cognovimus wrote: ↑Thu Aug 15, 2019 12:39 pm
WOW, I'm still interested in the names of insurers that offer this. The traditional LTC quotes I have received (Transamerica, Mutual of Omaha) didn't offer 5/5 plus another 5 years of coverage and the coverage doesn't equal even today's SN cost in my state. (I know many people don't end up needing that, but it seems pointless to get a policy that doesn't even cover today's costs).
You mentioned that you will be "co-insuring" so it sounds like your policy wouldn't cover all the care either. See, I'm not enthused about paying up front and then still having to pay when I get on claim. To me, part of the value of getting LTC insurance would be the opportunity to get it and forget it.
You mentioned ditching the inflation protection; that would leave me with only $180/day in benefits which is clearly too little. Others I've spoken with said LTC is worthless without inflation protection. Obviously there are many conflicting opinions.
Finally, a lot of the quotes I have are for hybrid policies. Can you tell me the difference between "fake hybrids" and "true hybirds'?
If a moderator gives me permission to share the name of the insurer, I will do that.
80% of the people who need long-term care, receive their care AT HOME, not in a facility.
Don't buy a policy based upon the cost of facility care. Base it on the cost of 8 to 12 hours of home care per day (or the cost of a live-in home health aide which is about equal to 8 hours of home care). (Silk McCue can correct me if I'm wrong on that point).
Keep in mind that many expenses you have now, you would not have if you need long-term care. You probably won't be going away on vacation. You won't be golfing or skiing or horseback riding or boating (or whatever other hobby you have). A lot of your discretionary income can be re-allocated toward the cost of your care and combined with your policy, will minimize the amount of assets you have to liquidate.
Here's the #1 reason, though, that you should own some long-term care insurance.
When you need care, your wife and children will not have to decide who's going to take care of you (because they don't want to have to liquidate any of your retirement savings). They'll say, "Get out the LTCi policy and start the claims process." Buying a policy on yourself is one of the best gifts you can give your spouse and kids.
When my mother-in-law's health turned south a couple of years ago, there was no bickering between her 3 kids about what to do. She'd paid her premiums and now it was time to collect. She's already received 3x in benefits what she paid in premiums and she still has over $200,000 of benefits left in her policy. In addition to having no stress between the adult children, they also saved over $100,000 in capital gains taxes by not having to sell off her rental properties to pay for her care.