AARP Bulletin Article on Long Term Care Insurance (retired, engage, relationship)
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depending on area there is really a window where protection is needed and warranted . over 1 million and under -5 million is where i feel it is useful in nyc . at 130k-140k a year if you have a stay at home spouse they would be severely impacted if they could not generate enough income on what is left . the rate of burn for two people would be very dangerous .
so under 1 million there is not much to protect and over 5 million there is likely enough to afford the care in our area . other areas may be 1/2 or even 1/3 those amounts .
In terms of costs, NYC is not representative of most of the U.S., so for most people, this range should probably be adjusted downward somewhat. Also, there are so many factors to consider (e.g., do you want to leave an inheritance?, will you be living in a CCRC?)
The basic reason for us to have LTCi policies is to not have the insecurity of huge payments for elder care hanging over our heads. We also wanted to ability to pay for good care in our own home, which is included in our policies.
DH worked in a highly technical field and can crunch data all day and night. But elder care is such an unknown for each individual - not group statistics - and we want to enjoy our retirement without having that financial disaster hanging over our heads. We know all costs will not be covered but it will be very manageable.
We could probably self-insure but we have seen even well-off people practically wiped out. The remaining spouse can be in even worse shape. We have seen it happen to family, friends and neighbors, many of whom were in great health until they weren't. We have seen people spend 5-10 years in skilled nursing, way out of line for the statistics. It makes a big impression when you see closeup what families go through. I also have little faith in Medicaid continuing on the same course in providing care.
The risk and worry is not worth it to us. Others, of course, feel differently. It just depends on what your risk tolerance is and what level of security you are comfortable with.
......... However we were fortunate to have gotten years ago and have coverage and pricing not currently available to folks. Makes it easy for me to be a fan of.
Same category we are in. Policies purchased 12 years ago while in our late 40's (very late for me). Policy premiums have been reset on 6 year intervals so far. Frustrating when it happens but we are buying the policies for a reason.
My Dad spent 3 years in a Nursing Home following a devastating stroke. He was Private Pay for the entire period due to the look-back provisions. His care costs would have been transferred to Medicaid within a few months if he had lived longer. His three years of care cost Mom $100K. He died nearly twenty-five years ago.
Mom was cared for in her home by my older sister for two years following a milder, yet still crippling, stroke.
Hi. I’m away and not fond of typing on an iPhone. So briefly ... various arguments for LTCi for singles, many of whom can self-fund from an income stream supplemented by investments. No heirs and even LTCi agents will agree that insurance may not make sense - in particular the new short term policies.
If there is an heir one of the touted benefits is to “protect” the inheritance. Depending on the cost of the policy this may not provide much benefit - statistically IF you are willing to risk the inheritance for an early event. For me, I am willing not to insure against the about 50 percent possibility the inheritance or some portion of it is lost - IF the future cost of the payments will equal the insurance payments by about age 82 - for me, not others. That’s the reason for a break even approach - in that narrow application.
The lower the policy cost...the more likely others will arrive at different calculations.
That there is a insurance benefit to any LTCi IS relevant - but that’s a separate analysis and a different reason for buying. The point is to know what you are buying - cost impact - and WHY.
Reading these forums ... many tho certainly not all who comment appear to be couples, some with older unlimited policies or other benefits like complete asset protection. And much lower premiums.
No argument that multiple layers of protection are desirable. Nor that there needs to be a plan in place to cover or “insure” care even if it is not a financial instrument.
All too often these discussions degenerate into folks reporting policy costs and situations that don’t reflect the reality of a new buyer, particularly single females. Or they get into the old canards that LTCi is like auto insurance. I personally did not find those approaches helpful, at my asset level etc.
At the same time there are elements of my situation that won’t apply to most and so my take shouldn’t be generalized.
Hi. I’m away and not fond of typing on an iPhone. So briefly ... various arguments for LTCi for singles, many of whom can self-fund from an income stream supplemented by investments. No heirs and even LTCi agents will agree that insurance may not make sense - in particular the new short term policies.
If there is an heir one of the touted benefits is to “protect” the inheritance. Depending on the cost of the policy this may not provide much benefit - statistically IF you are willing to risk the inheritance for an early event. For me, I am willing not to insure against the about 50 percent possibility the inheritance or some portion of it is lost - IF the future cost of the payments will equal the insurance payments by about age 82 - for me, not others. That’s the reason for a break even approach - in that narrow application.
The lower the policy cost...the more likely others will arrive at different calculations.
That there is a insurance benefit to any LTCi IS relevant - but that’s a separate analysis and a different reason for buying. The point is to know what you are buying - cost impact - and WHY.
Reading these forums ... many tho certainly not all who comment appear to be couples, some with older unlimited policies or other benefits like complete asset protection. And much lower premiums.
No argument that multiple layers of protection are desirable. Nor that there needs to be a plan in place to cover or “insure” care even if it is not a financial instrument.
All too often these discussions degenerate into folks reporting policy costs and situations that don’t reflect the reality of a new buyer, particularly single females. Or they get into the old canards that LTCi is like auto insurance. I personally did not find those approaches helpful, at my asset level etc.
At the same time there are elements of my situation that won’t apply to most and so my take shouldn’t be generalized.
You make some excellent points. People get LTC insurance primarily for two reasons: to provide for medical care in latter years and to preserve assets so that there will be an inheritance. If you take the second reason away, CCRCs make even more sense.
You make some excellent points. People get LTC insurance primarily for two reasons: to provide for medical care in latter years and to preserve assets so that there will be an inheritance. If you take the second reason away, CCRCs make even more sense.
But does a CCRC provide the Long Term Care without additional fees? Costs for CCRC's, both the buy-in and monthly fees, vary so widely that I cannot fathom every CCRC is a full service facility without additional costs for higher levels of care.
But does a CCRC provide the Long Term Care without additional fees? Costs for CCRC's, both the buy-in and monthly fees, vary so widely that I cannot fathom every CCRC is a full service facility without additional costs for higher levels of care.
You pay an upfront cost and a monthly fee. These fees cover you for as long as you are alive, regardless of how much assistance you need. This may differ at some, but this is how ours works. Many CCRCs have excellent skilled nursing facilities and are highly rated.
But does a CCRC provide the Long Term Care without additional fees? Costs for CCRC's, both the buy-in and monthly fees, vary so widely that I cannot fathom every CCRC is a full service facility without additional costs for higher levels of care.
It depends on the CCRC model. The one we have affiliated with is a newer pay model where there is no buy in and you pay monthly with each level of service being more expensive. Of course if you have LTCi when you hit that level the insurance kicks in. The other place we looked at has a buy in and a one time 53K charge per person for LTC/etc. That may have gone up. Of course there was a physical required to get in that one.
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