My mother had a very good LTC policy that she started paying into in her 50s. At 83, when she started to decline and I was finally able to get into her finances, I discovered that she had just forgotten to pay the premiums for 2 years (there's like a one year reinstatement possibility). A tragedy because she was already mid stage dementia and is now in memory care and could have used that money (plus she lost how much she put into it over the years).

We are considering a life insurance policy with a long term care rider. Our financial advisor suggested Lincoln Money guard Market Advantage. If you don't use it, it becomes a death benefit for your spouse/heirs, there are various options for inflation protection, return of premium, etc. If you do, the money that you invest either at once or over 10 years (you can shape the portfolio) is income tax free for qualified expenses which can be in home care or assisted living, memory care, etc. Its a lot better than what happened with my mom, which was to pay a shit ton into insurance and then lose it with no benefit whatsoever. I'm still trying to wrap my head around whether its better to do the insurance product or start to build a robust health savings account. Not sure I could put enough in there for significant long term care though since I'm starting in my 50s.

I specifically chose a policy that has no restrictions on how the money is used and does not require submitting receipts and waiting for reimbursement. If I ever need to pull the trigger, the company simply sends me a check each month to use however I wish--for a nursing home, for an in-home caregiver, for a driver, for whatever I want.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I purchased LTC in early 30s (now 50s) and pay $900/year for $50k/year coverage. Unlimited coverage period.

I did it because a relative needed rehab care after an accident in their 30s
and LTC would have covered costs for their 6 months of rehab (or in my case…would cover some of the costs as those costs would exceed call it $4500/month though hard to know how normal insurance plays into it).

Figured it’s a small price to pay for some financial backstop and have assets to cover the rest (hopefully).

That is not a big payout and you’ve been paying for 20 years? If you took that same money and just invested it by the time you needed it I don’t know how much of a difference it would be.

Because you assume it’s only paying out when you are 70+ vs at 35 (hence the accident example).

This is what people keep ignoring about LTC…it covers you at any age.

How much do you pay for car insurance when you never have an accident, homeowners when you never file a claim?

The likelihood is much higher that you’re gonna have a car accident or homeowner issue when you’re younger than that you’re gonna need LTC.

Not really...the fastest growing claimant group for LTC by far is 30-60 and the %age of claimants under 65 is now 35%.

The point is that most car accidents aren't massively expensive for the most part, and in fact most homeowners' claims aren't massively expensive either. It's rare to have a homeowners' claim over $25,000 with the median at $15,000.

Obviously, people think of Florida and your house getting wiped out, which is why now those premiums are coming to $15k-$20k per year.