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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 74759  
Subject: Re: Big Problems wth LongTermCare Insurance Date: 7/11/2013 9:00 AM
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Well my take on this subject is a bit different. While nobody wants to pay too much for anything, people whose purchase decisions are dominated by price are often disappointed. We have been dealing with a single LTC company for over 20 years and had none of the horror stories Intercst and the media report. That company was originally GE Financial which was spun off and now is known as Genworth Financial.

I'm with you, and we have our LTC policy with Genworth as well.

Insurance is something you buy hoping that you never need it, and that doesn't matter if it is LTC and I hope that I never need a nursing home, or auto insurance and I hope I never get in an accident, or homeowner's insurance and I hope the house doesn't burn down (have some friends currently dealing with that one and having the insurance company pay to build the new house).

I read the linked article, and although the percentage increase is high, I didn't think the actual premiums were awful. The premium rose to $6400 per year, but even if you pay that for 10 years, that's $64,000 and just barely enough to cover one year of nursing home care if you opted to not pay the insurance. As someone who is now dealing with 2 estates where each of the deceased people had spent their final years in a nursing home, I can see how expensive that is as Medicaid is now owed just under $500k for both of them.

I see the arguments for how long $1 million will last if you have to pay for your own nursing home care, but what about if there is a spouse? I don't want to leave DH destitute because we had to use all our assets to pay for my LTC, and that is why I have LTC insurance.

As has been mentioned, very poor people cannot afford LTC, but they don't need it because there are no assets to protect and Medicaid will provide the nursing home care. Very rich people have plenty of assets and so don't need LTC because they can afford to pay for their own care and have their spouse be able to live after they are gone. It is mostly those of us in the middle who have just enough for our retirement that need to protect assets so that the surviving spouse has enough to live on after the first spouse passes if that first spouse needs nursing home care.

My stepmother's first husband had Alzheimer's which he got at a very young age, and so he spent years in a nursing home before he died. That left her with nothing and just her social security to survive on. That is not a position I with to leave either DH or me in once the first of us passes, and for that, I have decided to get LTC.

As with all things, YMMV, and there is no one-size-fits-all, so you have to look at your own situation, understand your own goals and risk tolerance, and plan accordingly. We've done that, and I am happy with the plan we have put into place.
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