[Sandra]

I’m looking for opinions regarding Long term health care insurance. Do you think it’s worth it?
I’m 61 and in excellent health.

If I purchase it now, it will be approximately $400 monthly.

The premium will not go up. The coverage increases 5% annually.

I probably wouldn’t need it for 20 years. Should I just invest that $96k?

[Frank]

Probably not. Unclear what it actually covers — unlikely to cover much if the premium is fixed.

[Farnaz]

Absolutely worth considering. At 61, and healthy, you still qualify. Consider some data. According to US Dept of Health and Human Services, over 70% of people over 65 need long-term care.

Senior and LTC residence costs can hit $100K+/year, and these costs are not covered under Medicare.

$400/month now protects your savings, your choices, and your family later—plus, waiting longer could mean higher premiums or denial.

Outside of a traditional LTC plan, you also have an option for asset-based policies which may be more beneficial depending on your situation.

Fortunately, or unfortunately, life happens; all you can do is prepare for it as much as you can.

[Joyce]

What is the elimination/waiting period for benefits to begin? What are the requirements to fulfill the waiting period, i.e., does the covered person need to be in LTC during the waiting period?

My parents had a LTC policy and the waiting period of 90 days was the reason neither one was able to claim benefits under their policy: they both passed before the 90 days had occurred.

They paid premiums for many years.

[Mary]

My mom, sister and myself had a LTC policy for a while and eventually cancelled because the premiums kept rising (especially my moms).

When we cancelled, we found out that we were still able to use the premiums that we had paid in if we ever qualified for LTC benefits (we would have had to qualify under how our policy was written at the time we canceled).

My mom does qualify now and is able to get 4 hours of care giving services a day paid for.

I think we have a couple of years left if we continue at the current rate.

I’m not sure the official name for this benefit but it would be something to investigate.

[Jill]

Since you asked for opinions… both my parents were in a facility – one in assisted living & one in memory care. Only one of them ever met the criteria mentioned – “unable to do 2 or more of the daily activities (bathing, dressing, toileting, transferring, continence and eating).”

It might sound like they are easy metrics to meet but even when in memory care for 2 years, only during the last 9 months was the criteria met.

One never did meet the criteria and they were in assisted living for 3.5 years. So, after a total of 5.5 years, they would have had *any* qualifying time of 9 months.

Those 9 months cost us roughly $63k. The other time was roughly $336k. This is why I am self insuring.

Best of luck with your decision. Fear does heavily play into this decision but talking with an advisor should help you decide where to put your money (investing or LTC) so you are most comfortable.

[Tracy]

My mom paid $5000/month for assisted living and now pays $10,000/month for skilled nursing home.

It’s so expensive!

[Janice]

I have a friend who recently discovered that her policy only provides benefit in the state where it was purchased (MD).

She now lives in FL.

[Scott]

One point to note from our experience…the claims process is arduous. Think of your worst experience at DMV or the post office…that would be a great experience with the LTC companies (and few of our interactions were ‘great’ by that standard, most were worse, much worse).

Said differently you need to know who will claim for you as almost by definition when you get to the physical and mental state that you qualify for benefits, you will not be able to manage it.

Despite the claims to the contrary many policies have changed their term, with regulatory approvals.

While the specifics may vary the revised policies usually have higher premiums, lower coverage or some combo.

There is no one size fits all answer but typically there is a zone where you have too much money to qualify for Medicaid but not so much that you can self fund.

Part of that zone depends on where you live and the cost which varies considerably across the country.

[Rick]

It’s so difficult to evaluate. Think of how it is sold. How emotions are always a part of the sales pitch. Add in the uncertainty of the entire ltc industry.

Add in how the entire product and services it may cover has changed in the last 20 years and spin that forward 20 more years. And. And. And.

I cannot imagine anyone buying another investment like an etf, a rental property, a business with that messy stack of info. In fact, I expect such an investment would get laughed at or sued out of existence.

So, for me, the next best alternative of self funding via a big nest egg is superior in so many ways.

Not all. But so many. And so, it wins my vote here and by my action of saying just no to ltc insurance.

[Gail]

My husband, who is 67, has been in a memory care facility since December.

I’m so glad that we purchased long term care insurance so that finances didn’t have to be a part of the decision on the best care for him.

So many others in our medical situation are miserable because they can’t afford the care they need.

I would buy the insurance before it’s no longer available for you to purchase.

[Bill]

Unfortunately that market place is broken. Check the policy caps. It’s typically $x per day up to $y. And if you just invest the premiums, it ends up >>>y.

It’s not unlimited coverage so it’s often best to just set aside that much money in your budget.

[Joel]

I have a LTC policy and am considering it an important part of my Retirement Planning.
It’s insurance so I absolutely hope I loose and never have to make a claim.

It’s an older policy that was sold for very low premiums and very high coverage.

We have had significant premium increases, BUT they are less than the going rate for a new policy.

The way I look at it, is I got a Fantastic deal that has morphed into a Reasonable one.

I am not a LTC expert (unfortunately conversation with one was shut down above).

That said, I know enough to look for a policy that:
– Has a reasonable limits (daily, yearly etc)

– Will pay claims if you are cared for by family, friends or non licensed providers
– Provides a Concierge service to help you navigate claiming and related medical issues.

– Is Medicaid compatible
Unfortunately, my wife is not insurable so we are self funding for her care.

Important Note on Self Funding:
– You MUST segregate the funds and invest them conservatively. You cannot afford to loose significant principle.

– Every few years you need to review LTC costs and adjust your Self-Funding assets accordingly.

– Your House alone is NOT a self funding mechanism—unless you live alone and there is someone to sell the house for you.

– A HELOC or a Reverse Mortgage Line of Credit on the house is a better self funding solution using your home BUT there are costs.

Lastly, there isn’t a great solution since the costs of care are rising faster than headline inflation.

[Linda]

Also… if your health starts to fail and you don’t have the money to cover long-term care, consider relocating out of the country.

There are a million hurdles there as well.

But some countries offer quality care for a pittance compared to the broken healthcare system in the U.S.

[Author]

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