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MATHJAK, it is true that a non-reimbursement insurance/long-term care policy is the most expensive, but how do you feel about them for people who want flexibility when it comes using the money once they qualify for LTC and who do not want to undergo the underwriting process? If $64,000 can buy 6 years of coverage (each) for two people at $2,500 a month, is that a better way to go then putting $60,000-$100,000 in a cd? I address this question to you because I have seen a number of your posts here and pretty much agree with your financial philosophy. (I posted a similar question in it’s own thread.) Thnak you in advance.
for those with no choice it is better than nothing .but if you can qualify for a regular policy it is a far better deal .
but remember , these policies pay no interest other than the death benefit .as rates rise they don't need to raise your cost of insurance. these life policies keep your interest to pay for the limited benefits they give you .
to get the coverage i would want we would need to plunk down hundreds of thousands in a hybrid policy for god knows how long . they keep all the interest and that is why these get to be the costliest ways .
it was far cheaper to leave that money invested and just use a piece of the average returns over the years to pay for a real ltc plan .
Life insurance with a long term care option is very sneakily the most expensive way to get coverage
true but personally I feel much more comfortable with it that then any thing Genworth would every sell me. I simply don't trust them anymore. sort of like "fool me once" shame on you, fool me twice shame on me. Now I know you'll explain "why" this happened but personally knowing that they did not calculate it correctly did not make me feel any better.
Now as of yet I don't have either, I reevaluate every year and since I'm still under 60 I think I could get somewhat decent premiums but I'd rather go with the life insurance because at least when I die and that is the one thing I know will happen, the minions will get a payout if I don't need the ltc rider.
Some times I'll take the financial hit to sleep better at night. My friends mom is looking at a 21% increase this year, who knows what will happen in the next few years after that.
one of the reasons why I asked the question here because I did not want to give bad advice based on my poor experience.
gensworth is no different . all insurers who deal in ltc plans were fooled by statistics . they understated usage in the statistics presented to them by a whole lot .
so just google rate increases you will see every insurer either had huge raises or pulled out .
our first year we had a 10% raise. but that is because they applied for an increase the year before . it took in to the following year to get it approved so now it was even bigger because the state let them retro it .
but we are in to our 4th year without a penny more in premium,
we pay 7800 a year for the two of us and we get a 1600 state tax credit . so we pay about 6200. it includes a 1k surcharge because i am diabetic .
but this is a partnership plan with 100% asset protection . when the 3 years insurance is up , medicaid just pays the bills . there is no spend down , no look back , no recovery , no nothing as far as assets .
the stay at home spouse also has unlimited income allowed which never happens under medicaid . it also covers 6 years in home care
Recent developments in the state have increased costs. Minimum wage up. Requirement for back up generators increase costs. Plus all items on the lists are up. Vote for relaxed rules of death with dignity best move.
Thanks Mathjak. I guess we were/are thinking that the potential payout ($2,500/month for 6 years) would give us considerably more resources than what we could make in a cd, or similarly safe investment, over an investment period of 10+ years. I realize putting the money into the stock market would probably result in a bigger gain, but we are at a point where we very much want some stability and security in the future. The company we are considering does offer a return of premium, but you are correct that it would probably be without any investment gains (althiugh they say we ‘may’ be entitled to some interest). Much to think about.
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