We’ve researched it, priced it, and decided to self insure.
And this is as we’ve dealt with FIL moving to a nursing home (lasted 5-6 months before passing) after a decade of in-home care – much of it in the granny flat we built to accomodate his mobility issues and dementia. MIL is nearing the point of needing to be in a facility due to dementia.
The biggest issue with LTC insurance is that there is no cap on how much the rates can go up. On the early retirement forum there are accounts of rates going up 20% in a single year… so after paying in for 10-15 years it suddenly busts the budget… do you keep it because of the sunk cost, or do you cancel it – and eat the sunk cost…. I have decided against going down that possible path.
For us – we have a paid for house that includes a granny flat that is wheelchair accessible and friendly. (We’re betting we won’t need it before the kids have flown the nest.) We can move to the casita, and hire in home help. When that becomes untenable, we sell the property, community spouse buys a paid for condo, and the extra equity funds many years of LTC. That’s our plan B and has been for a while.
