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Subject:  Re: Avoid Long Term Care Insurance Date:  1/21/2004  12:38 PM
Author:  TTRoberts Number:  38668 of 79997

Nick (a.k.a. yobria) quotes Consumer Reports:

<< ”A CR investigation, for which we reviewed 47 policies, reveals that for most people, long-term-care insurance is too risky and too expensive. As with health insurance, you must keep paying to keep it in force. If premiums rise, you may have to drop the coverage, possibly losing everything that you've paid.” >>

I feel this is most probably true . . . . since “most people” tend to live and retire at a poverty level and depend mostly on government entitlements.

<< ” The policy's benefits may cover only a portion of the total expense. Many policies are packed with catches that can keep you from collecting. Finally, there's no guarantee that long-term-care insurers, some of which have weak balance sheets, will be around 20, 30, or 40 years from now “ >>

I find the use of “packed with catches” as very revealing about the author's view. All insurances have “catches.” And the way this is phrased, “keep you from collecting” implies some form of treachery. Any insurance contract has to set limits as to what it will or will not cover, otherwise no insurance company would be able to stay in business. If one doesn't like the limits set with a contract, then find a contract that's acceptable. But don't expect an insurance company to do things outside of what the contract obligates it to do.

And I would agree that there's no guarantee that any long-term-carrier will be around indefinitely. This is true for any business. However, for insurance such as this, the contracts like this simply tend to migrate to another company and sometimes do so with some changes in pricing and some coverage's.

2old4bs, writes:

<< I was almost ready to take the step of buying a LTC policy, when someone pointed me to this CR article, so I didn't. I also spoke with a friend of mine who is a financial advisor, and she pointed out that if you have big bucks put aside for retirement (i.e. >