s/o to cost of assisted living - do you have LTC insurance?

[Anonymous]

When does it make sense to get LTC insurance? I was offered a quote of $80 per month to receive a daily benefit of $150 but I am in my mid-thirties. If you have it, what made you get LTC insurance?
For those of you with parents that need LTC now, did they get the insurance? How do they pay for their care?

[Anonymous]

I just heard somewhere (Clark Howard, maybe?) that you should begin buying it in your 50s and that you should seek out a VERY reputable company, so they will be around when you need them.

[Anonymous]

I agree with PP. Buy in your 50s but get a better benefit than $150 a day. I would go for the highest daily benefit you can afford.

[Anonymous]

You want to hear something really annoying?

The new Obama health care plan included a government run long term care insurance program and the premium would have been significantly less than private companies. The repulicans fought to have it removed as part of their debt reduction plan. I'm pretty sure they suceeded and it's been done away with before it was even rolled out.

Having been through long term care situations with many family members I know how financially devastating it can be. Even if you have plenty of savings it goes pretty quick if you require care for 5+ years. If you run out of money you will either be your families problem or you can be put in a "budget" nursing facility paid by Medicare. It scares the shit out of me.

[Anonymous]

Said this on the other thread, but no we don't. I'm married to a nursing home administrator who runs long term care and assisted living. They don't find that it pays anything more than Medicare will so it's not worth it.

[Anonymous]

Anonymous wrote:Said this on the other thread, but no we don't. I'm married to a nursing home administrator who runs long term care and assisted living. They don't find that it pays anything more than Medicare will so it's not worth it.

Really? Ours isn't that way.

We're in our mid and late 40s. We pay $2000/year for LTC. I saw my mother, who's in her mid-70s, pay close to $800K of her own money/investments to care for my father b/c he had Parkinson's.

Who has that cash lying around just to pay for CNAs to come to your home for 8-hr shifts? Add in diapers and medicine and hospital beds, and you've sucked up close to $80K a year. Those are expenses ON TOP OF daily living expenses. Thankfully, they never had a mortgage.

We invested right after Dad died.

[Anonymous]

I got my LTC w/maximum daily benefit and inflation adjustment etc. in my late 20's through a company that I was working for. I only pay $30/month for it and I was able to keep it after I left employment with this company. It is a good policy through a good company, but I don't think I could afford it if I had waited until my 50's.

[Anonymous]

I guess my fears are: 1. what guarantees are there that the premia wont rise so much that you can no longer afford it, and 2. I hear horror stories of companies denying claims so much that the policies are virtually worthless.

We will have our house paid off, a reasonable pension, and some savings. I don't see the need to leave anything to my kids - I will have paid for their education and after that they are on their own. I appreciate that even these assets might not be enough if we last for a very long time in very expensive care, but hopefully we will be so gaga by the time we are moved into the medicaid home that we won't know or care. If I find myself in the early stages of dementia or alzheimers I will do my best to head to Switzerland or somewhere where I can die with dignity.

[Anonymous]

I am planning to shop for it when I hit 60 or so (hoping to avoid carrying both disability and LTC at the same time

This is a relatively new insurance product, so I feel like waiting makes sense to see what products become available, whether premiums rise, whether cos. are paying claims etc. is worthwhile. I don't think it's a slam dunk decision to get it or not.

One set of parents decided to self insure and one, with less assets, decided to get some LTCI.

[Anonymous]

Anonymous wrote:Said this on the other thread, but no we don't. I'm married to a nursing home administrator who runs long term care and assisted living. They don't find that it pays anything more than Medicare will so it's not worth it.

Uh, Medicare doesn't pay for long term care and assisted living. Medicare covers basic medical care, but not long term care in a nursing home or assisted living facility. Medicare will only cover the first three months of nursing home care, following a qualifying hospital stay. After that, the resident/patient must pay out-of-pocket or apply for Medicaid.

[Anonymous]

12:07 again.

"Medicare does not cover indefinite, long-term care. Medicare does not have coverage for people who need to go into nursing homes indefinitely because they are disabled or can no longer take care of themselves. Medicare also does not cover assisted living or adult daycare."

http://www.webmd.com/medicare/medicare-and-long-term-care

http://www.medicare.gov/longtermcare/static/home.asp

[Anonymous]

We are in the process of acquiring it now. MIL passed away this year and we were going through her funds at an astonishing rate paying for LTC. Medicare and the burden on us would have been tremendous if she hadn't passed away before running out of money (which would have happened by year's end).

DH and I are older parents and decided that we wouldn't want a traumatic incident now or simply old age requiring LTC to negatively financially impact the wellbeing of the other spouse and DC. We decided it wasn't a matter of protecting inheiritance but instead just protecting current standard of living. Our financial advisor recommended it. My father, who retired from the insurance industry, does not believe in its value. So although we are receiving conflicting advice, we decided better something than nothing was peace of mind.

[Anonymous]

Anonymous wrote:I agree with PP. Buy in your 50s but get a better benefit than $150 a day. I would go for the highest daily benefit you can afford.

make sure there is an inflation rider and don't discount the importance of home health care coverage - most of us will want to age in our own homes.

[Anonymous]

bought in early 40's, decent company, but pricey, though I am in good condition

[Anonymous]

9:48 here. I'm not going to trynto convince anyone that they should nor should not buy LTC insurance. Just saying that I am talking with people in the business and others are getting theirnadvice from those who sell insurance and whonwill make a profit from the sale. If you really want to understand what you need, I'd suggest talking to an eldercare social worker, not an insurance person.