I’m not one who likes to be over insured but my wife has been thinking about it for some time. She got a couple quotes and I found out that my employer has a plan as well. Being in my 50’s, I have a hard time paying for something that ‘might’ need in my 80’s. Currently dad is in his mid 80’s and is in excellent shape. Even though my family tree is fairly healthy into the latter years, my wife’s side is less lucky.

From what I gather, the LTC policy would help pay the bills only after we have not been able to carry out 2 of 5 basic daily tasks after a 90 day elimination period or chronically ill.

The policies I have seen range from 2, 3or 6 years with a potential with a lifetime option depending on how much money that you want to pay. Also, the amount of monthly benefit varies and the premium changes with the amount of monthly payout you may think you need. An inflation adjustment option is also available to cover any increases in the care between now and when one may need it.

So, I’m confused. What to do. At a monimum I’m thinking on getting a policy for my wife as she has more medical issues than me. I also read that the mid to late 50s is the right time to secure a LTC plan. Yes the premiums are less the earlier one signs up but I don’t want to piss money away either (well, more than I do now).

I’ve seen policies from Pudential, Transamerica, Mutual, OneAmerica and from my employer. My employer plan is clearly the lowest of the 5 as far as premiums are concerned and I can keep it in the event I no longer work there.

Any comments, concerns and things to look out for when getting a LTC policy? Again, something I don’t want but could likely be good to have some day in the future.

Thanks.

My parents are 71 and have long term care insurance through State Farm for an unknown amount of time. Over Christmas, my mom, who has Parkinson's, started to not be able to take care of my dad anymore, who is on Hospice with pancreatic cancer. We got dad into respite care and then switched that over to him being in a nursing home and we are talking with a company that will have a nurse come in each morning for at least 3 hours to help my mom. My brother and I are 6 hours away with work and families. I don't know if they will get out of it what they've paid for it over the years, but nursing homes run around $6K a month now. I think their policy only has a 1 month elimination period but evidently the Hospice care might take care of that. Its basically wealth insurance, because your other option is spend down everything and go on Medicaid.

I'm glad that my mother had the foresight to avail herself of such a policy. When she moved to an assisted living facility (not covered) and then to their memory-care unit (covered), it certainly helped. In the memory care unit the monthly tab was >$9K and the insurance paid $3K of that.

Good luck with your decision.

Adios,

Pizza Bob

In for the conversation as this is something we struggle with as well.

In reviewing future retirement plans with my CPA and CFP, they both said it's not worth it. The original policies from a few decades ago were useful, but ended up bankrupting many of the companies. The ones being written today are much more restrictive and much less likely to pay out.

Since my only "blood" relatives are 2 nephews in their 30s, my long-term care pretty much falls to me. While I do have significant savings/investments and possibly would be able to adequately cover my end-of-life expenses, I also have a LTC policy with Banker's Life. It will cover monthly expenses for up to 3 years. Since the average time a person spends in such facilities is less than that, I think I'm covered.

flashguy

Very tough call. My parents were both in Assisted Living and then, later, in Long Term Care toward the end of their lives.

Either place was very, very, expensive. LTC was $13K each, per month, plus medications, IIRC.

We were fortunate that they were able to pay, having worked hard, lived modestly, and saved constantly during their lives.

Being able to “private pay” ... whether on your own or with LTC insurance... was absolutely critical in getting them into a top LTC facility. Almost every place takes Medicaid + Medicare, even many really great facilities, but spaces are limited. Sometimes VERY limited. Being able to “private pay” basically moved my parents to the top of the list.

What’s interesting is that once you’re admitted “private pay” most places won’t kick you out if you spend-down your resources and are left with Medicaid. And, interestingly enough, where my parents were the staff was prohibited from knowing which patients were private pay and which were Medicaid. So the care was identical.

So, what I’d recommend is having about a year’s worth of money to private pay LTC (either in savings or using LTC insurance). That should be enough to get you admitted. After that, you won’t be thrown out and Medicaid will pay in any case.

Peter

quote:

Originally posted by MNSIG:
. The ones being written today are much more restrictive and much less likely to pay out.

This is my concern as well. the policies state that the insurance company has to approve the request to release payment. That leaves me skeptical of the policy.

We purchased "money guard" from Lincoln Financial. Basically a life insurance policy that pays out benefits as a long term care policy. If you die without using it, you get at least 100% of your premium back as a death benefit. If you use part of it, say for a year in LTC, you get the death benefit less whatever was paid as LTC benefit. So your max cost is the loss of interest on your money.

Worth looking into if you are concerned about leaving money for you children after you are gone. Bought it from my neighbor who is an Edwrd Jones agent. I asked my accountant about it and he said that is all he recommends.

quote:

I have a hard time paying for something that ‘might’ need in my 80’s

Most people 'do' need LTC at end of life. If you make it to 60 there is a very, very good chance you will need it.

I'm so far removed from the business, but I did sell it for years. The policies I sold were very generous and ended up being huge losses for the insurance companies. Starting about 12-15 years ago the policies got a lot more restrictive, less players in the market, and much higher premiums.

I recommend it for most people, but with the changes in coverages and premiums I can't make the analysis anymore especially without a lot of your personal information. I suggest you talk to a financial planner and get recommendations and options from them before purchasing it on your own.

 
My Dad had the opportunity, in 1990, to purchase LTC insurance via my brother's employer (Sears). The offer was for employees and/or their parents. He paid two months of premiums, then suffered severe kidney damage requiring dialysis and LTC. With the inflation thing built into the policy, he lived for 9 years in a nursing home, fully paid by the insurance. First time I've ever heard of anyone "getting it over" on an insurance company. He did live in a small town, where the nursing home rates were half what they were in MD.

My MIL had LTC insurance and when the time came for her to go to assisted living everything was covered. When my mom had to go to assisted living she did not have LTC insurance and basically worried herself to death (given she only had three years worth of monies to stay in LTC). My wife and I both purchased an LTC policy for ourselves. Being in our 50's it was expensive, but given what we have been through seemingly worth it.

quote:

Originally posted by PeterGV:
Being able to “private pay” ... whether on your own or with LTC insurance... was absolutely critical in getting them into a top LTC facility. Almost every place takes Medicaid + Medicare, even many really great facilities, but spaces are limited. Sometimes VERY limited. Being able to “private pay” basically moved my parents to the top of the list.

What’s interesting is that once you’re admitted “private pay” most places won’t kick you out if you spend-down your resources and are left with Medicaid. And, interestingly enough, where my parents were the staff was prohibited from knowing which patients were private pay and which were Medicaid. So the care was identical.

To clarify a bit, Medicare does not pay for custodial care (nursing home), which I'm sure you know. But there are lots of folks out there on Medicare who don't realize that. The only time Medicare pays for custodial care is for about 100 days if the patient is coming from a hospital discharge and requires skilled nursing care.

Also, not every nursing home has Medicaid beds. You're right, though, the care in the facilities that have private pay and Medicaid beds is the same, with the exception that the Medicaid beds are typically in semi-private rooms.

There can be a very long wait for a Medicaid bed in a good facility. In my area the wait can be as long as 12 months. People fail to understand that just because they finally get their parent qualified for Medicaid, it doesn't guarantee that a bed will be available in their facility of choice.

As you said, sometimes the best strategy is to get into the facility you want as private pay and then work with the management and get on the waiting list for a Medicaid bed. It's usually quite workable to arrange for a bed to be available when the resident has spent down and qualifies for Medicaid. Then all that happens is that they are transferred over to a Medicaid bed, which means they may lose a private room.

If you were ever in the military you might qualify for a long term care from the VA. God Bless

quote:

Originally posted by VBVAGUY:
If you were ever in the military you might qualify for a long term care from the VA. God Bless

Good info! I am a vet (three years active duty Army) and getting a pension/TriCare (23 years in the ANG). We have a facility a few hours away I've never considered:

https://ivh.iowa.gov/

Does the VA program apply to a local nursing home as well? Would Mrs Sigmund (not a vet) be covered?

quote:

Does the VA program apply to a local nursing home as well? Would Mrs Sigmund (not a vet) be covered?

The VA has homes that are covered under their umbrella. They are on the order of family care homes and are of varying quality. If you are enlisted, the Armed Forces Retirement home here in Gulfport MS is a really good deal. There is a pretty long wait list. It is brand new, rebuilt after Katrina and right on the GOM. LINK: https://www.afrh.gov/gulfport-residents