Reply
Honored Contributor
Posts: 25,929
Registered: ‎03-09-2010

Over 50 and LTC plans

[ Edited ]

Another discussion brought up the subject of Long term care  plans. Medicare and advantage plans pay very little when someone needs post hospital care such as rehab or skillecd nursing care. To purchase long term care insurance is possible but can be very expensive if you wait until you are a senior to purchase it. Posters have written on this board about having to pay hundreds of dollars a month for it - and they have little coverage. We purchased our policies when we each turned 50 - we bought Met Life thru AARP and we are very pleased with our policies. We each pay $45/month for ours because getting them while we were younger - we paid over the long term. Certainly we hope to never use them, but if we do need them - we have $300,000 a year in coverage.That should more than cover our needs without financially devistating our spouse. The cost of  long term care going up & up all the time - I believe this is an insurance that people really need to investigate - and do it while you are younger because it is much cheaper to pay over the long term than to try to get it later.

Honored Contributor
Posts: 12,997
Registered: ‎03-25-2012

As I have mentioned before, I have LTC, bought into it when my employer offered it to us many years ago.  I have to say it is the best decision I ever made because I couldn't do without it now.  I have been getting benefits for a long time and they are significant.

 

My policy allows care in the home by family members and has an "indefinite" term.  I hear they are much more expensive and limited currently, that is IF you can even find one these days.  The company I am with doesn't even offer it anymore, but I am "grandfathered" in, so I will not lose it.

Well worth the money.  One can never know when a debilitating illness can strike.

 

 

 

 

 

 

 

 

Formerly Ford1224
We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Elie Wiesel 1986
Honored Contributor
Posts: 25,929
Registered: ‎03-09-2010

I have used my LTC policy when I needed in home rehab after ortho surgery so I wasn't using up the limited amount of rehab visits on my health insurance. They paid for the home nurse - the aide who came to assist me to get in the shower , and PT. When I was able to go out to PT I switched over to the one from my health ins.

Honored Contributor
Posts: 16,233
Registered: ‎03-09-2010

In addition to the cost to you of LTC at whatever age, I'd ask potential buyers also to consider what the source of their old-age income will be, what assets they have to protect, and what benefits their retirement  state offers. 

 

There is way more to making the decision to buy LTC than just the money you think you need once disaster strikes - especially now that the LTC industry is having so much trouble maintaining premiums close to where they start, be sure to consult a planner who understands your own situation.

Respected Contributor
Posts: 3,537
Registered: ‎03-15-2010

What I do not understand about LTC insurance is why start paying in early to 'obtain a reduced rate'  but build no cas value?  Why not just start later and pay a higher rate closer to the time of need.

By the time my co-worker turns 70 she will have paid 10's of thousands into the insurance and then the premium will increase (but to a rate less than if she had started at 70 yrs old)

Of course the plan does not cover unlimited LTC there are time limits and caps to everything.

If she does not use that insurance what a waste.

Valued Contributor
Posts: 774
Registered: ‎03-09-2010

I worked in LTC during my career. Typically these are extremely expensive and have very short term coverage. an example would be if you needed skilled services like therapy or IV's but not for long term coverage. Most Dr's and people working in these settings don't have LTC insurance. Definately talk to someone before you purchase such insurance because it may not cover what you think it does.Medicare covers short term skilled services like a hip or knee replacement. I looked at a policy for a Dr. recently. It cost $12,000 a year for a couple and only one spouse could use it at a time. So please have it looked over before buying.

Honored Contributor
Posts: 12,997
Registered: ‎03-25-2012

Re: Over 50 and LTC plans

[ Edited ]

@fluffysmom wrote:

I worked in LTC during my career. Typically these are extremely expensive and have very short term coverage. an example would be if you needed skilled services like therapy or IV's but not for long term coverage. Most Dr's and people working in these settings don't have LTC insurance. Definately talk to someone before you purchase such insurance because it may not cover what you think it does.Medicare covers short term skilled services like a hip or knee replacement. I looked at a policy for a Dr. recently. It cost $12,000 a year for a couple and only one spouse could use it at a time. So please have it looked over before buying.


@fluffysmom

Several months ago, out of curiosity, I looked into assisted living facilities through the agency "A Place for Mom."  The monthly cost of most of them was in the $5,000 range.  I have no assets, only my SS income and the LTC. 

 

Coincidentally, my agent at the LTC company called me yesterday for any updates, etc.  He asked if I had any questions and I asked him what my policy would cover for assisted living.  The amount he quoted was only $500 more than what I am receiving now.  No way I could ever afford assisted living, unless Medicare pays for some of it.  I guess if the day comes when I may need it, I'll find that out.

 

ETA:  I just looked it up . . . they don't.

 

Formerly Ford1224
We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Elie Wiesel 1986
Honored Contributor
Posts: 25,929
Registered: ‎03-09-2010

@Abrowneyegirl wrote:

What I do not understand about LTC insurance is why start paying in early to 'obtain a reduced rate'  but build no cas value?  Why not just start later and pay a higher rate closer to the time of need.

By the time my co-worker turns 70 she will have paid 10's of thousands into the insurance and then the premium will increase (but to a rate less than if she had started at 70 yrs old)

Of course the plan does not cover unlimited LTC there are time limits and caps to everything.

If she does not use that insurance what a waste.


I am 68 years old - to this point I have paid a total of $9700 in premiums to my LTC - this amount could be used up in one month in a skilled care facility if the person needed a lot of care.

Good luck trying to buy LTC insurance when you are old and need it!

Honored Contributor
Posts: 14,092
Registered: ‎01-02-2011

It's a gamble.  First, you may or may not need it.  If you do need it, there's a chance the company has failed.  There's a LTC company -- Penn Treaty -- going under right now.  

 

 

Honored Contributor
Posts: 25,929
Registered: ‎03-09-2010

Re: Over 50 and LTC plans

[ Edited ]

@fluffysmom wrote:

I worked in LTC during my career. Typically these are extremely expensive and have very short term coverage. an example would be if you needed skilled services like therapy or IV's but not for long term coverage. Most Dr's and people working in these settings don't have LTC insurance. Definately talk to someone before you purchase such insurance because it may not cover what you think it does.Medicare covers short term skilled services like a hip or knee replacement. I looked at a policy for a Dr. recently. It cost $12,000 a year for a couple and only one spouse could use it at a time. So please have it looked over before buying.


My DH & I have 2 separate policies - so neither relates to the other, as far as only one getting care. They don't sell you this insurance until you are 50 so we bought them 4 years apart. Of course you'd want to be sure to read the policy and be certain what your getting.Doesn't that apply to everything? We have Met Life - a well known company who has a reputation for great service. They no longer sell this insurance but they grandfathered those who already had it through AARP.