Lethe200
Senior Member
- Location
- San Francisco Bay Area
>>In many plans you have to meet 2 or 3 benefit triggers over a two or three month waiting period.>>
In ALL LTCi plans, except for very very old policies (issued pre-1997; and even then many older policies were later modified to conform) issued prior to the IRS ruling for tax-advantaged LTCi, carriers conform to the same disability guidelines as Medicare: an inability to perform at least two ADLs.
Many people have homeowners insurance, but seldom make a claim. Does that render it a waste of money?
LTCi's greatest positive is the tax-free payment if Skilled Care Nursing OR Memory Care is needed.
There are, by some counts, up to 75 different types of dementia. Some are correctable (nutrition-based, for example). Most are not. Some types show a very fast physical/mental decline. Others can take a decade or more. We personally know three seniors who are or have struggled with dementia. One has declined drastically within 2 years. The other two lived for more than 10 years.
In 25 yrs of holding an LTCi policy, I have paid approx $63K in premiums. Remember, that is over a two-decade+ time period. We have no "cap" on benefits; they are paid until death. We also have an inflation rider that has increased our benefits to the point where the policy covers the market cost.
Current Memory Care in our area - my Spouse is at extremely high risk of dementia due to a stroke at age 50 - is between $10-18K per month.
If there is anyone on this board who could turn $63K into $180K per year for an unlimited period (assume average cost $15K/mo for facility), I not only salute you, I might even turn over our investment portfolio to you! This is not, btw, even taking into account that healthcare costs are rising faster than inflation (which has been true for over 50 yrs, I believe) and that facilities raise their prices annually.
LTCi plans are now extremely expensive - they were NOT when we started our policies - and difficult to obtain. I no longer suggest people get them, simply because most people either cannot quality due to health reasons, or just cannot afford them.
Lon's situation was not optimal for LTCi benefits. These are policies designed as a "backstop"; they will not cover all aspects of Assisted Living as they were originally viewed as facility-only care. Newer (post-2000) plans generally include home healthcare benefits, but those are strictly regulated; policyholders should never assume that everything needed for "staying at home forever" is included (and probably is not).
As our LTCi policies were sponsored by the state pension plan, benefit claims are managed by a third-party company. As soon as a claim is made, a care manager is assigned to that claim and is the insured's point of contact. At no time is there any need to negotiate directly with the insurance carrier; the care manager handles it all. This gives us a "comfort cushion" that buying an individual LTCi policy doesn't have - another reason why I don't recommend them any longer.
In ALL LTCi plans, except for very very old policies (issued pre-1997; and even then many older policies were later modified to conform) issued prior to the IRS ruling for tax-advantaged LTCi, carriers conform to the same disability guidelines as Medicare: an inability to perform at least two ADLs.
Many people have homeowners insurance, but seldom make a claim. Does that render it a waste of money?
LTCi's greatest positive is the tax-free payment if Skilled Care Nursing OR Memory Care is needed.
There are, by some counts, up to 75 different types of dementia. Some are correctable (nutrition-based, for example). Most are not. Some types show a very fast physical/mental decline. Others can take a decade or more. We personally know three seniors who are or have struggled with dementia. One has declined drastically within 2 years. The other two lived for more than 10 years.
In 25 yrs of holding an LTCi policy, I have paid approx $63K in premiums. Remember, that is over a two-decade+ time period. We have no "cap" on benefits; they are paid until death. We also have an inflation rider that has increased our benefits to the point where the policy covers the market cost.
Current Memory Care in our area - my Spouse is at extremely high risk of dementia due to a stroke at age 50 - is between $10-18K per month.
If there is anyone on this board who could turn $63K into $180K per year for an unlimited period (assume average cost $15K/mo for facility), I not only salute you, I might even turn over our investment portfolio to you! This is not, btw, even taking into account that healthcare costs are rising faster than inflation (which has been true for over 50 yrs, I believe) and that facilities raise their prices annually.
LTCi plans are now extremely expensive - they were NOT when we started our policies - and difficult to obtain. I no longer suggest people get them, simply because most people either cannot quality due to health reasons, or just cannot afford them.
Lon's situation was not optimal for LTCi benefits. These are policies designed as a "backstop"; they will not cover all aspects of Assisted Living as they were originally viewed as facility-only care. Newer (post-2000) plans generally include home healthcare benefits, but those are strictly regulated; policyholders should never assume that everything needed for "staying at home forever" is included (and probably is not).
As our LTCi policies were sponsored by the state pension plan, benefit claims are managed by a third-party company. As soon as a claim is made, a care manager is assigned to that claim and is the insured's point of contact. At no time is there any need to negotiate directly with the insurance carrier; the care manager handles it all. This gives us a "comfort cushion" that buying an individual LTCi policy doesn't have - another reason why I don't recommend them any longer.
