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Long-Term Care Insurance
Posted on 12/26/22 at 1:59 pm
Posted on 12/26/22 at 1:59 pm
My wife and I just turned 50. After what we are going through with her mom and what we went through with my mom, I want to make sure that my kids have absolutely nothing to worry about if we become unable to care for ourselves. First question, is long-term care insurance actually worth the money? Second question, is 50 about the right age to begin this insurance?
This post was edited on 12/26/22 at 2:01 pm
12
Posted on 12/26/22 at 2:05 pm to auwaterfowler
Yes. Almost always prohibitively expensive.
Posted on 12/26/22 at 3:07 pm to auwaterfowler
Traditional is getting really expensive. Hybrid types are ok if you can afford it.
Posted on 12/26/22 at 5:45 pm to auwaterfowler
At age 50, it’s almost prohibitively expensive.
As someone said, a WL with LTC (long term care) rider is prob way to go, but it’s expensive as well.
I’m 39, with elderly parents (70’s), and we are budgeting $4k/month for their care in the nearer future.
As someone said, a WL with LTC (long term care) rider is prob way to go, but it’s expensive as well.
I’m 39, with elderly parents (70’s), and we are budgeting $4k/month for their care in the nearer future.
Posted on 12/26/22 at 6:09 pm to auwaterfowler
It’s when you should start looking at it. As others have said, it’s getting prohibitively expensive. For perspective, the last handful of times I’ve presented it to clients not one of them has purchased. These people can afford it but the risk/reward is so low now. To get a Cadillac is beyond stupid pricing. Think $8,000ish. If you have this kind of money you likely can afford a life insurance or annuity product. But then you don’t make hardly anything on the money. You can water it down for $4,000ish but that’s still pretty pricey for just bare bones.
I have a client with what used to be an affordable Cadillac from 17 years ago that has had their premiums go up 15%, 15%, 20% in different years, and again 20% this year. Eventually, having to water it down to afford the premiums.
It’s insane. It’s worth it, but rapidly pricing itself out of viability.
ETA. I’d like to add a comment if it wasn’t clear… if you have $8k/year to gamble on insurance (you’re betting you need it) then the return should be greater than what you could make if you invested the 8k at 7-8%. When you water it down, those numbers get much closer together when there’s a reasonable chance one of you won’t need it.
I have a client with what used to be an affordable Cadillac from 17 years ago that has had their premiums go up 15%, 15%, 20% in different years, and again 20% this year. Eventually, having to water it down to afford the premiums.
It’s insane. It’s worth it, but rapidly pricing itself out of viability.
ETA. I’d like to add a comment if it wasn’t clear… if you have $8k/year to gamble on insurance (you’re betting you need it) then the return should be greater than what you could make if you invested the 8k at 7-8%. When you water it down, those numbers get much closer together when there’s a reasonable chance one of you won’t need it.
This post was edited on 12/26/22 at 6:17 pm
Posted on 12/26/22 at 6:57 pm to UpstairsComputer
Hybrid insurance is expensive but it’s even more expensive if you don’t have it and need it.
A solid policy will probably cost between $5k-$10k/yr at age 50.
A solid policy will probably cost between $5k-$10k/yr at age 50.
Posted on 12/26/22 at 7:32 pm to auwaterfowler
What companies sell this product?
Posted on 12/27/22 at 7:59 am to Billy Blanks
New York Life and most other insurance companies. The other option is to self fund. Long Term Care only covers around two to three years, so you need about $200K to self fund it.
Posted on 12/27/22 at 8:35 am to auwaterfowler
As an example of the amount of money you will need for care, my MIL has a home health sitter from 8 am to 8 pm 7 days a week. This works out to about $8000 a month. It would be double that for 24 hours a day.
A nice retirement/nursing home in BTR is about $3500 which includes meals but doesn’t include bathing/dressing/feeding assistance. They do provide those extra services, but the cost goes up.
She does have a LTC policy bought years ago through Knights of Columbus which provides $3600 a month which helps. I can’t imagine how high a LTC premium would have to be to fully pay for at home 24/7 care. Her premium was $3500 a year but she’s been paying it for decades.
A nice retirement/nursing home in BTR is about $3500 which includes meals but doesn’t include bathing/dressing/feeding assistance. They do provide those extra services, but the cost goes up.
She does have a LTC policy bought years ago through Knights of Columbus which provides $3600 a month which helps. I can’t imagine how high a LTC premium would have to be to fully pay for at home 24/7 care. Her premium was $3500 a year but she’s been paying it for decades.
Posted on 12/27/22 at 8:50 am to Billy Blanks
John Hancock
Lincoln
Prudential
Protective
AIG
Find an insurance broker and look at options of GVUL w/ chronic illness or LTC riders.
Lincoln
Prudential
Protective
AIG
Find an insurance broker and look at options of GVUL w/ chronic illness or LTC riders.
Posted on 12/27/22 at 8:53 am to auwaterfowler
In 5 years it’ll be standard practice to euthanize for a stubbed toe
Kamalacare is coming and our board doctors are gonna call you a science denier if you don’t support it
Kamalacare is coming and our board doctors are gonna call you a science denier if you don’t support it
Posted on 12/28/22 at 2:33 am to auwaterfowler
quote:
My wife and I just turned 50
Starting at 50 seems nuts to me. If you are that concerned I think over funding a retirement account makes a heck of a lot more sense. It’s really easy to get persuaded by the crazy stats people throw around but unless your family (kids) suck or you want to be very stubborn and picky, there are other options to help make it more affordable in worst case scenarios.
Posted on 12/28/22 at 5:55 am to baldona
My dad has an old school Lincoln Moneyguard that has an unlimited benefit period.
Posted on 12/28/22 at 7:32 am to amgslg
quote:
A nice retirement/nursing home in BTR is about $3500
This number is low. I’ve run both my parents through the system at $5k and considerably more for dementia care.
Posted on 12/28/22 at 8:08 am to auwaterfowler
I'm in my 30's. Guess it's something I should look into.
Posted on 12/30/22 at 7:45 am to auwaterfowler
Saw a statistic claiming 70% of us will need some type of LTC later on in life. I took a LTC policy with John Hancock thru USAA @ 107.00 monthly. Hopefully will never need to use it.
Posted on 12/30/22 at 7:53 am to DRTiger67
So stupid question perhaps - what covers these Ltc type services if someone is literally by themselves late in life (maybe didn’t have kids and spouse passed leaving with nothing).
Saw someone has dementia and needs care or is otherwise not able to care for themselves and needs 24 hour care or at least the 8 to 8 help as mentioned above.
If said person has nothing and no other resources what happens. I’m assuming Medicare or something like that kicks in to help them or some other government funded program.
My grandmother was in a nursing home before she passed. There is no way in hell she had any Ltc coverage and my dad damn sure wasn’t footing the bill as he didn’t have that kind of money in his retirement years. Wondering how that was paid.
Saw someone has dementia and needs care or is otherwise not able to care for themselves and needs 24 hour care or at least the 8 to 8 help as mentioned above.
If said person has nothing and no other resources what happens. I’m assuming Medicare or something like that kicks in to help them or some other government funded program.
My grandmother was in a nursing home before she passed. There is no way in hell she had any Ltc coverage and my dad damn sure wasn’t footing the bill as he didn’t have that kind of money in his retirement years. Wondering how that was paid.
Posted on 12/30/22 at 7:59 am to Im4datigers
Looks like Medicaid pays LTC
Posted on 12/30/22 at 8:30 am to auwaterfowler
At 50, you may be best suited to just over-fund retirement/HSA.
It isn't long term care, but your current life insurance policies may have an Accelerated Death Benefit. If you have permanent life insurance, that could be one supplemental option to rely upon.
I just looked up a $312,000 permanent life insurance policy with best health classification on a 50 year old male at $449.47/month (policy is paid in full at 25 years). This has a $250k accelerated benefit for loss of 2 daily living functions or terminal illness.
Payment can be higher or lower if you want to pay it off younger or older.
This is best health classification, so obviously it only gets worse depending on health questions.
It isn't long term care, but your current life insurance policies may have an Accelerated Death Benefit. If you have permanent life insurance, that could be one supplemental option to rely upon.
I just looked up a $312,000 permanent life insurance policy with best health classification on a 50 year old male at $449.47/month (policy is paid in full at 25 years). This has a $250k accelerated benefit for loss of 2 daily living functions or terminal illness.
Payment can be higher or lower if you want to pay it off younger or older.
This is best health classification, so obviously it only gets worse depending on health questions.
This post was edited on 12/30/22 at 8:31 am
Posted on 12/30/22 at 9:13 am to auwaterfowler
It really depends on your financial situation. If you expect to have a sizable estate ($3 million +?), or a high value home that will be paid off, you’re probably better off self funding.
We’ve already told our kids the equity from our home will be used for LTC. If one of us needs LTC, then the other spouse would either move to the facility with them or get an apartment.
We’ve already told our kids the equity from our home will be used for LTC. If one of us needs LTC, then the other spouse would either move to the facility with them or get an apartment.
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