i would jump from normal to diabetic .
there really is nothing to be saved waiting . there is a target range where odds start to get pretty high of needing care . by the time you reach that sweet spot the policies price so off in the future you will pay in about 1 years worth of premiums in a snf at that time . younger just means less in each premium .
No one buys these policies for the potential return, nobody .
Most folks are using money that is not being invested aggressively, partnership plans are irrelevant with most clients using this plan, your plan's premiums are not guaranteed and you don't have lifetime coverage, how is that far better coverage?
You could get a lifetime LTC benefit, the LTC benefit is 1/2 baked, it is guaranteed. in fact i will do my best to make sure they understand just how poor a value they are .
The non guarnteed gains on the policy are totally irrelevant. What are the limited benefits? I see the ones on your policy.
You really don't understand these plans.
i understand them all to well . they should be plans of last resort and for the most part are very poor value for what you have to plunk down . you like them , buy it . but you will never see me recommend them to anyone who can get some real ltc coverage . in fact i will make sure i convey as best as i can how poor a value and how half baked these hybrids as ltc plans can be .
This I completely agree with. If you are going to buy LTCi do it between those ages. As I have said all along LTCi has its uses and people need to weigh it in their financial circumstances. But it doesn't make sense prior to age 50 unless you know or suspect something that will prevent you from qualifying for LTCi in the future.
What is available and the terms available at age 49 might not be available in five years as plans evolve. Our plan is a perfect example. Yes purchased in our mid 50's ish a 49 year old in our employment would have been better served to have purchased then and locked in what is now not available and certainly not at our price.
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