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Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75794  
Subject: Re: Long Term Care Date: 3/29/2011 2:30 PM
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If I don't pay my homeowners insurance or car insurance they cancel the policy. If 6 months later I restart the policy, no problem---the cost is the same. Moreover, I don't have to pay any additional money for the time I was not covered.

If I don't pay my LTCC premium they somehow cancel the policy, yes? But what happens 6 months later when I want to restart the policy. Do they say "Sure. But now your are 58 instead of 48 when you took out the previous policy. So your new premium is significantly higher. Oh, and by the way you have to take a medical test to prove that you are in good health."?


I think a better comparison would be what happens if I don't pay the premium on my life insurance policy? I have term life insurance, and if I don't pay the premium, then the policy lapses. If I want to restart it, then I'm pretty sure that I have to reapply, take another physical, and will see rates in line with my current age and health. I would expect that I'd be getting a new policy, and not that the old one would be reinstated.

It would really suck to pay $4000/yr for 15-20 years and then get laid off and lose your LTHC policy that you had been counting on.

I suppose, but I've already planned for this in my case, and I don't consider this to be an issue.

I can't see how someone would be so cavalier as to not get this nailed down before committing to a policy.

I don't consider this being cavalier. I already responded earlier that I have the resources to keep this policy in place, so this particular issue wasn't of importance to me. Since it is of importance to you, it is a question you should ask if you ever consider LTC insurance, but I was under the impression that you had already dismissed it.

For me, I'm happy with the policy and with the provisions that it has, and I'm sure that it has different provisions than what someone else would want. I've opted for things like a 90 day elimination period and unlimited days covered to allow for an Alzheimers stay. These are all things that will drive the cost of the policy up, but again, those are my choices and may not be the same as someone else would make.

I've watched several relatives have to go to a nursing home, with some stays under a year, but most over several years, so I'd like to be prepared to do that and to provide for the remaining spouse.

If you have other plans in place to handle this, that is fine for you. For me, it is something I choose to insure for, and I am not unhappy that I have done so.
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