Decided to purchase Long Term Care insurance

[Anonymous]

I realize the pitfalls, but watching several parents of my friends use it because, even though they were in a CCRC, or independent
living, they still needed assistance in independent living because assisted living is really no help. I have so many examples of this, it's been very clear. There's not really a midway between independent living and skilled care as we all think, so I'm making plans now for us for what might happen later. Having in home help mattered.

But, I want something that could eventually cover nursing home fees, even just partially, if that is the case. Does that even exist?

[Anonymous]

I haven't really thought about this yet, but I'm interested. I'll be checking back for other replies on this post.

[Anonymous]

My ILs like to talk about what a great LTC policy they have but they are absolutely against any in home care or god forbit you bring up nursing home care. They are in their late 80s and in poor health. I'm pretty sure they will die without using any of the policy because they are to stubborn to consider they need help. If you buy it make sure you are the type to actually use it.

[Anonymous]

I shopped for it a while ago and it just seemed too expensive.

[Anonymous]

It is such a difficult decision and so expensive now. I ended up buying a life insurance policy for me, that allows my beneficiaries the ability to access the amount early if I ended up needing long term care. I am not sure how difficult it would be to access the money, but I figured it would be better than nothing.

Dementia runs in my family, so I will probably end up needing some kind of care.

[Anonymous]

My parents (85) are starting to use their LTC insurance right now. Pays about 60% of the current cost of rehabilitation facility one of them is in.

[Anonymous]

Anonymous wrote:My parents (85) are starting to use their LTC insurance right now. Pays about 60% of the current cost of rehabilitation facility one of them is in.

I feel like for a lot of people, this still isn't even worth it. Because 40% of a rehab stay is still insanely expensive, many folks wouldn't be able to afford that portion anyway.

[Anonymous]

My own anecdotal data, 2 geriatric physicians I've asked and retirement facility management personnel I've asked, don't have it. I'll check-in with them every few years.

[Anonymous]

Anonymous wrote:My ILs like to talk about what a great LTC policy they have but they are absolutely against any in home care or god forbit you bring up nursing home care. They are in their late 80s and in poor health. I'm pretty sure they will die without using any of the policy because they are to stubborn to consider they need help. If you buy it make sure you are the type to actually use it.

You realize that YOU will use it because when the crap hits the fan, they won't be managing things. You will, you will hire help, and you will do the paperwork to receive the funding. It doesn't matter if they think they don't need help. Unless they die in their sleep, things just haven't escalated yet.

[Anonymous]

Anonymous wrote:My own anecdotal data, 2 geriatric physicians I've asked and retirement facility management personnel I've asked, don't have it. I'll check-in with them every few years.

Skilled nursing care is about 13 to 15 k a month. Those doctors might have that amount, but I don't.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My own anecdotal data, 2 geriatric physicians I've asked and retirement facility management personnel I've asked, don't have it. I'll check-in with them every few years.

Skilled nursing care is about 13 to 15 k a month. Those doctors might have that amount, but I don't.

24 hr care at home is at least $15.00 an hour.


Does everyone have this kind of money?

[Anonymous]

My mother had a great LTC policy. It paid more than $450/day for care, whether in-home or at a facility. It had no lifetime max, and covered 90% of her costs. Completely worth it.

I don't think you can buy policies that generous anymore, but I plan to buy myself one when I am in my mid-sixties, maybe with coverage for 5 years. (Statistically, most people die within a few years after needing such care).

[Anonymous]

My uncle was diagnosed with cancer (he's in his early 70s) and has 6-18 months to live. They had an LTC policy. But, it's got all kind of restrictions on who you can hire, paperwork, etc. My aunt is already overwhelmed with everything.

She called up the company and they offered to just send them a check for $90k and consider it done. I'm guessing that's less than the company made from them over all these years, but then she can focus her time on being with him and he can get the help from people he wants (not those on the list of registered care providers necessarily).

[Anonymous]

Anonymous wrote:My mother had a great LTC policy. It paid more than $450/day for care, whether in-home or at a facility. It had no lifetime max, and covered 90% of her costs. Completely worth it.

I don't think you can buy policies that generous anymore, but I plan to buy myself one when I am in my mid-sixties, maybe with coverage for 5 years. (Statistically, most people die within a few years after needing such care).

You can get a sense of premiums and coverage by looking at the federal benefits available:
https://www.ltcfeds.com/tools/premium-calculator

To get one of these generous plans these days (and it is still time limited) would be $668 a month for me (a 55 year old woman). The plan would be in place for 5 years. So, if you ended up using it, that's $450 a day *365 days * 5 years (the maximum payout, it is also inflation adjusted). $821,250, is what I calculate. If I get dementia when I'm 85, I would have paid in $240,480 after 30 years. If you invested the money over the same time frame, depending on the market you could have between $300-$500k.

If you survive to age 65, about half the time you will have an insurable event (2 or more activities of daily living limitations, or cognitive impairment that requires supervision). For a quarter of women, that will last more than 5 years. A lot of the time, family caregivers step in, so the percentage using paid LTSS for more than 5 years is much smaller. https://aspe.hhs.gov/sites/default/files/documents/8f976f28f7d0dae32d98c7fff8f057f3/ltss-risks-financing-2022.pdf

Personally, with a premium that high, and my current wealth, I'm not getting the insurance. I would have bought it in a heartbeat if I could have gotten what my Mom has.

[Anonymous]

I think the rich should self insure and the poor should spend down and get on Medicaid. Policies nowadays are too expensive and the payout not that great. I’m not rich, but think I will have enough to cover 5-10 years in a facility but if by some small chance I run out, then Medicaid it is. I hope to leave an inheritance, but if I can’t, then I hope my heirs will understand. What I don’t want to do is put my kids in the position of having to support me.