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I'd really need to confirm this from multiple sources. I don't have family who'd bridge the gap before needing paid in-home care. Considering all the rich folks in this forum I'm not sure why they'd be that concerned about paying for 3 years of care...obviously an average is just that but it seems low.
the problem with these statistics is this . when they cut the medicaid budget in half in 2000 for long term care they stopped sending folks to snf and started using other types of less skilled facility's unless absolutely needed .
they stopped counting them too as they were not in a snf by definition .
my dad was one of those people . he was cared for in a place that took in others like him but they were not a snf . he spent 6 years there .
the others he was with spent considerable time .
the boomers have not reached the age yet so statistics are also on a generation that is older and did not even live as long as boomers will likely live .
many family's cared for members who really needed professional care and should not have been at home . we all know family's that were busted up because the family that did the care giving took a big financial , emotional and physical hit while the other siblings stepped back .
if there are wives involved divorces happened because of the caring and the hit that goes with it and you WILL HEAR about why are we doing this and your brothers and sisters don't take any hit .
we have not even counted those in assisted living or home care for many years , which has to be funded .
so don't believe those statistics for one second .
the odds are 77% of us will need some form of long term care at some point . we just don't know where or for how long .
Last edited by mathjak107; 01-06-2017 at 04:11 PM..
I'd really need to confirm this from multiple sources. I don't have family who'd bridge the gap before needing paid in-home care. Considering all the rich folks in this forum I'm not sure why they'd be that concerned about paying for 3 years of care...obviously an average is just that but it seems low.
Because they have the resources to do otherwise and wanted to max out he opportunity to be accepted into a high quality facility. Do some research on five star rated nursing homes in your area and see what percentage are in CCRC's and probably not having or limited in beds for non members.
I was in my previous threads and posts seriously considering LTCi but we (DW and I) discussed it and have settled on that we do not need it. We will be self insuring. Currently we are 58 and 59 and own our residence outright. In a few years we will put the house on the market and put the money into investments that probably will not generate a lot of income but will be readily available to cash in should the need arises. Out income is steady and safe enough to allow us to be able to self insure with little or no trouble. I know not everyone is in our position but as I said you need to discuss the situations and come up with some sort of plan.
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I'm slightly older than you and have LTCi. My insurance will pay out about $275.000 a year in 20 years. I have real estate investments that will conservatively pay out the same amount at that time but without the insurance that $275.000 will probably barely be able to cover the minimum care. My premiums over that almost 40 years will probably be about $100,000. If I spend the average 3 years then my policy will pay out $825,000. If I stay 10 years then it will be $2,750,000! Plus the insurance will allow me to have an additional $825,000/$2,750,000 for additional/better care.
If I never need it my estate will be $100,000 less but without it my estate and my care is at great risk. Seems like the only people that should NOT have LTCi are the people that can't afford the preimums over a 30 year period.
I'm slightly older than you and have LTCi. My insurance will pay out about $275.000 a year in 20 years. I have real estate investments that will conservatively pay out the same amount at that time but without the insurance that $275.000 will probably barely be able to cover the minimum care. My premiums over that almost 40 years will probably be about $100,000. If I spend the average 3 years then my policy will pay out $825,000. If I stay 10 years then it will be $2,750,000! Plus the insurance will allow me to have an additional $825,000/$2,750,000 for additional/better care.
If I never need it my estate will be $100,000 less but without it my estate and my care is at great risk. Seems like the only people that should NOT have LTCi are the people that can't afford the preimums over a 30 year period.
The part I put in bold is the problem. The cost has become so great that many can't afford it and as folks retire and premiums continue to rise what was affordable no longer is.
The problem we see for the FIL and his wife is by the time they need the coverage they are no longer competent to argue the case with the insurance company. The company knows this and denies the coverage. If they retirees don't have a competent advocate, then they lose.
The part I put in bold is the problem. The cost has become so great that many can't afford it and as folks retire and premiums continue to rise what was affordable no longer is.
OK what cant you afford? When I bought back almost 20 years ago I got a Rolls Royce lifetime product for less than $1,000 a year. I assumed it would double every ten years. $10,000 first ten years, $20,000 next ten years and $40,000 the next 10 years for a total of $70,000 for 30 years of prime coverage!!
What a genius I'd be if I needed the care in year 9. What a genius I'll be if I have the need in years 10-20! I'll be Einstein if after shelling out $70,000 over 30 years I get 3 years of care at $875,000 or $2,750,000 over 10 years. My investment plan (mostly real estate) can pay his amount indefinitely but why not DOUBLE my resources for the cost of about a pack or two of cigarettes a day?
People need to be realistic about the premium cost over time and the expense of the care TODAY & TOMORROW. Post that and then tell us what your decision is instead of fretting about how it is TOO much for too little.
The problem we see for the FIL and his wife is by the time they need the coverage they are no longer competent to argue the case with the insurance company. The company knows this and denies the coverage. If they retirees don't have a competent advocate, then they lose.
Problem solve. Now my provider provides a third party concierge advocate for me. I also have multiple designated people that have knowledge of my policy and will also advocate for me. I also believe Medicaid will step into some extent in the future if they think there is a source of care funds. That policy is an ASSET.
I'd really need to confirm this from multiple sources. I don't have family who'd bridge the gap before needing paid in-home care. Considering all the rich folks in this forum I'm not sure why they'd be that concerned about paying for 3 years of care...obviously an average is just that but it seems low.
Because we don't really know if it will be used, it's best to base on some statistics.
if that was the case shouldn't we not have fire insurance or life insurance at young ages ?
both those issues have far less of a chance being used than any long term care does .
someone always has to be on the wrong side of a statistic so odds really don't count when the only two choice's are is it you or isn't it . if it is you what is the impact ? will your spouse be impoverished ?
not something i would roll the dice on . we saw how easy it is to be the one when my dad had a stroke . statistic's don't mean much when it's you .
Last edited by mathjak107; 01-06-2017 at 06:35 PM..
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