OMG Our Long term Care Insurance Just Doubled--Update Post 25

[MrsPete]

I agree. It's disturbing that your parents are having trouble using a policy that they paid into for 30 years.

Disturbing, yes. Surprising, no.

There is also a good chance you will never even need to go into a nursing home. In the three generations on my Mother and Fathers side, only my cousin needed to go into one. The rest died at home or in a hospital.

Depending upon your policy, long-term insurance may pay more than just a nursing home. The policies you really want are the ones that allow you to stay in your own home. The better policies will pay for nurse visits in your home and household care (i.e., cleaning, driving) that'll prevent you from ever setting foot in an over-priced nursing home.

Will these still be available when we're old enough to need them? I just don't know.

 

[ilovemk76]

At this point in time with the cost of nursing home care, LTC policies are a joke. I sure wouldn't be paying $2,400 a year for one.
You would be better off putting that money into a savings account, then putting that and everything else you've saved in a trust so that if the time comes you need a nursing home, Medicaid will take care of most the expenses.

My cousin had LTC, $100 a day for life. His nursing home care came to $400 a day. Getting the insurance company to actually send that money to the nursing home was like pulling teeth.
It took about three years, but he spent his life savings at that nursing home before becoming eligible for Medicaid. He could have not had that LTC policy and become eligible for Medicaid a year or so sooner. Or, he could have put his life savings into a trust for his children and they would have had his savings/home when he died, not the nursing home. Some call doing this unethical. I call it being smart.
There is also a good chance you will never even need to go into a nursing home. In the three generations on my Mother and Fathers side, only my cousin needed to go into one. The rest died at home or in a hospital.


My advice- find a trustworthy estate planner or get the Suze Ormon series on estate planning, cancel the LTC insurance and have fun at Disney!

You have to know the product you are buying. We have the inflation rider, flat premium rider, lifetime benefits and we can get paid 100% for in home care.

Suze Orman does include LTC in her estate planning. We used her book when researching our LTC.

I for one to NOT want medicare or medicaid deciding where I will end up in my end of life.

 

[Tink-aholic]

I pay for mine through work, as a payroll deduction. Because I started in my mid-thirties, my premium is less than $50 per month for pretty good coverage.

As a single parent, I needed the peace of mind of knowing that my resources would not go to pay for my care should I become disabled and unable to work now. I wasn't even thinking about estate planning.

 

[disney1990]

Just be very, very careful that you know what your long term policy covers. My Mom has had her policy for more years that I can count. About a year ago, she had to go into an assisted lived (dementia) care. I found out that her policy will only pay out for 2 -- yes 2 years. Then she has to start all over paying into it again and waiting for benefits, which she will probably never reach.

Her policy is now almost $12,000 a year and the company she has it with is no longer writing policies because they can't keep up with the demand for payout. They are very slow to pay, but we still have an $8,000 a monthly bill that has to be paid ontime. I have no idea what we will do when they stop paying in another year. I guess I will have to bring her to my house, even though she can't get in and out of it because of the stairs.

 

[BridgetBordeaux]

Research Update:

Called USAA and John Hancock today. They are the 2 companies involved in our policies.

1350 to 2700 has indeed been quite a shock.

Since we are 50 and in good health, new policies that offer LESS coverage than we currently have would run about 9400 to 9700 dollars a year. My jaw dropped yet again

Both spokespersons told us that we were lucky to have bought our policies when we did and that our rates (even the doubled ones) are lower than most of the other customers that have talked to.

We have a colorful family health history and have an only child. We do not want her to be lacking resources in case we both need long term care in the future.

I am sharing this with others so they may benefit from our experience. As long as DH has his job, and I have mine.....we can afford it. It will hurt a little bit, but we can do it and not jeopardize our monthly/yearly budget.

Thanks again for listening.

 

[cassandrap83]

Why not just buy a Whole Life policy??

Or, buy an instant-issue-type insurance which lets you use the full death benefit if you need to go into a nursing home?

 

[Tink-aholic]

I never considered that LTC insurance would be for the reasons that all of you people seem to think it is for. LTC insurance, from my point of view, is if you become disabled while you are young and unable to continue to work -- not if you eventually end up in a nursing home when you are elderly. That's why I have it.

No wonder some of you are finding it is so expensive and difficult.

 

[Sadie22]

Long term disability insurance is to replace a portion of income if you are unable to work due to disability. Long term care insurance pays for certain specified care, with lots of restrictions. When considering either of this it is as important to know what it will not pay as it is to know when and what it will pay.

 

[RitaE]

I never considered that LTC insurance would be for the reasons that all of you people seem to think it is for. LTC insurance, from my point of view, is if you become disabled while you are young and unable to continue to work -- not if you eventually end up in a nursing home when you are elderly. That's why I have it.

No wonder some of you are finding it is so expensive and difficult.

You are thinking of Disability Insurance which is meant to be income replacement for a wage earner. I thought that is probably what you were talking about on your previous post when you mention that you pay for yours via your job and it is only $50 a month.

Long Term Care insurance is meant to provide exactly what it says, Long Term Care. It is "Private Insurance" to cover Nursing Home or at home costs that are not covered by Medicare or other Private Health Insurance. It is usually taken by those who are approaching retirement - 50 to 55 years of age. Although there are some who take it out much younger.

 

[Tink-aholic]

You are thinking of Disability Insurance which is meant to be income replacement for a wage earner. I thought that is probably what you were talking about on your previous post when you mention that you pay for yours via your job and it is only $50 a month.

Long Term Care insurance is meant to provide exactly what it says, Long Term Care. It is "Private Insurance" to cover Nursing Home or at home costs that are not covered by Medicare or other Private Health Insurance. It is usually taken by those who are approaching retirement - 50 to 55 years of age. Although there are some who take it out much younger.

No, mine is Long Term Care insurance. I have it to take care of any nursing home needs I might have should I become incapacitated before I plan to retire. As a part of overall estate planning, it is a small factor for me, because I know that my needs would be met.

If people plan for themselves and assume they are going to need at least to reside in an Assisted Living facility, then wait until you're 55 and take out a huge insurance policy for that? Why not start saving for it in your 30s? I just don't understand.


If I become permanently disabled while still young, to the point that I need nursing home care (which would be paid for), I would have no need for a paycheck.

 

[bumbershoot]

Just be very, very careful that you know what your long term policy covers. My Mom has had her policy for more years that I can count. About a year ago, she had to go into an assisted lived (dementia) care. I found out that her policy will only pay out for 2 -- yes 2 years. Then she has to start all over paying into it again and waiting for benefits, which she will probably never reach.

Her policy is now almost $12,000 a year and the company she has it with is no longer writing policies because they can't keep up with the demand for payout. They are very slow to pay, but we still have an $8,000 a monthly bill that has to be paid ontime. I have no idea what we will do when they stop paying in another year. I guess I will have to bring her to my house, even though she can't get in and out of it because of the stairs.

Are you looking into Medicaid for her?

If people plan for themselves and assume they are going to need at least to reside in an Assisted Living facility, then wait until you're 55 and take out a huge insurance policy for that? Why not start saving for it in your 30s? I just don't understand.

The poster you quoted said: " It is usually taken by those who are approaching retirement - 50 to 55 years of age. Although there are some who take it out much younger."

Most people don't *think* about that sort of insurance when they are young. It's only later on that they think about it. It's when they see what *their* parents are going through, or what they had to go through to care for their parents (like the post I replied to above), that they want to take out that sort of insurance.

When I worked for an annuity company, the LTC plans they had were definitely NOT for people who were young just in case they became extremely disabled.

 

[karice2]

All I can say is that I wish we had this now. I am taking care of my dad who had a heart attack followed by a stroke. He is not in a nursing home but still needs lots of assistance. He couldn't stay home all day alone. Anyway, we pay out of pocket for his aid. She is about $1600 per month but she is a blessing to have. Dad didn't have to spend too much time in a care facility and it is helping wonders with his recovery.

 

[ilovemk76]

I never considered that LTC insurance would be for the reasons that all of you people seem to think it is for. LTC insurance, from my point of view, is if you become disabled while you are young and unable to continue to work -- not if you eventually end up in a nursing home when you are elderly. That's why I have it.

No wonder some of you are finding it is so expensive and difficult.

LTC is for your long term care. It can happen when you are young but is more likely when you are old. LTD is for when you are young and become disabled. LTC will not payout unless you make the list of X items you cannot do for yourself. You need both LTD and LTC. STD is optional. It would depend if you can live from your savings for 90 days.

 

[Bete]

and need the LTC coverage. None of this is through my own accord, but I was an only child and I married, but I'm without children. I tried some artificial means to get pregnant in my younger days and it just never happened. My husband is 15 years older than me with diabetes and my mom who passed this year had Alzheimer's for many years. She died at 91. My dad died when I was a child; mom never remarried. My husband couldn't get LTC because of his diabetes. I'm more or less convinced my husband will use any monies saved for his care when the time comes. My only safety net was to get LTC in my opinion.

I don't see that I had much of a choice with LTC considering my mother's history. Now, my safety net with LTC is in jeopardy, as well. I did this later in life at 57 and I've already paid 25 percent more this last year to keep it up in my second year of 10 years of paying out for it. I felt this was the only security I had for my old age care. I don't have many options under my circumstances.

Where are all the reserves the insurance companies should have from previous years when the interest rates were outstanding to get through the leaner years? There are many that die before they ever collect a cent on any LTC policy. Where is that money? I could go on, but you get the idea.

I tried to do the responsible thing, here; so, I wouldn't be a burden on the government.

We are on a fixed income and this really hurts when medicines keep going up and health insurance coverage keeps going up and our bills keep going up.

I'm really beginning to believe that all concerned in the this insurance business are taking exorbitant salaries and not earning their pay. When it was easy to make money with higher interest there wasn't a problem. Lower interest rates have been around for a while; it's not like it was a surprise to anyone.

Also, I believe strongly that Obamacare and this, as well, wants to kill off the older generation. I'd like to know how you avoid getting older? We all get there sooner or later. I've been frugal most of my life and very careful with spending for anything extra and this just sucks.