Decided to purchase Long Term Care insurance

[Anonymous]

I have the policy offered through the Federal government (for Federal employees). I believe it is run by John Hancock. It is expensive (and has gone up dramatically). But it covers both nursing home care as well as home care (plus I think even something if a family member has to come for regular care.

When you sign up, you have many choices which impact the price (such as how much per day, how long it lasts for). Be sure to opt for inflation protection.

Good luck.

[Anonymous]

No guarantee that the companies providing it will be around when you need it. Find out what happens to the policy if the company goes under.

[Anonymous]

My mom bought LTC insurance. I am sure she didn't think she'd need it, and definitely didn't want to be in assisted living. But then she had a stroke and was unable to work or live at home. She has been in LTC since 2010. THANK GOD she had those policies which have paid for themselves MANY times over. Her facility is now $7k a month, compared to $3k when she moved in. I am sure the policy has paid $750k over the course of twelve years. If she hadn't had the insurance, things would have been pretty dire.

I think these policies are issued with the idea that people won't live very long in such facilities, but sometimes (like my mom) people live much longer than expected.

[Anonymous]

I have ltc feds. I think it probably has a lower risk of going under since it has a pool of federal employees paying in. My wife has a hybrid policy where it can be for ltc, or if she does without using some or all of the benefits, they are paid out to a beneficiary. It is expensive but we are paying for it over 5 years and then there are no more premiums.

[Anonymous]

Anonymous wrote:My mom bought LTC insurance. I am sure she didn't think she'd need it, and definitely didn't want to be in assisted living. But then she had a stroke and was unable to work or live at home. She has been in LTC since 2010. THANK GOD she had those policies which have paid for themselves MANY times over. Her facility is now $7k a month, compared to $3k when she moved in. I am sure the policy has paid $750k over the course of twelve years. If she hadn't had the insurance, things would have been pretty dire.

I think these policies are issued with the idea that people won't live very long in such facilities, but sometimes (like my mom) people live much longer than expected.

Medicaid would have covered her when things got dire.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My mom bought LTC insurance. I am sure she didn't think she'd need it, and definitely didn't want to be in assisted living. But then she had a stroke and was unable to work or live at home. She has been in LTC since 2010. THANK GOD she had those policies which have paid for themselves MANY times over. Her facility is now $7k a month, compared to $3k when she moved in. I am sure the policy has paid $750k over the course of twelve years. If she hadn't had the insurance, things would have been pretty dire.

I think these policies are issued with the idea that people won't live very long in such facilities, but sometimes (like my mom) people live much longer than expected.

Medicaid would have covered her when things got dire.

Yes but then she'd have to be in a horrible facility that was probably very far away.

[Anonymous]

We have it and I'm glad we do- as OP mentioned, there's no great midway point between living independently and nursing home care that doesn't cost an unbelievable sum of money.

I'm watching family members deal with worst case- a parent who doesn't quite qualify for nursing home care, and can't be independent (literally, cannot get to the bathroom without an accident). Medicare won't pay for in home care, and his kids can't live with him or take him to live with them - it would be way to much physically and mentally for them to handle since they have their own jobs/families.

I'll tell you, I would throw myself in front of a bus rather than throwing myself on the mercy of the US health care system.

[Anonymous]

Anonymous wrote:We have it and I'm glad we do- as OP mentioned, there's no great midway point between living independently and nursing home care that doesn't cost an unbelievable sum of money.

I'm watching family members deal with worst case- a parent who doesn't quite qualify for nursing home care, and can't be independent (literally, cannot get to the bathroom without an accident). Medicare won't pay for in home care, and his kids can't live with him or take him to live with them - it would be way to much physically and mentally for them to handle since they have their own jobs/families.

I'll tell you, I would throw myself in front of a bus rather than throwing myself on the mercy of the US health care system.

Nursing homes are not any better...even if you can afford a good one.

[Anonymous]

Anonymous wrote:My mom bought LTC insurance. I am sure she didn't think she'd need it, and definitely didn't want to be in assisted living. But then she had a stroke and was unable to work or live at home. She has been in LTC since 2010. THANK GOD she had those policies which have paid for themselves MANY times over. Her facility is now $7k a month, compared to $3k when she moved in. I am sure the policy has paid $750k over the course of twelve years. If she hadn't had the insurance, things would have been pretty dire.

I think these policies are issued with the idea that people won't live very long in such facilities, but sometimes (like my mom) people live much longer than expected.

But how did hers not run out?

Mind only lasts I think 3 years (once care kicks in).

[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.

My spouse who is a COO in a large elder care community, says it’s a waste of money. We don’t have it.

[Anonymous]

Its a gamble. There is no way to know. We are self insuring on the advise of our finance guy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My mom bought LTC insurance. I am sure she didn't think she'd need it, and definitely didn't want to be in assisted living. But then she had a stroke and was unable to work or live at home. She has been in LTC since 2010. THANK GOD she had those policies which have paid for themselves MANY times over. Her facility is now $7k a month, compared to $3k when she moved in. I am sure the policy has paid $750k over the course of twelve years. If she hadn't had the insurance, things would have been pretty dire.

I think these policies are issued with the idea that people won't live very long in such facilities, but sometimes (like my mom) people live much longer than expected.

But how did hers not run out?

Mind only lasts I think 3 years (once care kicks in).

Early policies were more generous. They are not offered anymore as they were not profitable. One year is probably sufficient for most people.

[Anonymous]

Anonymous wrote:My mom bought LTC insurance. I am sure she didn't think she'd need it, and definitely didn't want to be in assisted living. But then she had a stroke and was unable to work or live at home. She has been in LTC since 2010. THANK GOD she had those policies which have paid for themselves MANY times over. Her facility is now $7k a month, compared to $3k when she moved in. I am sure the policy has paid $750k over the course of twelve years. If she hadn't had the insurance, things would have been pretty dire.

I think these policies are issued with the idea that people won't live very long in such facilities, but sometimes (like my mom) people live much longer than expected.

WHAT FACILITY??? That's amazing that she has lived for 12 years in a LTC facility. Sorry to say it bust most people don't.

[Anonymous]

I was going to write somethings based on our experience, but everything has already been said. This is a good collection of information! DCuM, you’ve outdone yourself!

[Anonymous]

Anonymous wrote: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.

This. My parents are UMC. They self insured. My parent was in memory care for two years. It was $200k. It was about a wash between paying for the insurance and what was paid for the care.