Can You Afford Long-Term-Care Insurance?

Research 10 years paid, or premium reduction at age 65

Very hard to find articles on 10 years paid, but there are plans where you do not pay preimums forever...

To learn more about long-term care insurance, 10 years paid up and premium reduction at 65, be sure to contact an expert who specializes in long-term care insurance.

TAB of MO @ Jul 29, 2009 10:48:05 AM

Long Term Care

If you are broke, you don't need LTC. Medicaid will pay. If you are a millionair, you don't need LTC because you can afford to pay the $4000. a month, but if you are anywhere in between, you need LTC. A few years at $48,000 per year would ruin my portfolio. I pay about $240 per month for a policy that will cover both me and my wife for 4 years at $4000 per month, has a 5% inflation clause and will be completely paid up if one of us dies. With this policy, I know I won't have to depend on my kids to care for me or their mother.

Wiley Jack of GA @ Jul 29, 2009 09:24:38 AM

LTC

It seems you have to pay the cost of insurance for a long time. Who knows what will happen in 20 years the company may go bankrupt or change benefits after you've paid for a long time.If you have heirs it is probably better to transfer property to them and keep a life

estate in your home so you can live in it for the rest of your life if you are able. I believe you have to transfer property 4 years before you can qualify for medi-cal in

California, so you would need to keep that in mind. That way if you've spent down

all other assets to the minnimum if you have no living spouse. I believe you only have

to spend down half your assets if you still have a spouse who needs them and you can keep the house if a spouse will remain there after you go into a nursing home.

P. Degregory of CA @ Apr 15, 2009 16:26:36 PM

LTC not needed

"Just 7% of all women who are healthy enough to qualify for long-term care policies will need long-term care for more than two years, according to the American Association for Long-term Care Insurance, an industry group. Only 2% of men will need it for more than two years." (from http://www.usatoday.com/money/perfi/eldercare/2007-06-27-elder-long-term-care_N.htm)

And there are so many stories about insurance companies that run these plans as ripoff profit centers, I am really relucatant to spend any money on LTC insurance. Remember, too, that most policies have a limit of 4 years, so if I end up needing LTC for 10 years, I will probably be no better off financially than if I never had it.

Lee Cornell of MN @ Mar 18, 2009 13:47:15 PM

Long Term Care

My wife and I took out LTC about six or seven years ago, and we pay a bundle (mine is about 4 grand a year and hers is 2). I am about to turn 70 this month and she will turn 60. One of my aunts was in a local nursing home recently until she died - eight grand a month were coming out of her savings. That was our motovation. We have a "cadillac" program that includes nursing home or in-home care, four years each, or if I need more than four years before she uses hers, I can use up to eight years. If I pay into the program for ten years and then die without using any LTC, my heirs will get everything I put into it back.

Although it seems expensive, when you compare it to one month's rate in a local nursing home three years ago, not so expensive.

Jack of MN @ Mar 04, 2009 13:44:01 PM

LTC ins

We went for John Hancock LTC insurance. Since we purchased in our forties, our yearly premium is about 3k. Our policy is also indexed for inflation and can be used on in home nursing care or assistance at home ( cleaning cooking etc) if need be. If one considers for a moment that the cost of nursing homes can exceeed 5k per month, it suddenly makes sense to purchase the insurance. My great aunt who is now 94 had to be placed last year and the " considerable savings" she clung to for dear life are evaporating before her eyes. I would much rather protect my home and assets with this policy now than watch all we worked for go into the pockets of a greedy ( and often substandard) nursing home. Unfortunately too many people wait too long and employ denial until a health crisis hits. Then, it is too late.Even if we never need a nursing home per se, we may one day need a home attendant or help with maintaining our independence. We don't want to be at the mercy of the market, medicare or any other "entity".

Margaret Heekin of NJ @ Mar 04, 2009 12:44:50 PM

LTC

I bought LTC Insurance to protect my savings for my survivers and myself. If I go into LTC for a while and am discharged, I'll still need my savings to live on in addition to my income. My spouse needs these savings to live on even if I am in LTC.

Matilda of ID @ Mar 04, 2009 12:41:06 PM

price of ltc

Those premiums are actually a bargain. The insurance company is taking on an incredible and somewhat unknown risk for a known premium. So for $200 - $300 per month, you can get back maybe as much as $500 per day in benefits. You could pay this costfor 15 years and get it all back in 1 year if you have to go into a nursing home. Nursing home care is expected to double in 10-15 years. It is already outrageous. And long term care can cover in-home care, adult day care, meals on wheels, etc. It is not just for nursing homes. Medicaid will not be able to afford this cost with the aging population. the government is giving us hints via that we should really self insure if at all possible. Quit buying $50,000 SUV's and spend some money protecting your assets and your family. This is all my opinion. But Life insurance, disability insurance, and long term care should be worked into your budget even before your mortgage. In other words, before buying expensive homes and cars, make sure you can afford these things in your budget.

john of OH @ Mar 04, 2009 09:01:32 AM