Any retirees have any thoughts on purchasing insurance to pay for nursing home care in ones later years ?After receiving info from Medicare for regular health insurance, I sent for long term insurance info from AARP.Most of us know the insurance is for custodial care dealing with dressing, bathing, eating, etc. There are six daily living activities -- to qualify for benefits you must need help (be unable to perform) any two.AARP's insurer (Metlife) has three plans: Basic, Choice and Select. Premiums increase with each step up.At 64 my costs would be (depending on which plan I might choose) $35.16, $93.94 or $119.68 per month.The lowest cost plan excludes care in the home, the others provide for care in the home. As the premiums increase, the maximum dollar payable increases from $87000.00 to $160000.00 to "no limit".If I wait until I am 69 to select a plan, the costs go up by $22.08, $53.24 or $65.56 per month.Statistically, the info from the NAIC says of those who live to age 65, 1 in 3 will spend 3 months in a nursing home.Only one in four will spend 1 year or more in a home.In other words, 2 out of 3 people who turned 65 in 1990, will either never spend any time in a nursing home or will spend less than 3 months in one.(This is a direct copy of the info I received from the NatlAssn of Insurance Commissioners (NAIC). I guess you have to make an assessment of your health, income and objectives for retirement. Life is a gamble but we have family health histories, statistics and our own little signals to go by.The obvious alternative to insurance is to develop an investment plan of some type that fits your individual needs. I do not think we should forget the insurers develop plans to make money as well as to provide protection.H.
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