Long-term care insurance

[Anonymous]

Anonymous wrote:We retired with $3 million in the bank (brokerage and retirement funds), a small pension ($3k/month), and a paid off $1.2 million home (conservatively, of we had to have a fire sale tomorrow). Early 60s, have health insurance covered through a previous employer. We were told not to bother with long term care insurance because the policies today arent worth the paper they are printed on (won't make a dent in the cost of care) or are so expensive that we are better off paying out of pocket

Very true. Most policies are not wroth much because the companies might not even be solvent when you need them. They don't count on people living to 85+ and spending more than 5-6 months in LTC. If they have to pay out for the full 2-4 years (or forever like some) they go under

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I tried to get it but an obscure non-verified diagnosis five years ago DQ’d me. It was a hybrid plan- $126k cost for nine years of coverage starting around $6k a month with a COLA. It would have paid out over $1.4 million if the entire thing was used.

Needless to say I now have to self insure. My mom’s care is roughly $7-9k a week at this point.

Serious question. How can we say we are proud to be Americans with this kind of highway robbery? I don't care what illness someone has. $7k per week is simply a shame.

This then beg the question, if someone at some point has to pay this much, how can a yearly salary under $1 million be a good salary?

We are royalty f*&#d

Average lifespan of a nursing facility patient is 13.7 months, and 53% die within 6 months. It is a crazy amount, but based on fairly short life expectancies once someone enters the facility.

This assumption got my parents into trouble. My parents' financial advisor kept telling them "You're fine, you're fine" and when I pressed that 4 years of memory care could wipe out all of their savings, he replied with the above quote - most people only need nursing home care for a year.

But this completely ignores that my dad was very healthy and has a family history of dementia. It is very possible that he'll need 2+ years of memory care. We are already planning to start the Medicaid forms next year once they spend down their savings enough to meet the Medicaid limits ($12k/month memory care, but they are already nickel diming us on extra costs). Fingers crossed that Medicaid still exists and that his facility will actually accept it when the time comes.

Memory care can and does often last more than 1-2 years. You can be totally healthy otherwise and start with alzheimers/dementia. My relative lasted almost 6 years and was still in the "lower level" and was just heading to the more advanced memory care when they passed. But had they not gotten the flu (actual flu) they might have lasted much longer (they have a family history of living to 100+) Sure the stats say 1-2 years at most, but for the 50% above that, it can drain your finances