The futility of saving for retirement (coverage, wife, adopted, insurance)
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We are 69 and 70. Our premiums are the same as they were when we bought the insurance 20 years ago.
Yes, but times are different. You are now seeing many LTC companies dramatically raise rates, and some are even in danger of going under as they have made promises that are going to be hard for them to keep as people are living to be older. I definitely would NOT be pinning all my future security on my LTC insurance.
Yes, but times are different. You are now seeing many LTC companies dramatically raise rates, and some are even in danger of going under as they have made promises that are going to be hard for them to keep as people are living to be older. I definitely would NOT be pinning all my future security on my LTC insurance.
We are pretty confident having John Hancock as the provider. And our future security is not pinned on LTC, it's just an insurance policy. Not sure where you got the impression we'll be destitute without that policy.
We are pretty confident having John Hancock as the provider. And our future security is not pinned on LTC, it's just an insurance policy. Not sure where you got the impression we'll be destitute without that policy.
I'm glad you are confident. Many people are putting an awful lot of faith in LTC policies with one company.
it is done all the time in all aspects of insurance .
in the mean time very few who bought insurance products ever lost money because of company defaults . we may have had as many insurers fail to pay someone as money markets lost money . it is very slim .
even 2008 , one of the most devastating times for any insurance company saw few if any issues . aig's insurance division needed no bail out and at no point was their insurance arm in trouble .
i think all the talk about insurers failing is a pretty small argument and your own personal investing has more risk to it .
gensworth as an example always had a stigma of financial weakness so ltc shop here looked in to them ..
Most of the "bad news" you hear about Genworth is written for investors explaining why they should not invest in Gewnorth bonds or Genworth stock. However, there is a big difference between investing in an insurance company and being a policyholder. In fact, what's good for the policyholders are oftentimes NOT good for the stockholders (investors).
A couple years ago Genworth added almost $2 Billion to their LTCi claims reserves. That was good news for all of the policyholders. That was bad news, however, for the stockholders. The stockholders would have preferred that money be counted as profits which would have increased the stock price. Instead, after adding that money to their LTCi claims reserves Genworth's stock dropped and that was the cause for the class action lawsuit.
The last time I checked Genworth had over $19 Billion in reserves set aside just to pay long term care insurance claims. Reserves are funds that are NOT counted as assets. Reserves can't be touched by creditors (or China Oceanwide). Reserves are used exclusively to pay claims.
Genworth collects about 2.5 Billion in LTCi premiums each year.
They are incurring about $1.5 Billion in LTCi claims each year.
And they have over $19 Billion in LTCi reserves (to pay future claims).
Those numbers work.
Last edited by mathjak107; 02-22-2018 at 02:54 AM..
I hear this comment commonly from those in their 30's, and may even have said or felt similar things myself 25-30 years ago. I gently rebuke them by acknowledging this concern at their age and then remind them of the power of compounding. Tell them to just keep plugging along on a steady plan of saving, and by the time they hit their 50's they will be astounded at how much they have accumulated!
We are pretty confident having John Hancock as the provider. And our future security is not pinned on LTC, it's just an insurance policy. Not sure where you got the impression we'll be destitute without that policy.
Same here - Fed Long Term Care contracted with Hancock. Making broad generalizations about all LTC companies makes no sense. My parents' have been paying into their plan for awhile and haven't seen dramatic increases. I stared five years ago and they did have an increase - but these increases haven't been occuring often, from my understanding.
The premium I pay isn't killing me financially. I'm not eating cat food in order to afford it.
Yes, but times are different. You are now seeing many LTC companies dramatically raise rates, and some are even in danger of going under as they have made promises that are going to be hard for them to keep as people are living to be older. I definitely would NOT be pinning all my future security on my LTC insurance.
Had my long term policy 12 years now, premiums have not increased. I did a lot of research before choosing a company and, there are no guarantees in life but, my family members all tend to make it well into their ninties and most have required nursing care for a few years so, for me it’s a worthy investment. Hope I never need it but happy to pay in case I do.
We are pretty confident having John Hancock as the provider. And our future security is not pinned on LTC, it's just an insurance policy. Not sure where you got the impression we'll be destitute without that policy.
That's great for you that you not only have money to "gamble" on an LTC policy but also extra for when it doesn't cover what you think it will.
Many will go broke trying to pay for the policy and end up abandoning it when they are at most risk. Most people DO pin their hopes on a policy because that's what it is FOR - shame on them for expecting a fair shake.
I got burned in the Genworth catastrophe a few years back. I have no intention of ever buying another long term care insurance policy. lol, I'm from the school of screw me over once, your fault. screw me over twice, my fault.
Of course I always say "never" and every year I reevaluate my entire financial situation.
So as of now (57) I'm happy with my plan to self insure.
what gensworth catastrophe ? if you are talking about the industry wide big increases because early policies were way under priced compared to actual usage and wrong statatistics that was by mostly every insurer .
i have them for 4 years with no issues
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