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|Subject: Re: Big Problems wth LongTermCare Insurance||Date: 7/11/2013 1:42 PM|
|Author: BruceCM||Number: 72561 of 81359|
When you hear that long term care costs $50,000 a year, or whatever it costs in your area, you need to compare that to what a healthy person that age would spend in a normal year since many of their other expenses will stop when they go into long term care.
The insurance industry does not want you thinking that way. The numbers provided in their marketing "white papers" will carefully pick the highest cost areas. They never reflect the price you can shop for in less costly areas and without all of the expensive bells and whistles. And I've NEVER seen an insurance-sponsored study on the cost of LTC that subtracts out the monthly expenses the elderperson will no longer have.
I helped the family of a client a few years ago with household finances in the transition from a small single family home in a modest but well kept neighborhood in Northeast Portland, to a very nice assisted living facility in Vancouver. When I did the calcs, she was actually paying less per month in the ALF than she was in her own home, when all relevant expenses were taken into account.
And to those who, like their homeowners and auto casualty insurance, hope they never have to use their LTC policy....do you also hope to never use your dental insurance policy? Today's LTCI is not about insurance....its about a form of cost sharing. I haven't looked at all of them, but most of the major insurers are getting out of the true insurance part of LTC by either capping annual benefits or capping payout periods...again like dental insurance. And LTCi does not translate well to other forms of personal property and casualty insurance, as these go year to year with full portability between carriers. IOW, for my auto liability coverage, I'm not making mandatory annual premium payments to an insurer who I'm locked-in to, for automobile liability claims that have a high probability of happening in 20 to 30 years.
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