Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Hello, Jen!

At what age should a person start a LTC plan? I've always heard mid 50's, around 55 y/o.

Here's the Fool's LTC information link:

As usual, the information is mostly focused on the financial and retirement scenarios of couples (frustrated long-winded sigh).

If you are a single independent (one income), like me, here are some key point excerpts from the link that I believe makes sense when deciding on buying LTC insurance:

*Inflation protection (5% compounded) is expensive but almost always worth it.

*Look at how many activities of daily living (ADLs) the policy recognizes and how many you need help with to qualify for benefits.

*Make sure that the policy covers in-home care and assisted living facilities.

*Nobody is guaranteeing premiums yet (they could be raised across the board in the future), so be sure you could handle a 30% increase.

TMF's David Braze article, The Issue of Long Term Care Insurance
( includes information about how to decide if LTC is a cost-effective expense:

The United Seniors Health Council, a nonprofit consumer organization devoted to the issues of the elderly, maintains that long-term care insurance is appropriate provided it costs no more than 7 percent of your retired income and:

1. You have $75,000 or more per person in assets, excluding a home and a car.
2. You have a retirement income of at least $35,000 per person per year.
3. You can pay the premium without adversely affecting your lifestyle.
4. You could absorb up to a 30% increase in future premiums if necessary.

The article also included some sobering and disappointing references about hoped-for benefits of past LTC policy holders:

"...until recently the industry has had a sorry record on benefit payments". In his book "Beat the Nursing Home Trap -- A Consumer's Guide to Assisted Living and Long-Term Care," author Joseph Matthews notes that for the decade ending in the mid-1990s:

1. About 50% of all policies lapsed before benefits were paid.
2. About half of policyholders who entered a nursing home never collected a dollar.
3. When benefits were paid, they were far below actual cost.

Yes, things have improved since then, but caution is still in order.

Ooooooooooooooouuuwccchhhhhh (and a hiccup)!

Planning and investing for, ever hopefully, a respectable retirement portfolio on one income is fast becoming a crap shoot! I don't wanna still be on someone's payroll at 65 or 70 plus, unless I get a notion and feel like it!

Arrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrgh!!! The older I get, the closer I come to retirement age, and the more senior age living challenges I realize I will have to deal with, the tougher it seems to be to prepare for and save up enough Go-To-%#__-Money!

At least I've got somewhere to go (TMF) to get some solid reliable answers!

Mary (who's a lifetime teetotaler, but wouldn't mind a stiff shot about right now!)
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.