Corimo writes:<<I keep reading about long-term care insurance. Does anyone own any or have an opinion about it?>>I asked my mother to look into it recently. She is single and 72, and while I love her, I would prefer not to be responsible for bathing and feeding her if she ever needs that.After speaking with several agents, she decided that the cost of the insurance was simply to high. It would be about $2,500 a year, and would only be available to her for a maximum of two years. If over the course of the next 20 years she never needed it (and her mom lived until 94), she will have spent $50,000 for nothing.Therefore, she adopted an alternative plan. Each year on her birthday, she is going to take that $2,500 and invest it. Assuming an annual average return rate of 11% (the long term S&P average) at the end of 20 years, that money will have grown to $180,663. That amount will most certainly cover my mom for 2 years of care.Of course, if something happens earlier, the whole scenario is moot. But she does have her retirement money if something dreadful occurs.Either way you slice it, it's risky. Every person has to go with the scenario that feels most comfortable.I also recommend reading TMF Pixy's series on the matter:http://www.fool.com/retirement/retireeport/2000/retireeport000214.htmhttp://www.fool.com/retirement/retireeport/2000/retireeport000222.htmhttp://www.fool.com/retirement/retireeport/2000/retireeport000228.htmhttp://www.fool.com/retirement/retireeport/2000/retireeport000306.htmFool on!Barbara Eisner BayerTMF Venus
what about long-term care insurance for those of us who are in our 30's and 40's (for whom the rates would be reasonable)? I've looked into it a bit and at age 33 it would be around $50/month for a medium-high benefit policy. Has anyone <50 yrs. old looked into whether it's worth it or not? (how much would that $50/mo. become if invested Foolishly, starting around age 35 or 40?) I have info from one company that offers the option of having any unused accumulation go to a designated beneficiary if the covered individual dies without needing long-term care (for about $5 more a month). I don't know if this option is widely available though.Christina
Regarding investing the $50 per month or buying long term care insurance: I haven't done the calculations, but you really don't need to; whatever you invest will be all yours, whether you need it for long term care or not. Insurance companies are in business to make money, so they're going to pocket your premiums, and you can guess that the benefits, if used, will be limited. I would look deeply into the part about paying to a beneficiary if the benefits aren't used. How much is the pay out compared to what you'll be paying in (the whole premium, not just the extra $5.00)? Remember, if they can do this, it's because they're investing your money (and collecting fees while they're at it) and as the Fool says, you can invest your own money just as well, if not better than anyone else can.
Corimo writes: <<I keep reading about long-term care insurance. Does anyone own any or have an opinion about it?>> Long Term Care Is Not Just For The Elderly I'm writing this on based on personal experience, at age 39 an accident followed up by severe Crippling Rheumatory Arthritis a year later. It left me unable to even wash my own face, if I had not had insurance all of my investments would have been eaten away long ago. When you put no income in a pot with medication running over $25,000.00 a year, doctors visits test treatments and the DREADED CO-PAYS it won't take long for it to clean your pockets. Than there's the cost of someone taking care of you, what usually happens is a family member takes care of that person. Which means how can they work take care of you and keep their own SANITY EVERYDAY. People are living longer on one hand and becoming disabled or sick at a younger age. Look at "SUPER MAN" NOT. Hang gliding, bungee jumping, skiing, rock climbing, snow boarding, skate boards, dirt bikes, car racing, horse back riding oh yes taking a shower and the list goes on. And once your funds are gone than what, oh sell mom's house for her to go into a home after the proceeds are used up. The older you are the more it cost, so shop around and get started while you're healthy, wealth and still young. Other wise it's the 2,500.00 per year.Just my 2 centsAurora mailto:email@example.com
My mom (age 60) owns it, which is a relief to me. My dad (69) does not, which is a worry.I (31) and hubby (47) don't though through his employer we could buy into a really good plan. I'm eligible for one through my employer that strikes me as all but worthless (limits too low, etc.). I think anyone shopping for these plans better be careful -- avoid low limits, plans without COLAs, etc. Through his, we could pay premiums for the next 10 years then be insured for life, with COLA adjustments, etc. Great if we need care at age 90. But then, I figure, what if the company goes bankrupt. 59 years (for me) is a long time.For now, we just do without.HB
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