Do any of you retired or soon-to-be retired Fools carry long-term care insurance? Have you considered it? If so, what are the costs?
Do any of you retired or soon-to-be retired Fools carry long-term care insurance? Have you considered it? If so, what are the costs? I am 55 and not fully retired as yet. At age 54, I applied to MetLife through AARP for long-term care insurance and have been accepted. You may access information relative to this coverage through www.aarp.org site, click Insurance and go from there. The site will compute your premiums for you after you enter the coverage you require. Personally, I only wanted nursing home/assisted care, lifetime coverage with no inflation protection at this point. Since I own a condo in SC, which I will use as rental property when I move to FL, and I own a single-family residence in FL, I feel that my income from the real estate, along with investment income and SS, will be more than enough after adding $3,300.00 coverage from the long-term care insurance. Since I have no children, I would rather be in an assisted care facility rather than being at home. At age 54, my premiums are something like $34.52 per month if I have my checking account debited (you save $2 per month).Good luck,Donna
I purchased LT Care insurance from AARP. After a long look at all the others I just became more and more confused. I don't expect the insurance to cover all the expense. I'm planning to pay quite a bit myself. But the insurance will sure help. Oh yes, be careful of the insurance salesmen, they can make the care picture look so dark you want to throw up your hands and say "To hell with It all".
I reviewed several policys and selected Penn Treaty over AARP, GE, and AOPA group plan. They beat the pants off of the rest. You sure need to develop a spreadsheet in order to compare them. The fact is they are in the game to make money so a comparison by items offered is necessary and it will turn up questions to ask the next salesman. This is one place where shopping around pays off. Be sure to do it by age 60 as the premimum really goes up after that. I waited until 60 and it would have been a lots less had I signed up by age 59 as proved out by the cost for my wife who is 59. My cost is around $1400/yr with inflation protection.John
I think long term care insurance is a waste of your money. When you can't take care of yourself anymore and you need assisted care, what kind of QUALITY life will you enjoy. You are dependent on others, who may not be soo nice. Why suffer. Regular insurance carries a 2 to 3 month long term care per year.
GerdavTo each his own, In my case the policy I have does not cover this and for sure Medicare doesn't go beyond 30 days. I have no desire to be a burden on my family physically or finacially. I have lived in Florida since 1963 and the real life cases I have observed thru our church and in our neighborhood over the years has convinced me of the need. FYI and consideration.John
Can't disagree with any points previous responders have made. My wife and I have looked at this very carefully in the last couple of years. My father inlaw is in a nursing home and will never be able to leave. We have a close friend who had a stroke. In general I would suggest the following points to keep in mind:1) There are some situations where having the insurance does not make any economic sense. The areas were it does make sense are for people whose total net worth is somewhere in the hundreds of thousands of dollars.At some point of wealth, the income from your assets can pay for nursing home care. That point depends on your age(it is nice but not required to leave an estate) and the cost of care in your part of the country.People who do not have much money really can't afford adequate insurance. So when the insurance runs out, they (and their spouse) essentially loose it all and Medicade picks up the bill.2) The vast majority of people will never use (or be eligible to use) their coverage(s). Only a fraction of people get into nursing homes. Over 75% of people going into nursing homes leave in less then 120 days – Medicare pays most of the first 120 days of coverage. After 120 Medicare pays zero.3) If you feel you want/need coverage, get presentations from at least 3 or 4 different companies. The coverage and qualification differences are great. You can't know what is important to you, if you don't know what is available.Examples: Some plans cover home health care. Some cover home health care for only the number of days you have been in a hospital. Some have inflation coverage. Some cover physical/occupational/speech therapies. Some pay only bills. Some pay cash so you can use the cash to pay a utility bill for example.This is insurance and my experience with insurance is quite simple. When I need it, I need it and wish I had more; however I rarely need it and when all is said and done I have paid a lot more in premiums they I have ever gotten back. (counting all my insurances auto, home, life, health, etc.) One thing is “different” for me about long term care insurance. I really won't have the option of getting a job to pay off debts. I could loose it all under worst case conditions. So what have I done – I have decided I am going to die someday and I would rather enjoy my money then enrich the owners of an insurance company in the mean time. Hope that was the right choice.
Consumer Reports October 1997 issue had a special report about LT Care.What to expect from Medicaid?Do you need insurance?How to judge a policyHow agents spin the coverageRatings of 114 policiesYou can order reprints of this report for $3. Says to write CU/Reprints, 101 Truman Ave., Yonkers, NY 10703-1057. I haven't checked but by now they might have a way to order reprints from a website.Ken
I have AARP LT care ins. I know it's not going to cover everything so I'm prepared to pay a good portion of the cost out of my own pocket. After putting the two togather I think I should be able to get a pretty nice "retirement home", not some fleabag nursing home.I purchased the insurance because I don't want to take the chance of becoming very ill for a long time, at a big expense, and leaving my wife with very little to live on.I would much rather pay a good size premium than have to worry about my wife's future.
I have lived in Florida since 1963 and the real life cases I have observed thru our church and in our neighborhood over the years has convinced me of the need. I agree. I will be moving to Florida in about 5 years when I am 60. My mother has a friend there who was admitted into a wonderful assisted care facility in Dade City (near Tampa), which costs $1,500.00 per month, in addition to her $500.00 per month social security which is paid directly to the facility at this point. She is a vibrant, energetic person, but suffers from heart problems and cannot live alone. Her niece and nephew, who are her guardians, had to sell her home so she could move in. As it is now, she will be out of money in a year and will have no choice than to move to a nursing home with Medicaid funds. I swore this would not happen to me. I intend to enjoy my life as long as possible. If the good Lord decides that I am physically incapable of living alone and I am still capable of walking be it with my legs, walker or wheel chair, and I can read good books, and write on the Internet, I will thoroughly enjoy my life in an assisted care facility. However, I will have to have a mini-kitchen as my mother's friend has....to fix my coffee in the mornings and have my fresh tomato sandwiches when I want them.Just a thought,Donna
I purchased the insurance because I don't want to take the chance of becoming very ill for a long time, at a big expense, and leaving my wife with very little to live on.I would much rather pay a good size premium than have to worry about my wife's future. Your wife is very lucky. May you never have to use the insurance, but at least you are well-prepared.Best wishes,Donna
Donna,You might want to rethink the idea of foregoing inflation protection. You don't tell much about your investment income, but you should be prepared for costs to double in 15 years. Considering that you are 55, and you probably won't need LTC until your 80's, the expected increase is well more that a 3-fold increase. The other point is that you may spend down some of that investment prinicipal after retirement, thus reducing your future investment returns and income from which you are planning to pay for LTC. Unless you have enough $$ that this is not a risk, why stockpile money for LTC when it might constrain your spending plans while you are healthy and active. Generally, the AARP program is one of the most expensive in the marketplace. I am a Fin Planner who specializes in knowing the LTC market and the feedback I get from seniors and the numbers I have seen show that most people are better off avoiding AARP. You should get some other quotes in South Carolina. You can probably save some money. E-Mail me if you want to get more info. I am an independent broker of LTC insurance licensed in SC, though I do most of my business in GA.
AARP does business through METLIFE, AARP does not know who they want to do business with due to the fact they jumped horse a few years ago from Hancock. They are business to make money too, the larger the kickback from the insurer will dictate who they will go with.
Advise compound 5% starting at $120 day....do a ten pay so she can pay off in 10 years which should be close to retirement if she is working. Total cost for the ten year should be $28k for lifetime care, comprehensive. Go non-tq take advantage of the 7 adl's with a conversion at 65 to tq when the gov't frees up the tax bene just in case she has an accident or some type of joint problem she can claim immediately, go 30 day elim keep prem. down
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