Consumer Reports re long-term-care insurance

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nisiprius
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Consumer Reports re long-term-care insurance

Post by nisiprius »

I think this is worth reproducing because it's short, sweet, and sensible; and because it's from a source that does not sell either insurance or investments. Consider it as the baseline rule of thumb.

p. 5 of the August issue.
Q: Is long-term care insurance a waste of money or will it protect my 401(k)?"

A: It depends on whether whether you can afford the coverage and the level of risk you're willing to take. Financial planners have told us that people with a net worth of less than $200,000 to $300,000 (excluding a house and depending on the regional cost of care) could probably not afford a policy and should plan to rely on family or government programs for help. Those with assets of $2 million of more should be able to pay for care. People in between are the most likely candidates for coverage. Consider consulting a fee-only financial advisor for unbiased advice. To find one near you, go to napfa.org
Last edited by nisiprius on Mon Oct 08, 2012 8:28 am, edited 2 times in total.
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Re: Consumer Reports re long-term-care insurance

Post by dickenjb »

This is in line with what I have been told. Net worth less than half a mill - you will end up on Medicaid anyway. Two mill plus - self insure. In between, consider it before you get too old or too sick to be able to buy it!
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Re: Consumer Reports re long-term-care insurance

Post by ResNullius »

This has been CR's position on LTCI for many years. CR also doesn't care much for LTCI even if you're in the gap between too little money and too much money. But it's up to each to decide for their own.
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Re: Consumer Reports re long-term-care insurance

Post by GregLee »

jenny345 wrote:People with high end SS and maybe a pension or two taken as annuities may be able to cover most, if not all of LTC costs out of their regular monthly income streams.
I agree that just looking at portfolio size is way too simple-minded. Personally, my wife and I have nowhere near the millions that, according to CR and Nisiprius, would be necessary to do without LTCi. However, we do have enough SS and pension income to fund over half of nursing home care, so savings can be less. Another reason I think CR's summary advice is not very good is a mismatch between the LTC that people may need to fund and what insurance will pay for. If a nursing home stay is only for 2 or 3 years, savings of considerably less than a million should suffice, so then why buy LTCi with coverage of a maximum of 3 years (as I read that some are doing)?
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Re: Consumer Reports re long-term-care insurance

Post by fidelio »

i have a ltc policy w/ john hancock carried forward into retirement as part of a benefits package. i do pay some premiums, though.

my girlfriend's mother, now 91, had such a policy through a teaching job. she exhausted it and is now on medi-cal. i wonder if it was worth all the fuss .... in other words, she was one of the "under-2 mil. gang" all along, like most of us, so why bother w/ the ins. product?
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Re: Consumer Reports re long-term-care insurance

Post by Puakinekine »

We decided this year to stop our LTC payments. I don't think the pool will be large enough going forward for any of the insurers to survive and we should be able to self insure. I apologize if anyone has posted this article in previous threads, but it brings up what for me is the elephant in the room. After watching my father "dwindle" for ten years in a care facility, I do not want this for myself or my husband.

http://nymag.com/news/features/parent-h ... re-2012-5/
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Re: Consumer Reports re long-term-care insurance

Post by ddunca1944 »

Something to keep in mind is the possibility that one person may need LTC, but have a healthy spouse at home. So they'd need a monthly income stream to pay for the care plus allow the healthy spouse to continue to live at home. Selling the house and liquidating might not make sense in that situation.
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Re: Consumer Reports re long-term-care insurance

Post by BHCadet »

So, if there is a spouse, instead of $2M, isn't the amount needs to be doubled to $4M for self-insure?
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Re: Consumer Reports re long-term-care insurance

Post by 1210sda »

jenny345 wrote:
GregLee wrote:
jenny345 wrote:
I agree that just looking at portfolio size is way too simple-minded. Personally, my wife and I have nowhere near the millions that, according to CR and Nisiprius, would be necessary to do without LTCi. However, we do have enough SS and pension income to fund over half of nursing home care, so savings can be less. Another reason I think CR's summary advice is not very good is a mismatch between the LTC that people may need to fund and what insurance will pay for. If a nursing home stay is only for 2 or 3 years, savings of considerably less than a million should suffice, so then why buy LTCi with coverage of a maximum of 3 years (as I read that some are doing)?
Yes, worst case say both spouses ended up in nursing home care for 20 years and didn't want to use Medicaid. In that case they could sell the house, cash out their portfolio and buy an inflation indexed annuity. They just need enough NW to buy the annuity, so that the private annuity income + combined SS + combined pension income covers inflation adjusted monthly nursing home care in a low cost of living state. And even then there are very low odds of people being in a nursing home for that many years or even if they do, being worse off resorting to Medicaid after years 5 - 10.

For those not buying LTC insurance, I think matching total monthly retirement income streams to cover potential monthly nursing home expenses makes more sense than just looking at NW.
Jenny, I agree with most everything you're saying. My one concern is that inflation adjusted cash-flows (Annuity, SS, Pension) might not be able to keep up with the rising LTC costs. In some cases estimated to be as high as 7% per annum

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Re: Consumer Reports re long-term-care insurance

Post by mickeyd »

Consider consulting a fee-only financial advisor for unbiased advice.
How does fee-only advisor get compensated when he sells you a LTCi policy? I still think that there would be a bias attached to his advice to buy.
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Re: Consumer Reports re long-term-care insurance

Post by yobria »

ResNullius wrote:This has been CR's position on LTCI for many years. CR also doesn't care much for LTCI even if you're in the gap between too little money and too much money. But it's up to each to decide for their own.
Right, nothing new here. Even if you're in "the gap", however, you'll probably do just fine without LTCI - as I've shown on prior threads, only a small percentage of people will require many years of LTC, and those who do will likely be saving money (eg travel) elsewhere. And if worse comes to worse, just rely on Medicaid - you paid for it, after all.
Last edited by yobria on Sat Jul 07, 2012 11:40 pm, edited 1 time in total.
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Re: Consumer Reports re long-term-care insurance

Post by heyyou »

A second world country is my choice of rest home for physical incapacity, perhaps in a country that has respect for elderly people. I think that I can hire someone to send a check there until I run out of money. The recipient may or may not report my death, but by then I won't care.

For dementia, after a while, I won't care where I am. With no direct descendents, I have more choices.
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Re: Consumer Reports re long-term-care insurance

Post by VictoriaF »

Puakinekine wrote:We decided this year to stop our LTC payments. I don't think the pool will be large enough going forward for any of the insurers to survive and we should be able to self insure. I apologize if anyone has posted this article in previous threads, but it brings up what for me is the elephant in the room. After watching my father "dwindle" for ten years in a care facility, I do not want this for myself or my husband.

http://nymag.com/news/features/parent-h ... re-2012-5/
Thank you for the article. I have not seen it before. I very much agree with the article's conclusions.

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Re: Consumer Reports re long-term-care insurance

Post by S&L1940 »

what if Medicaid disappears?

we are in the gap asset wise, and we chose to not carry the insurance
(and now if we could possibly qualify for the insurance, the rates would be a huge burden because of our chronic health issues).

good thing we have caring children :happy
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Re: Consumer Reports re long-term-care insurance

Post by carolinaman »

Home health and related services can care for quite a lot of health conditions, even somewhat severe ones, and allow the patient to remain in their own home. In the past year my 89 year old mother went from living at home by herself to use of home health and eventually for last 4 months of her life at a nursing home. She was legally blind from macular degeneration but functioned quite well until her health rapidly declined a few months before her death. The closest family member was about 3 hours drive from her home. My point is that home health services can allow people to stay at home and avoid LTC in many situations. It may not be as essential as some people seem to think. Also, most people do not live that long in LTC anyway.
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Re: Consumer Reports re long-term-care insurance

Post by Sheepdog »

Puakinekine wrote:We decided this year to stop our LTC payments. I don't think the pool will be large enough going forward for any of the insurers to survive and we should be able to self insure. I apologize if anyone has posted this article in previous threads, but it brings up what for me is the elephant in the room. After watching my father "dwindle" for ten years in a care facility, I do not want this for myself or my husband.

http://nymag.com/news/features/parent-h ... re-2012-5/
Thank you for posting this. At my 79 age, the 90s age is frightening. I want to feel that I will be cognitive and just die in my sleep someday, like my mother did at 92, still living in her lifetime home taking care of herself until 2 days before she passed. Maybe I will still. But I have no control. That is what is frightening.
Jim

Side Note: At age 65 I attempted to get a LTC policy, but was turned down because of one statement in my physician's chart at the time (which never came to pass, by the way. I am very healthy and active.) My point is that if you do want a policy, purchase it while you are healthy can. A physical ailment or even a perceived possible future ailment could prevent you from purchasing it.
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Re: Consumer Reports re long-term-care insurance

Post by ObliviousInvestor »

mickeyd wrote:
Consider consulting a fee-only financial advisor for unbiased advice.
How does fee-only advisor get compensated when he sells you a LTCi policy? I still think that there would be a bias attached to his advice to buy.
It's possible I'm missing something here, but if the advisor really is fee-only, I can't think of how his/her compensation would increase as a result of a client buying a policy. A flat annual fee wouldn't change. An hourly fee wouldn't change. AUM fees would even be decreased relative to the alternative of investing the premiums.

That said, I know many advisors are "fee based" rather than "fee only," meaning that their standard fee is, for example, an AUM fee, then they also accept commissions for selling certain products (e.g., insurance).
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Re: Consumer Reports re long-term-care insurance

Post by ddunca1944 »

For those planning to rely on Medicaid:
1) What if Medicaid is no longer there? Or has been cut back so severely that qualifiations change? Or the lookback period changes from 5 years to 10?

2) Even if one's assets have been spent down (or placed in a trust), there is still a monthly income limit. A small pension combined with SS can easily put you over the monthly income limit.
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Re: Consumer Reports re long-term-care insurance

Post by JamesSFO »

This is also mostly in line with the "Money Ratios" book which has the following advice (shortened):

- Recommends getting inflation adjustment to LTC policy
- Recommends a 6-12 mo waiting period before benefits
- 80% of ppl who need LTC need it for <3 years.
- But he thinks you should focus on diseases like Alzheimers where you might need 5-10 years.
- Believes the biggest risk is longer period, so perhaps get insurance with longer period and shorter benefit.
- Basically starting ~age 55, you should figure out how much you need to self insure for (investments*5%)+SocialSecurity+Pension-80K = <<target annual amt>>. That target is what you should buy a policy for. ** Formula for joint spouses is slightly different, but same principle. Also in case of shortfall for married get half of the shortfall covered with each spouse.

Source: http://www.amazon.com/Your-Money-Ratios ... 0057D9SLC/ - Your Money Ratios: 8 Simple Tools for Financial Security at Every Stage of Life - Charles Farrell
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Re: Consumer Reports re long-term-care insurance

Post by stan1 »

Puakinekine wrote:We decided this year to stop our LTC payments. I don't think the pool will be large enough going forward for any of the insurers to survive and we should be able to self insure. I apologize if anyone has posted this article in previous threads, but it brings up what for me is the elephant in the room. After watching my father "dwindle" for ten years in a care facility, I do not want this for myself or my husband.

http://nymag.com/news/features/parent-h ... re-2012-5/
Another thank you for this. I don't know what should have been done differently to avoid the situation the author and his family are in. Perhaps more doctors could have been consulted until they found one who shared their views -- but it seems like her body was much healthier than her mind and was able to recover on multiple occasions without a lot of medical intervention.

My stories:

In 1984 my grandmother (who had Alzheimers and had been living in an Alzheimers board and care facility for 18 months) passed away from pneumonia. She owned a house in a Southern California beach community, and renting the house paid most of her care costs. The doctors could have treated the pneumonia, but the family asked them to provide palliative care instead and that's what happened. Pneumonia vaccines take away an easy option for palliative care.

My father's diaphragm was damaged during a liver transplant surgery in 1998, and he was never successfully weaned from assisted breathing. Some of the attempts to wean him from the ventilator likely caused brain damage. After 15 months it was clear he was getting progressively worse, the family decided there was nothing more to be done, and fortunately my step-mother found a doctor who agreed to take him off the ventilator. Fortunately his health insurance paid for his end of life care since there never was a recovery from the transplant surgery.

In both cases it took a strong-willed female family member serving as the patient's advocate and a physician whose ultimate concern was the patient's quality of life. Both of these situations could have been drawn out much longer. There needs to be a better way than keeping a handgun in the nightstand.
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Re: Consumer Reports re long-term-care insurance

Post by ddunca1944 »

Puakinekine wrote:
We decided this year to stop our LTC payments. I don't think the pool will be large enough going forward for any of the insurers to survive and we should be able to self insure. I apologize if anyone has posted this article in previous threads, but it brings up what for me is the elephant in the room. After watching my father "dwindle" for ten years in a care facility, I do not want this for myself or my husband.

http://nymag.com/news/features/parent-h ... re-2012-5/
I read that story in its entirety. I also read all of the comments on it. I had two responses:

1) The author seems to be saying he did not buy LTCi because he's going to work out a do it yourself exit strategy (he doesn't say exactly what it is). There are a couple of problems with planning to "do it yourself". It's much, much more difficult to actually do. If you have a stroke in your sleep in the middle of the night, you've lost all control. If you slip into dementia you may forget where the location of the pills you hid, or you may not even realize you have a problem (my mother was in denial about her memory issues until she forgot who everyone was). So, the author may well be sentencing his kids to make the decisions and bear the costs.

2) The author is frustrated with the doctors and other healthcare professionals - understandably. But it was HE, with his sister who consented to heart surgery for an 84 year old woman with dementia (over the objections of his brother and the woman herself). Surely he and his sister bear the brunt of responsibility for her long decline. My sister and I are in agreement that mom will have no surgery, no invasive procedures, nothing other than comfort care should she be diagnosed with a physical problem.

3) Everyone should have the conversation with their immediate family (and follow up with an advance directive). My family has been told in no uncertain terms that if I am ever diagnosed with dementia I want nothing that will prolong my life: no surgery, no antibiotics, no insulin. nothing. If I develop dementia, my life will effectively be over and I don't want it physically prolonged.

4) Although the author admits that his mother is able to stay in a comfortable room with 24x7 personal care due to the LTCi she had combined with family contributions, he seems to blame LTCi for her lingering in the twylight. All LTCi does is make that lingering more comfortable. It did not create her problem. The author and his sister created the situation.
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Re: Consumer Reports re long-term-care insurance

Post by Puakinekine »

ddunca1944 wrote:
Puakinekine wrote:
We decided this year to stop our LTC payments. I don't think the pool will be large enough going forward for any of the insurers to survive and we should be able to self insure. I apologize if anyone has posted this article in previous threads, but it brings up what for me is the elephant in the room. After watching my father "dwindle" for ten years in a care facility, I do not want this for myself or my husband.

http://nymag.com/news/features/parent-h ... re-2012-5/
I read that story in its entirety. I also read all of the comments on it. I had two responses:

1) The author seems to be saying he did not buy LTCi because he's going to work out a do it yourself exit strategy (he doesn't say exactly what it is). There are a couple of problems with planning to "do it yourself". It's much, much more difficult to actually do. If you have a stroke in your sleep in the middle of the night, you've lost all control. If you slip into dementia you may forget where the location of the pills you hid, or you may not even realize you have a problem (my mother was in denial about her memory issues until she forgot who everyone was). So, the author may well be sentencing his kids to make the decisions and bear the costs.

2) The author is frustrated with the doctors and other healthcare professionals - understandably. But it was HE, with his sister who consented to heart surgery for an 84 year old woman with dementia (over the objections of his brother and the woman herself). Surely he and his sister bear the brunt of responsibility for her long decline. My sister and I are in agreement that mom will have no surgery, no invasive procedures, nothing other than comfort care should she be diagnosed with a physical problem.

3) Everyone should have the conversation with their immediate family (and follow up with an advance directive). My family has been told in no uncertain terms that if I am ever diagnosed with dementia I want nothing that will prolong my life: no surgery, no antibiotics, no insulin. nothing. If I develop dementia, my life will effectively be over and I don't want it physically prolonged.

4) Although the author admits that his mother is able to stay in a comfortable room with 24x7 personal care due to the LTCi she had combined with family contributions, he seems to blame LTCi for her lingering in the twylight. All LTCi does is make that lingering more comfortable. It did not create her problem. The author and his sister created the situation.
I did not look at what the author wrote in quite as black and white terms. I think the author very much knows and lives with the fact that he and his sister made the wrong decision. He writes with a tremendous amount of pain and grief and imperfect humanity. The author and his siblings had never done this before. They were in an extremely agitated, vulnerable, emotional state when making decisions, while receiving calm advice from professionals. I don’t know if you have been there with a parent or family member, but I think without knowing how badly things can go, it is very easy to let the professionals decide. They seem to know what they are doing, while you are out of your depth on all levels. We are programmed for optimism and certainly the medical system encourages this. Western medicine is designed to keep people alive. It is how people are trained. We are now discovering that at the end of life, this may not be such a good thing.

Yes, the author approved the surgery, and the article itself is in part a confession and in part a cry for a better way. What he says in conclusion is that “Anyway, after due consideration, I decided on my own that I plainly would never want what LTC insurance buys, and, too, that this would be a bad deal.” I read that slightly differently then you, not as an indictment of LTC insurance per se, but the system of horror that partially enabled the misery he, his mother and his siblings endured. The money allowed it to happen, but he does not spell out what would have happened without it.

I too, was less then satisfied with the author’s plans for his future. But, if the author has plans to kill himself, or ask his wife to assist him, which in part seems to be the only way out of this situation, of course he can’t say that in the article. When I get to thinking about my plans, I can’t even say this to myself. I don’t know if I will have the courage. His children don’t seem to be able yet to face the conversation at all. I hope they read their father’s article.

Most of us dread the idea of being a financial or emotional burden to our children. I commend you for making your desires perfectly clear. But you can end up in a helpless state even without unusual medical interventions. That is what happened to my father. What then?
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Re: Consumer Reports re long-term-care insurance

Post by ddunca1944 »

Puakinekine
You make some valid points. I did come across as harsh towards the author. I realize he was writing from a place of anguish and that part of his pain was the recognition that his mother's current state was a result of the decision made by him and his sister (over the objections of his mother and brother)
But you can end up in a helpless state even without unusual medical interventions. That is what happened to my father. What then?
A good question. All I could hope for would be that my family follow the instructions in my advance directive.
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Re: Consumer Reports re long-term-care insurance

Post by stan1 »

ddunca1944 wrote:Puakinekine
You make some valid points. I did come across as harsh towards the author. I realize he was writing from a place of anguish and that part of his pain was the recognition that his mother's current state was a result of the decision made by him and his sister (over the objections of his mother and brother)
But you can end up in a helpless state even without unusual medical interventions. That is what happened to my father. What then?
A good question. All I could hope for would be that my family follow the instructions in my advance directive.
After observing what my aunt and my mother went through with my grandmother, what my step-mother went through with my father, and now starting to face health problems with my mother -- my experience is that its not always as straight forward as following instructions. Denying life-saving care to a patient with minor dementia is not an easy decision, and the family might have to look long and hard for a doctor/hospital who is willing to go along with that decision if they follow your instructions to the letter. I hope your situation is as straight forward as you envision it will be for you and your family members.
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Re: Consumer Reports re long-term-care insurance

Post by ddunca1944 »

What is "minor dementia"? I'm talking about full blown, permanent dementia - Alzheimer's or otherwise. Not a temporary condition that might be a drug side effect.

And I'm pretty sure that someone with a health care proxy can refuse to sign for surgery or chemo or other procedure. They might have to deal with disapproval, but I cannot imagine a hospital performing surgery or other invasive procedure without the signature of the person with the health care proxy.
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Re: Consumer Reports re long-term-care insurance

Post by Mudpuppy »

I see a lot of concern about mental incapacity as one ages. There is also the flip side: fine mental capacity but diminished physical capacity. Having the ability to pay for in-home care when you are mentally fit but perhaps not physically able to care for the home and yourself as you used to is also something one should plan for. A nursing home is a dire place to be when you're fully aware of your surroundings but not physically able to do much about it. And yet, a nursing home is what many government provided programs will pay for if you have a physical ailment that prevents you from living independently. LTCI on the other hand will provide for in-home care, as long as you don't need more intensive care that would be better met by a nursing home or assisted living facility.
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Re: Consumer Reports re long-term-care insurance

Post by GregLee »

ddunca1944 wrote:What is "minor dementia"? I'm talking about full blown, permanent dementia - Alzheimer's or otherwise.
Minor dementia might be something like the "early stage Alzheimer's" that my mother was diagnosed with, a few months before her death. She also came to experience bad mental reactions to morphine, so a drug reaction couldn't be excluded, to explain her deteriorating cognition. You speak with such surety, while in the event, ambiguity and uncertainty are typical. How will you know whether a dementia is permanent?
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Re: Consumer Reports re long-term-care insurance

Post by dhodson »

Mudpuppy wrote:I see a lot of concern about mental incapacity as one ages. There is also the flip side: fine mental capacity but diminished physical capacity. Having the ability to pay for in-home care when you are mentally fit but perhaps not physically able to care for the home and yourself as you used to is also something one should plan for. A nursing home is a dire place to be when you're fully aware of your surroundings but not physically able to do much about it. And yet, a nursing home is what many government provided programs will pay for if you have a physical ailment that prevents you from living independently. LTCI on the other hand will provide for in-home care, as long as you don't need more intensive care that would be better met by a nursing home or assisted living facility.
actually cash pays for that. you may get cash from the insurance company or from your bank account or from other sources but cash pays for these things. The question becomes is this the best way to get cash or insure against the risk of needing cash up to the limits of the policy. For me the answer is No.
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Re: Consumer Reports re long-term-care insurance

Post by ddunca1944 »

You speak with such surety, while in the event, ambiguity and uncertainty are typical. How will you know whether a dementia is permanent
The only thing I am sure about is my own desire for myself and how I want to be treated. As far as whether a dementia is permanent, I do know that Alzheimers is permanent. For dementia of another type, I'd expect my husband (or holder of a health care poa) to rely on a diagnosis.

Calling early stage Alzheimers "mild dementia" is a bit like saying "a little pregnant".... :?
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Re: Consumer Reports re long-term-care insurance

Post by ddunca1944 »

Mudpuppy wrote:I see a lot of concern about mental incapacity as one ages. There is also the flip side: fine mental capacity but diminished physical capacity. Having the ability to pay for in-home care when you are mentally fit but perhaps not physically able to care for the home and yourself as you used to is also something one should plan for. A nursing home is a dire place to be when you're fully aware of your surroundings but not physically able to do much about it. And yet, a nursing home is what many government provided programs will pay for if you have a physical ailment that prevents you from living independently. LTCI on the other hand will provide for in-home care, as long as you don't need more intensive care that would be better met by a nursing home or assisted living facility.
If a person has their mental acumen, and the financial resources (including LTCi), yes, they can pay for in home assistance which a lot of us would prefer to nursing home care.
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Re: Consumer Reports re long-term-care insurance

Post by GregLee »

ddunca1944 wrote:As far as whether a dementia is permanent, I do know that Alzheimers is permanent.
The last I heard, Alzheimer's could only be diagnosed with certainty by autopsy. So after you're dead, you can find out for sure that you're not going to get better.
Greg, retired 8/10.
ddunca1944
Posts: 940
Joined: Fri Apr 01, 2011 1:49 pm

Re: Consumer Reports re long-term-care insurance

Post by ddunca1944 »

GregLee wrote:
ddunca1944 wrote:As far as whether a dementia is permanent, I do know that Alzheimers is permanent.
The last I heard, Alzheimer's could only be diagnosed with certainty by autopsy. So after you're dead, you can find out for sure that you're not going to get better.
They can pretty much diagnosis Alzheimers prior to death. I did want to add that I am sorry for your loss, but be grateful that you did not have to experience watching your mother's Alzheimers develop. It is a cruel process. especially for the family.
Needtoknow
Posts: 126
Joined: Sun Apr 01, 2012 11:19 am

Re: Consumer Reports re long-term-care insurance

Post by Needtoknow »

If you just look at LTC as just insurance and what insurance does which is to cover the risk of something and in this case need for long term care that is very expensive and is not covered by regular health care insurance, then if it is not a financial burden, you would purchase it.

I bought a policy that will protect my assets for my family and in particular my wife. Now I can afford the policy and I have taken into consideration if it increases 100% over time. I am okay with that because IF for some reason I have to use it for any extended amount of time, I will recoup the costs of the policy pretty quickly.

As people have pointed out you can leave your spouse in a bind if you are not prepared for such an incident. We never know if and when we might need it. I had a friend of mine who had a stroke at 45. This happened out of the blue. She cannot speak. She has had to have someone with her in her home every day for the last 4 years. She had LTC with lifetime benefits. I can tell you she has greatly benefitted from it. My dad has been in and out of the hospital since he learned of his cancer. He did not have long term care and his bills have been ridiculous because he is in NY and will have to sell his house to get Medicaid for his care.

I bought a policy for me and my wife to protect our assets. I am not rich so I cannot self insure, but I am not poor so I may not get to Medicaid. I still bought a partnership LTCi policy just in case to protect my assets in case I should need to do so. My dad has dementia, if I were to develop it and needed extended care over a long period of time, I could easily wipe out my assets. With the partnership program, I could protect it with my plan. Thus, protecting my family.
CA is a community property state so if I needed Medicaid for some reason they government would look into our finances 5 years. I figure the benefits I have in place should at the very least protect my wife and me. We each have about $300,000 in benefits and I am in my early 50's and she in her late 30's. I can afford so like my home insurance which I have never made a claim on, my car insurance in which I have made one claim on, my umbrella insurance which I have never used and my health insurance which I rarely use, I just pay to avoid financial ruin or serious setback.
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