No. of Recommendations: 6
IMO, LTC has gotten much better over the last decade; especially with many states now offering partnership coverage. More on that later.

LTC policies come in so many different formats that it can be really easy to tailor one to match your needs - even including return of premium. Many have inflation protection built in. Many will also cover in home care for those families that do not want to be forced to commit their loved ones to a facility.

Regarding partniship coverage - many states are now subsidizing LTC policies by allowing you to shelter some or all of your assets from Medicaid spend-down. The policies do not cost anything more - it is just a way for the state to encourage you to have some coverage in the hope that you never have to use medicaid. If you do, then you could protect hundreds of thousands up to millions from the requirement of spending them down before qualifying for medicaid. This provision can really go a long way to insuring the other spouse is protected...

And these, IMO, are really about protecting the other spouse more than anything else. Sure, they can also protect assets for heirs but life insurance does that better - and if you qualify for one, you likely can qualify for the other.

A new client I have (female) has an existing LTC policy bought years ago but her husband didn't get one at that time. His care now costs her $9000 a month and it is quickly burning through their life savings. They used to have about $500k. They are now down to about $300K. This horrible situation puts the wife in a position she never wished to be - where she would be better off if he died sooner rather than later.

I worked in this industry nearly a decade ago so obviously things have changed but the addition of partnership coverage is a very welcome addition.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.