Long-term care insurance

[Hobie]

Our current health care system is set up to take care of those who are productive in society. When those folks get mental, medical, mobility, age related physical ailments, etc. long term care is severely lacking.

Not true. It is there, but hugely expensive. Do your parents have $7-12k/month per person for long term care available?

Can you afford to pay these kind of costs?? Time to look into long term care insurance for yourself. Just saying’.

It sucks to have to deal with this. When loved ones, who were once sharp and brilliant devolve into not able to speak, clean themselves…

Tough enough on the emotional side let alone the financial side. Do yourselves a favor ( really your kids )and buy long term care insurance.

Start early when it’s more affordable.

[Coronita]

How does long term care insurance work?

[Hobie]

This covers Nursing Home and in home care. Not medical treatment per se but costs for assisted living facility, aids to help dress, clean, feed people who are physically unable and living at home.

I’m told that if you are smart you would buy Long Term Insurance early in life. The policy would compound so you stop paying after a number of years. You can get policies adjusted for inflation and direct payout of remaining policy beneficiary.

Depending on what other medical conditions exist on top of a person with dementia, for example, can live for years but need daily assistance. Relying on family members to step in is not prudent. Medicaid will step in if the patient is destitute. Quality of care becomes an issue at that point.

[Myriad]

The general info out that is that LTC insurance is really expensive now and only provided by a few providers (since they vastly underestimated the costs a decade ago).
Is there some quantifiable data on the costs now at various ages?

[Alice]

The insurance companies messed up their actuarial models and tried to jack up their rates after making promises they could not afford: https://www.latimes.com/business/story/2019-07-24/long-term-care-insurance-disaster

[Hobie]

[quote=Myriad]Is there some quantifiable data on the costs now at various ages?[/quote]
http://www.insurance.ca.gov/01-consumers/105-type/95-guides/05-health/01-ltc/pol-comp-forms.cfm

Scroll to bottom of each carrier for rates. It sure would be great if there was an excel file of this data .

Good article Alice!

Here is data of rate increases:
http://www.insurance.ca.gov/01-consumers/105-type/95-guides/05-health/01-ltc/rate-history-active.cfm

[Coronita]

What choices do we have among the carriers of long term insurance?

[Hobie]

Cal Department of Insurance has some good stuff

List of Companies:
https://www.insurance.ca.gov/01-consumers/105-type/95-guides/05-health/01-ltc/upload/LTCRG2018PolicySummary-2.pdf

Select a company, pricing is at bottom of list:
https://www.insurance.ca.gov/01-consumers/105-type/95-guides/05-health/01-ltc/pol-comp-forms.cfm#PARTNERSHIP

As mentioned by piggs, not cheap any longer. And now it looks most have about a 3 year max cap on benefits. Except Knights of Columbus at a 10year cap.

I’m new to this so I am learning what the term language all means and slowly getting up to speed.

Note- for inflation they are using 5% compounding. Interesting when thinking about a 3 year benefit period and the difference in pricing.

[Coronita]

[quote=Hobie]Cal Department of Insurance has some good stuff

List of Companies:
https://www.insurance.ca.gov/01-consumers/105-type/95-guides/05-health/01-ltc/upload/LTCRG2018PolicySummary-2.pdf

Select a company, pricing is at bottom of list:
https://www.insurance.ca.gov/01-consumers/105-type/95-guides/05-health/01-ltc/pol-comp-forms.cfm#PARTNERSHIP

As mentioned by piggs, not cheap any longer. And now it looks most have about a 3 year max cap on benefits. Except Knights of Columbus at a 10year cap.

I’m new to this so I am learning what the term language all means and slowly getting up to speed.

Note- for inflation they are using 5% compounding. Interesting when thinking about a 3 year benefit period and the difference in pricing.[/quote]

Thanks for the info.

[temeculaguy]

I bought it about 18 years ago, sounded great and wasn’t too expensive to buy in my 30’s, luckily i was able to add Mrs TG a few years ago at thrice the price only because i had an existing policy. A few years back I tried to by my parents a policy and was told to pound sand. I hate to admit it, but it was a factor in why we got legally married from domestic partners so I could add her, well that and the step grandchildren starting to ask questions, grandma’s boyfriend sounds creepy. Sadly the benefits and price are long gone today. I got $150 a day benefit with no cap on length ($35/mo for me, $100/mo for her) but nothing today comes close. I honestly think the gov’t should make it a tax deduction or find other ways to encourage it because it reduces the public’s liability.

For those of you whose plan has an eye toward retirement, it’s essential but unfortunately no longer available. I’ve heard nothing from any politician on either side of the aisle about it, but it’s actually an opportunity for some politician to embrace. If you will have a six figure retirement income, medicare won’t cover your LTC, so it’s up to you. Sure $4,500 a month won’t cover the high end places, but it’s a nice offset. For the spouse of someone who needs it, they might be wiped out paying for LTC and keeping up the primary home. I’m glad Hobie brought this up, it’s a bigger deal than that lack of attention it gets.

But then again, my parents earthquake insurance policy in effect for almost 50 years has no deductable and 100% replacement value, I would love to buy that but it was long gone by the time I bought my first home.

Insurance companies are not in the business of losing money, if you are lucky enough to get a policy that ends up in your favor, keep it in force.

[The-Shoveler]

My Mother who is near 90 now has had to use in home as well as a nursing home care for brief periods over the last 15 years now.

Neither was really a good way to live long term.

Also beware of in-home care, I have heard stories of care takers emptying bank accounts etc… forcing will changes etc…

[Hobie]

Seriously, I think the government already has long term care costs on their radar. I think we are in agreement social security with become nonviable in the near decades.

Now you have a bunch of folks needing expensive end of life care and no way to pay for it, what is government to do. Answer: Physical assisted suicide.

Some politicians have been pitching the foundational ground work to sway public perception in this direction. Including shooting arrows at religious beliefs and institutions.

Risking the tin-foil hat club, you can argue devaluing life is already very active in the pro-choice movement couched in female rights.

Not to go full tilt political, but interesting to consider.

However, I still politicians are not necessarily that forward thinking, but always just looking for hot buttons to secure short term votes to keep themselves alive. (pun intended)

[Coronita]

Sigh… I will look into long term insurance for me and others …

But for me it seems a waste of money… I really don’t want to live if I have to be confined to an assisted living facility when I am old. I think the cheaper option for me would be to invest in a Smith and Wesson.

[Hobie]

While I disagree in principle to offing oneself, I now have a very different perspective on quality of life issues. Maybe if explicitly discussed in a medical directive so as the fam can hope to understand the wish to avoid pain, quality of life, burden to others, etc. and better cope. Then the bitter pill may be a bit more tolarable to all.

Qualification: Between you, your fam, God, and probably your long term doctor only. No government involvement at any level.

[Myriad]

[quote=Hobie]Now you have a bunch of folks needing expensive end of life care and no way to pay for it, what is government to do. Answer: Physical assisted suicide. [/quote]

If they really want to sell it, the government could offer an offset. Instead of spending $200k on Medicare, people that go for euthanasia, would get $50k in cash. Then people can go enjoy the $50k, and not spend a year in/out of hospital/hospice care.

I wonder what’s the % of people that just die before LTC really kicks in. The insurance companies have to factor that in too.
Sometimes I joke that if I can’t eat solid food or have to become a vegan, that seems like a good time to go.

[Author]

Posts