Any real life stories to share regarding annuities, long term care insurance? (divorce, relative)

[mathjak107]

75k covers 6 months of care in todays dollars in these parts . by the time we are 80 that cost will be an insane amount .

[LTCShop]

Originally Posted by crusinsusan

I'm not happy with it. As I see it, assuming need at age 80, and beginning to pay premiums at age 50, the single person will have paid the company over $75,000 for the policy that will pay just $25,000 more for needed care. And that is using figures from the couples quote (surely discounted) and I'm betting women will pay more for that same $100k payout policy.

I'd rather put the "premiums" into my own investment and either make up the "extra" $25k. Or just put $2512 into a mattress each year, and have the $75k at 80 and pfffft! to the $25k of "fear money".

And not having to use it, means one would get back about $45k (if you say at age 80...hey! I won't ever need it!...which I don't see happening...I see someone else getting it: as an inheritance). It's a loss of over $30k if you don't use it.

Susan,

no one buys long term care insurance because they might need care 30 years from now.
everyone who owns long term care insurance owns it because they understand that they could become disabled at anytime and they don't know how long they will need care.

[mathjak107]

my co-worker needed it at 55 and my dad 66

[LTCShop]

Originally Posted by mathjak107

my co-worker needed it at 55 and my dad 66

exactly.

and when a DH or a DW becomes disabled in their fifties or sixties it throws a big monkey wrench into the retirement plan.

[selhars]

I'm not happy with it. As I see it, assuming need at age 80, and beginning to pay premiums at age 50, the single person will have paid the company over $75,000 for the policy that will pay just $25,000 more for needed care. And that is using figures from the couples quote (surely discounted) and I'm betting women will pay more for that same $100k payout policy.

I'm single and got quotes at age 54. And although I didn't get it, and have plenty of doubts/concerns about getting it….I think it's fairly clear that having it works out to one's advantage financially, IF one ends up needing and using the coverage for more than even just a year, depending on the benefit.

In the example above about 75K in premiums….if my math is right 75K dividing by a benefit payout of:
-- 100.00 a day……... you get your 75K back and are ahead after about 2 years
-- 200.00 a day…….… you get your 75K back and are ahead after about a year
-- 300.00 a day……..…it's only about 8 months and you're ahead already

The only policies I really considered were hybrids of life and LTCI, which cost a little more. But I'd WANT SOMEONE to benefit from all the premiums I paid out, if I never used the policy. I can't see having that money go down the tubes…not if there's the option of having some kind of death benefit for someone. I also only looked at policies that gave LTC options of cash payout for any care need home or facility, at my option and request. So that bumped the premium up a bit.

I still may end up getting one…just not now. The quotes I got and consultations I had were my first real foray into the issue. Now that I know what I want I can wait until I feel I'm ready to explore the issue again. For me it's strictly an issue of do I want to pay the premiums right now when I'm trying to save to retire as early as I can, and right now the answer is no. It's not because I'm AGAINST the idea of LTCI.

Sometimes I think people may feel "judged" a bit by others -- if they choose not to get LTCI. Like you're crazy if you don't have it. No, people aren't crazy or stupid for not getting it. They've just made a decision not to get it for whatever reason…..which may SEEM crazy to someone else, but the attitude of you're nuts if you don't get it -- is -- I think -- what leads to so many back-and-forth discussions and people feeling they need to defend their decision, instead of just discussion about informed financial decisions, even if they're different from what another person would choose.

[crusinsusan]

LTCshop...okay, but please answer my question:

55 (the higher age of the original question)
Female (the original question)
Single (the original question)

You chose the lower age.... (premiums will be lower, yes? at 50 than at 55?)
..missed or ignored the female question..(women are a greater risk, and so they will pay more, yes?)
...and missed or ignored that Robyn asked about a single, not a couple (couples discount?)

I want to hear what you have to say, but it feels a bit problematic, given the above.

[selhars]

^^what's your point about wanting the quotes? To prove it's unaffordable? or affordable, just see some numbers as part of research? to prove LTC wrong about something? What?

I've posted, more than once the quotes I got as a single, female, at 54.
They're here in various threads somewhere.
-------------------------

I'm SINK. I've looked over the quotes I got -- all 90 elimination period -- stand alone LTCI AND the life insurance LTCI hybrid for in home or facility care -- here are some: I won't name the companies but they're all major insurers....STAND ALONE:

AGE....POLICY MAX.....Max Monthly Benefit*..... Inflat Prot.....CASH Benefit.....Monthly Premium
53........160,600.........3,300................... .......3%................partial.............$211. 71
53........139,200.........2,900................... .......CPI...............none................$200. 10
53........123,744.........2,578................... .......3%...............partial..............$200. 03
54........219,000.........150 A DAY*..................3%...............none....... .........$202.45

If my math is correct those work out to about $110, $87, $85 and $150 a day.

HYBRIDS: with extended care rider for LTC
AGE......POLICY MAX ....MAX Monthly Benefit........Monthly Premium
54........250,000.............$5,000.............. ..........$250.50
54........250,000.............$4,920.............. ..........$236.00

[crusinsusan]

Originally Posted by selhars

^^what's your point about wanting the quotes? To prove it's unaffordable? or affordable, just see some numbers as part of research? to prove LTC wrong about something? What?

I've posted, more than once the quotes I got as a single, female, at 54.
They're here in various threads somewhere.
-------------------------

I'm SINK. I've looked over the quotes I got -- all 90 elimination period -- stand alone LTCI AND the life insurance LTCI hybrid for in home or facility care -- here are some: I won't name the companies but they're all major insurers....STAND ALONE:

AGE....POLICY MAX.....Max Monthly Benefit*..... Inflat Prot.....CASH Benefit.....Monthly Premium
53........160,600.........3,300................... .......3%................partial.............$211. 71
53........139,200.........2,900................... .......CPI...............none................$200. 10
53........123,744.........2,578................... .......3%...............partial..............$200. 03
54........219,000.........150 A DAY*..................3%...............none....... .........$202.45

If my math is correct those work out to about $110, $87, $85 and $150 a day.

HYBRIDS: with extended care rider for LTC
AGE......POLICY MAX ....MAX Monthly Benefit........Monthly Premium
54........250,000.............$5,000.............. ..........$250.50
54........250,000.............$4,920.............. ..........$236.00

My point was that the question wasn't answered. Another, not-asked question was. A surely cheaper version was given, and my radar goes off when a question is asked, and the answer given is not what the question was. And it happens time and again with salespeople. I was more polite, I think, in asking it again, but since you question my questioning....I've made it clearer.

Thank you for showing your quotes. That's helpful. I haven't come across them here before.

I see they're all just over 200 a month, with 2 being partial cash backs (how much? LTCShop said 60% @ $219 a month) and two with the money just gone (unless used for the care).

[LTCShop]

Originally Posted by selhars

The only policies I really considered were hybrids of life and LTCI, which cost a little more. But I'd WANT SOMEONE to benefit from all the premiums I paid out, if I never used the policy. I can't see having that money go down the tubes…not if there's the option of having some kind of death benefit for someone.

Selhars, please don't be offended by what I'm about to say, but I've never understood this way of thinking about LTC insurance. (e.g. The idea that that the premiums should be returned or that a death benefit should be paid if the policy is not used before you die.)

This way of thinking is not common with any other type of insurance.

For example, if you don't make a claim on your medical insurance, do they return your premiums? Does your homeowner's policy return your premium if you never make a claim? Or your auto policy?

I ask you this in all sincerity. What is it that is different about LTC that would make you want the premiums to be returned to your heirs if you died and you never needed long term care?

I'm just trying to understand your perspective.




sao

[mathjak107]

without inflation protection which the hybrids do not have they may end up useless off in the future and cover little .

around here so much cash would have to be dumped in to a hybrid policy to make it even close to useful that if i just kept that much money invested more aggressively just a piece of the return would likely pay the premium for a real ltc policy .