Long term Care Insurance

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
nclion
Posts: 49
Joined: Sun Nov 19, 2017 12:43 pm

Re: Long term Care Insurance

Post by nclion »

nclion wrote: Tue Dec 24, 2019 10:31 am Just out of curiosity, I ran some quick numbers at the Feds LTC site for a 63 year old to purchase coverage today with a inflation protection of 3%. I focused on the lifetime benefit, the max the insurance would pay vs. investing the premium to self insure. Now I guess I need to run these numbers through a investment calculator to see where the break even point is.

EDIT: I ran some number using a calculator from bankrate.com and added below the initial investment required plus the monthly investment to match the monthly premium payment. Period of investment is 10 years at 7% NOTE: the 3% inflation cost in not consider here, but neither is the increase in LTCi premiums. I hope this makes sense for those looking to fund their own LTC. Please provide feedback if you think my calculation are not correct.

Lifetime Benefit Premium Payment Benefit Amount Benefit Period


$109,500.00 $168.91 monthly 150/day 2 years - $50,000.00 initial investment with $169.00 monthly investment


$164,250.00 $247.71 monthly 150/day 3 years - $80,000.00 / $248.00


$219,000.00 $330.28 monthly 200/day 3 years - $105,000.00 / $330.00


$365,000.00 $489.79 monthly 200/day 5 years - $180,000.00 / 490.00
nclion
Posts: 49
Joined: Sun Nov 19, 2017 12:43 pm

Re: Long term Care Insurance

Post by nclion »

WoW2012 wrote: Tue Dec 24, 2019 10:36 am
nclion wrote: Tue Dec 24, 2019 10:02 am LTC is the one thing that I don't have a good feeling about as I near retirement. I have looked at insurance through work as a Fed, but I just don't like the cost of premiums vs. what you actually get in coverage. I also don't like the horror stories of those who try to collect after years of faithfully paying their premiums. That is why I have decided to just try to self insure even though I know our nest egg may not be enough for one or both of us if we need LTC for an extended period of time.

For healthy married couples, the group long-term care policy with the federal gov't is not the best value. Plus the fed program does not protect assets through any of the state "Long Term Care Partnership Programs" and the fed program is not under the Rate Stability Regulation.
Thanks for the feedback, I was under the impression that the fed coverage and rates would be hard to beat on the open market, I will have to do more research.
delamer
Posts: 10673
Joined: Tue Feb 08, 2011 6:13 pm

Re: Long term Care Insurance

Post by delamer »

nclion wrote: Tue Dec 24, 2019 11:25 am
WoW2012 wrote: Tue Dec 24, 2019 10:36 am
nclion wrote: Tue Dec 24, 2019 10:02 am LTC is the one thing that I don't have a good feeling about as I near retirement. I have looked at insurance through work as a Fed, but I just don't like the cost of premiums vs. what you actually get in coverage. I also don't like the horror stories of those who try to collect after years of faithfully paying their premiums. That is why I have decided to just try to self insure even though I know our nest egg may not be enough for one or both of us if we need LTC for an extended period of time.

For healthy married couples, the group long-term care policy with the federal gov't is not the best value. Plus the fed program does not protect assets through any of the state "Long Term Care Partnership Programs" and the fed program is not under the Rate Stability Regulation.
Thanks for the feedback, I was under the impression that the fed coverage and rates would be hard to beat on the open market, I will have to do more research.
WoW2012 may be right about healthy married couples. But one huge benefit of the federal program is that you can qualify with very minimal underwriting during an open season.

It’s the only way we could have obtained LTC for my husband.
CoastalWinds
Posts: 1063
Joined: Sat Apr 06, 2019 8:28 pm

Re: Long term Care Insurance

Post by CoastalWinds »

michaeljc70 wrote: Sun Dec 15, 2019 1:32 pm I don't think insurance is insurance. There is insurance for all kinds of things. There are extended warranties which is a form of insurance. You can insure your golf swing, your smile and whether there will be 1 foot or more of snow on Xmas.
I remember about 25 years ago when JLo insured her booty!
tj
Posts: 3927
Joined: Thu Dec 24, 2009 12:10 am

Re: Long term Care Insurance

Post by tj »

WoW2012 wrote: Tue Dec 24, 2019 10:36 am
nclion wrote: Tue Dec 24, 2019 10:02 am LTC is the one thing that I don't have a good feeling about as I near retirement. I have looked at insurance through work as a Fed, but I just don't like the cost of premiums vs. what you actually get in coverage. I also don't like the horror stories of those who try to collect after years of faithfully paying their premiums. That is why I have decided to just try to self insure even though I know our nest egg may not be enough for one or both of us if we need LTC for an extended period of time.

For healthy married couples, the group long-term care policy with the federal gov't is not the best value. Plus the fed program does not protect assets through any of the state "Long Term Care Partnership Programs" and the fed program is not under the Rate Stability Regulation.
What about healthy single people?
DorothyB
Posts: 113
Joined: Wed Oct 17, 2012 6:17 pm

Re: Long term Care Insurance

Post by DorothyB »

I'm single and was healthy until this year. I purchased my LTC policy maybe 13 years ago? Due to my father's service, I qualified for the Federal LTC Insurance. I shopped that with an agent after qualifying and purchasing it. The agent at that time said that he couldn't come close to matching the benefits at that cost.
tj
Posts: 3927
Joined: Thu Dec 24, 2009 12:10 am

Re: Long term Care Insurance

Post by tj »

DorothyB wrote: Wed Dec 25, 2019 1:22 pm I'm single and was healthy until this year. I purchased my LTC policy maybe 13 years ago? Due to my father's service, I qualified for the Federal LTC Insurance. I shopped that with an agent after qualifying and purchasing it. The agent at that time said that he couldn't come close to matching the benefits at that cost.


Indeed - I tried to get a quote and they said keep what I have. :beer
WoW2012
Posts: 736
Joined: Sun Dec 23, 2012 11:28 am

Re: Long term Care Insurance

Post by WoW2012 »

tj wrote: Wed Dec 25, 2019 10:33 am
WoW2012 wrote: Tue Dec 24, 2019 10:36 am
nclion wrote: Tue Dec 24, 2019 10:02 am LTC is the one thing that I don't have a good feeling about as I near retirement. I have looked at insurance through work as a Fed, but I just don't like the cost of premiums vs. what you actually get in coverage. I also don't like the horror stories of those who try to collect after years of faithfully paying their premiums. That is why I have decided to just try to self insure even though I know our nest egg may not be enough for one or both of us if we need LTC for an extended period of time.

For healthy married couples, the group long-term care policy with the federal gov't is not the best value. Plus the fed program does not protect assets through any of the state "Long Term Care Partnership Programs" and the fed program is not under the Rate Stability Regulation.
What about healthy single people?
The FLTCIP is very competitive for healthy single females.
It's not competitive for healthy single males.
capjak
Posts: 123
Joined: Fri Sep 22, 2017 8:58 am

Re: Long term Care Insurance

Post by capjak »

My MoM spent 6 years in assisted living and 6 months in nursing home.

I purchased (56/57 year old) One America (Asset Care) a Hybrid policy guaranteed no increase in LTC cost of rider, with an upfront premium plus 10 year pay (probably should have done 20 year pay) for the unlimited payout LTC rider at 3% inflation and 4% accelerator (rider is paid after 25 months of death benefit increase of LTC) $54,000 each person per year benefit todays dollars.

I will likely be able to afford LTC but I wanted something to protect from large event (i.e. LTC at a young age etc...).

Also looked at traditional: (Mutual of Omaha) and traditional with unlimited payout NGL.
Post Reply