Do you reach a point of enough wealth you don't need Long-Term care insurance any longer? (payment, accounts)

[leastprime]

IMO, those with LTCi could discover that their expenses in their "deductible" period will exceed their cash flow. IOW, can you afford 6mo (your number here) of LTC from your retirement funds before the insurance kicks in as an reimbursement.

[mathjak107]

Originally Posted by FREE866

What state are you referring to?


And is it really easy to say "I dont wanna live this way kill me"?

my father in law smoked like a chimney.

he used to say , what am i going to do , live a year or two longer if i give it up , no way.

well when he was diagnosed with lung cancer he cried like a baby ..suddenly life became very precious to him .

he would have given any thing to have another year .

so talk is cheap

[FREE866]

Originally Posted by mathjak107

my father in law smoked like a chimney.

he used to say , what am i going to do , live a year or two longer if i give it up , no way.

well when he was diagnosed with lung cancer he cried like a baby ..suddenly life became very precious to him .

he would have given any thing to have another year .

so talk is cheap

??


I was asking what US state considerforamoment lived in

and then asking how easy it is to get what i guess would be refered to as assisted suicide

[selhars]

Originally Posted by leastprime

IMO, those with LTCi could discover that their expenses in their "deductible" period will exceed their cash flow. IOW, can you afford 6mo (your number here) of LTC from your retirement funds before the insurance kicks in as an reimbursement.

And, of course, the sooner the insurance kicks in (the shorter the waiting period) - the higher the premium.

Insurance companies may have under estimated early on. But they're doing their best to make up for it now.
As any person or business would.....

[mathjak107]

ltc is priced so you pay in about a years worth of stay in future dollars .

so starting earlier isn’t much different in total dollars to get to that sweet spot where care is more likely

[Lizap]

Reminder - please keep comments related to OP. Feel free to DM with other comments. Thanks.

[considerforamoment]

Originally Posted by FREE866

What state are you referring to?


And is it really easy to say "I dont wanna live this way kill me"?

CA.

I don't know how easy or difficult it would be if given the circumstances. I do not wish to linger, I know that much.

[leastprime]

Originally Posted by selhars

And, of course, the sooner the insurance kicks in (the shorter the waiting period) - the higher the premium.

Insurance companies may have under estimated early on. But they're doing their best to make up for it now.
As any person or business would.....

I figured that it was better to have a shorter “deductible “ period rather than a longer period. I didn’t think our cash flow and asset base would last long enough before the LTCi benefits would kick in. We bought only enough insurance to cover ~50% of expected care, the remaining costs would have to come from selling something or asking $ from offspring.

Don’t know how this will play out. We are 20 years in; Maybe 20 years more, before we discover the answer
YCMV

[eastcoastguyz]

Originally Posted by mathjak107

it never really pays most of us to try to self insure.

why ? because to act as an insurance company you need to invest like one .

most of us can’t afford to have a huge chunk of money pulled out of the income generation pool to sit in a fixed income pool so it is there if needed .

Let's make an assumption, for example. I'm not factoring in taxes, just to make this simple.

Given a portfolio value of $2M which is professionally managed, and in retirement Social Security generates $40K of income. With a 4% withdrawal annually from the portfolio, that would be $80K. $80K plus the $40K would be $120K of gross income a year.

Then let's assume it's that $120K of income is what is needed, but anything below $100K would be unsatisfactory for your retirement. If you and spouse simultaneously had a hit of long-term care costs perhaps with 1-2 years span of each other and your out of pocket costs are $500K reducing your portfolio value to $1.5M. Social Security would still be $40K of income a year, but the 4% withdrawal annual from the portfolio would be reduced to $60K, and now the lower annual income would be $100K.

So in this scenario, you would want to have LTC (long-term care) insurance to protect net worth with a shared maximum benefit of $500K for the couple. Or decide that you could scale back your plan expenses for retirement and manage on $100K a year (if necessary), and not get Long-Term Care insurance.

What's wrong with self-insuring given this example? You would also save on the cost of the insurance premiums for LTC.

[eastcoastguyz]

Originally Posted by mathjak107

we now pay about 12k a year for our partnership plan that covers both of us at 400 a day inflation adjusted yearly by 5% .

it covers all assets 100% with no look back or spend own after the 3 years nursing home coverage or 6 years in home care runs out .

no limit on the stay at home spouses income nor can medicaid touch a thing .

we get a 1600 dollar tax credit for having policies a year from the state

Do these numbers reflect your policy?
$400 a day X 365 a year for 3 years x 2 people = max benefit of $876K
$400 a day X 365 a year for 6 years x 2 people = max benefit of $1,752,000

$12k a year in premiums is $1K a month. Is this a whole or term life insurance plan with an LTC rider? If so, does it have a death benefit or cash value?