Long term insurance

[question everything]

Does anyone know of a good source to learn about long-term insurance, providers, reliability, need?

Of course, the biggest unknown is the elephant in the room - the baby boomers that will be drawing funds from the providers for the next 20 or 30 years.

Thanks

[El Supremo]

1. AARP includes a big...

"Shopper's Guide to LTCI" from the NAIC in the material it sends out with your application.

[goclark]

2. Long Term Care Insurance Banker's Life

This is not an Ad.

Just based on my personal experience, I am sure there are many others but Bankers Life was amazing to me.

The age limit is well into the 80's.


I had one with Seabury/Marsh and it would not kick in until you spent the 1st 25,000!

Banker's Life can kick in immediately --- at home, Asst. Living, Nursing Home and Hospice Care.

[question everything]

5. Thanks. Can you provide a contact

web link, or a phone number?

(hope this is OK with the rules)

[papau]

3. Federal Employee link below - but long term care Ins. is something

that I do not recommend. One is trying to insure something that can not be insured - with the result that you have a savings program with a piece off the top for the insurance company and its agents, plus claims control that effectively varies as claims get larger and control gets stronger, all in return for the minor - in my opinion - protection against early nursing home use.

Like Health Insurance - it needs a single payer national program.

http://www.opm.gov/insure/ltc/

Federal Long Term Care Insurance Program
(FLTCIP)

[question everything]

4. Thank you for the information

Yes, I know that this is very controversial.

Cost a lot of money for something that one may not need... if someone can just drop dead - either while asleep in one's bed, or being run over by an 18-wheeler.

But the reality is that one of us may end up needing assistance - either with help at home or at a care tacitly.

One of our parents was two years in a nursing home after a stroke, another 8 years with Alzheimer's.

Today a year in a nursing home cost around 50 - 75K. And while it appears that we should be able to retire on savings and SS and a bit of pension, these kind of expenses can wipe out everything.

And, no, we do not believe in creative accounting to hide assets so that "the government" will take care of us. The government is us, and the money should be spent on those who truly need it.

[papau]

6. That is true - nursing home cost ran through all but 20,000 of a 200,000

estate - meaning we were 2 months from Medicaid at my Aunt's death. In contrast both my parents died within one week of getting sick and never lived all that long to begin with.

I designed these products long ago, and my wife administered the Claims at one time for Hancock/Manulife.

There is indeed an insurance function, with those that get nothing like my parents offsetting the cost for those longer in the nursing home or assisted living.

Indeed it can be a good way to protect an estate.

It is just not a bargain (a fact that is true of any health insurance) and you set yourself up for claim denials and the paperwork of appeals by dealing with the insurance company.

And indeed hiding assets is not required so as to shift the cost to the government if that is the goal - one need only give assets away to the kids.

I doubt the premiums on a policy for my Aunt would have been less than the nursing home costs (she lived at her own home with our help until going to assisted living at age 95 - the estate was the value of her home).

[question everything]

9. Obviously one will have to find a carrier with a track record

of paying claims, not denying them... and of a stability as to not evaporate at a whiff of financial troubles.

I think that for one person your aunt example is appropriate, but for a couple, I would not like to have all the funds available to pay for one of us while impoverishing the other.

[goclark]

7. I totally agree with you

My mom in 85. She came home from the hospital after surgery.

I could take care of her most of the time but when I could not, I needed someone here.

In two months time, we spent @ $2000 + for a Care Giver. We were lucky to find a jewel for $13 an hour. That is rare.

I had to hire a night care giver when my mom was in the hospital recently. The hospital staff was Soooo bad that I did not trust them with my precious jewel of a mom. I paid $180 for a night nurse to stay with her from 7 PM to 7 AM.

How I wish that my mom qualified for In home Care Insurance!

To me it is the in home care option that I wanted. The chances of you getting sick and needing someone to take care of you for only two days is HIGH.

In the last three years, I have had two "minor" surgeries. The result was I could not fix my meals, needed help with everything. I have many friends but they are not always available to take me to the doctor's appointment/fix my meals etc.

Everyone's situation is different but I can say this, as an only child with an 85 year old mom, I did not want to put that burden on her. I can't tell you how much better I feel knowing that IF I need it it will be there for ME and that means for MY MOM.

Everyone's situation is different but Insurance is like the Lottery, I try to pick the right numbers but for sure I can't win unless I pay something to protect myself.

[papau]

8. Very True - if you can afford a comprehensive policy it is great!

:-)

[triguy46]

10. This is a good reference

Long-Term Care: Your Financial Planning Guide (Paperback)
by Phyllis Shelton

I was of the feeling that LTCI was a rip off, then I did some math. Sure there's probabilities, and many think, "I'll just take the premiums and invest them." Please, do the math, you'd be surprised, I know I was.

I think one key point in this book is very important, be sure to get inflation adjustment feature. $100 per day benefit purchased today isn't goingt to buy much in 2020 unless it is inlfation adjusted, a feature that isn't always offered, plus it makes it more expensive.

[Midlodemocrat]

11. In 2002, when my mom died, we had 24 hour care for my dad

because none of us lived nearby. I made arrangements to bring him here to live with me, but he really needed full time care and I couldn't do it.

The caregiver we hired to take care of him in CT cost us $9000 a month for 24 hour care. Staggering.

We have LTC insurance on my husband, and I am going to get some for me when I am old enough to get it.

I know some people think it is throwing money away, but after what we went through, I don't want my kids to ever have to go through that.