Reply to Decided to purchase Long Term Care insurance

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[quote=Anonymous][quote=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).[/quote]

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.[/quote]

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