long-term care insurance - good idea?

[Anonymous]

My company is offering us the chance to get a group rate on long-term care insurance.

On the upside, we do not have to undergo the medical underwriting. But a policy is still expensive and since a number of companies have gotten out of the LTC business or raised premiums (forcing elderly clients to drop coverage), I am wondering if we will be paying into a system that will disappear in 5-15 years. Or will the company come up with 1,001 excuses about how they don't have to pay out our claims?

The costs of LTC are staggering and frightening. But we have a mortgage, a toddler, retirement plans and 529s to fund, so the prospect of giving several thousand dollars annually to insurance companies, which are notoriously untrustworthy, is also worrisome.

1) Do you have LTC insurance? Do you think it is a smart move? What do I need to check out to make sure I don't get burned?
2) Does anyone have experience filing LTC claims, perhaps for a parent or grandparent? Did the company ever pay up? Would you recommend it?

[Anonymous]

If you have a solid retirement savings plan, I vote no.

My theory on any insurance is that you end up paying in exactly what you get out, plus the insurance company's profit. IOW, more than it would cost you to simply cover your own expenses later in life.

Save for retirement, pay off your mortgage, and stay healthy.

[Anonymous]

I don't know if I'd get it now but watching my grandmothers' age has been eye-opening. They are both in their 90s and have enough issues where they can't live alone anymore but a nursing home or home health aid will bankrupt them in 2 years tops. They currently live with family but it's not tenable.

[Anonymous]

I think it's not a good investment. Plus with insurance you never know if you'll get paid.

[Anonymous]

We looked long and hard at this issue and decided it didn't make sense to buy before our 60s, and hopefully by then we'll have enough saved that we'll feel ok skipping it. But one set of parents, with a fairly small nest egg, did decide to buy it.

[Anonymous]

I have long term care insurance and I'm glad I do. Of you have assets more than $300.0 but less than they say $2M-5M, it's a good idea. Just buy what you can afford with a larger daily benefit and smaller number of years ( say3-5) to save based on history of claims. Get inflation protection , ideally 5% but 3% would work for cost savings.,fibre premium increases of 15% every 10 years now that the currents hikes have settled down. Check out partnership policies if allowed in your state as you can protect those assets up to amount of benefits ifmyoumneed more on Medicaid ( requires 5% inflation policies). Go with a LTCi agent to see options as premiums can vary widely. Review financial ratings and prior premium hikes of company. Group policies are not always cheaper than individual unless you need help to avoid stringent underwriting. Even if you can't afford as much as you want buy what you can to relieve a possible future burden

[Anonymous]

If you are over 60, yes. If you have any disability, it will cost you a fortune. Your chances of having a disability that goes through your retirement funds are something like 1 in 6. People don't die as young anymore, they become disabled, or unable to live alone.

[Anonymous]

I've read that around age 50 is the 'sweet spot' for buying it, assuming you have no special expectation of needing it before that age (or having something diagnosed before then that would make you uninsurable.)
As to whether its worth it, you could save money specifically for long-term care outside of an uinsurance policy, but realistically would you? If not, then it is a good thing to do.
I am not at the sweet spot yet, but I definitely plan to buy when the time comes. A single mother with one child, I do not plan to be a burden, either physical or financial, to my son.