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Honored Contributor
Posts: 9,305
Registered: ‎06-08-2016

The only people I know in Assisted Living are wealthy or they have a large family & the family pitched in on the bill every month.    Most of the rest of us expect to live in our homes with assistance from family.   Or if necessary at the end, a skilled nursing facility.

 

You can protect your assets in case you need Medicaid.   But you have to do it NOW, not when you  need it.

 

Insurance is a gamble.   It may not cover everything, or you may not need it at all.   There are many variables to consider when planning for old age.    And no matter how well we plan, we never know the outcome ahead of time.

 

Medicare only pays for short term nursing home rehab after a hospital in-patient stay

 

@LilacTree

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

Re: Over 50 and LTC plans

[ Edited ]

@tansy wrote:

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.  

 

 


ALL insurance is a gamble. You buy Fire insurance for your home but you certainly hope and pray you'll never need to use it. Of course you need to go through a reputable company. Isn't that just common sense?

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

@software wrote:

The only people I know in Assisted Living are wealthy or they have a large family & the family pitched in on the bill every month.    Most of the rest of us expect to live in our homes with assistance from family.   Or if necessary at the end, a skilled nursing facility.

 

You can protect your assets in case you need Medicaid.   But you have to do it NOW, not when you  need it.

 

Insurance is a gamble.   It may not cover everything, or you may not need it at all.   There are many variables to consider when planning for old age.    And no matter how well we plan, we never know the outcome ahead of time.

 

Medicare only pays for short term nursing home rehab after a hospital in-patient stay

 

@LilacTree


@software

I have no assets except my car which will be paid off by the end of this year, at which time I will sign it over to my daughter.  I haven't driven in over five years, so she has been using it anyway. 

 

My sister went to hospice when she was declared terminal.  I think Medicare and Medicaid paid for most of it, as she did not have any assets left.  She was there six months when she died.

 

Formerly Ford1224
We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. Elie Wiesel 1986
Respected Contributor
Posts: 3,327
Registered: ‎05-09-2016

I have a LTC policy that I bought (long before age 50) through my employer. I've continued the policy since I left and while the premiums rose pretty dramatically this year (about 35%), so did the benefits. Given my situation, it's a good choice, but that doesn't mean others need to do the same. 

~The more someone needs to brag about how wonderful, special, successful, wealthy or important they are, the greater the likelihood that it isn't true. ~

Respected Contributor
Posts: 3,458
Registered: ‎06-10-2015

@tansy wrote:

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.  

 

 


Thanks for mentioning this. Anyone interested in this usually expensive coverage should read the NYT article on what's happening with Penn Treaty. This might be especially instructive:

 

"Now, some fear Penn Treaty’s failure is a signal of more trouble to come in the long-term-care sector.

 

'“Liquidation is rare, but it does happen in bunches sometimes,” said Robert Hunter, director of insurance for the Consumer Federation of America. The organization has been warning about problems with long-term-care insurance since the early 1990s. In essence, companies underestimated the true cost of coverage and are struggling now to make good on all their promises.

 

'“There is definitely talk in the street that it’s still a high-risk situation for quite a few companies,” he said. “It’s not a healthy situation.”'

 

from "Policyholders in Limbo After Rare Failure of Insurer," NYT, 4-1-2017.

 

It might be wise to do what you can to check out the health of the company underwriting the policy, and know the extent of your state's guarantee policy in the event of failure. It's worth  noting that the Penn Treaty customers were compelled to continue  paying premiums for nearly a decade despite the distress of the company or face cancellation of their policies.

 

The article explains why the insurance industry turns a blind eye to their fellow insurers who are in distress--it's because they're the ones who will be funding that guarantee fund if the company fails:

 

"Health insurers fought the liquidation, too. State guarantee funds, it turns out, are not funded at all. When an insurance company goes under, all the surviving companies in that line of business are required to chip into the guarantor, with assessments based on their market share.

 

"Long-term-care insurance is classified as health insurance, so health insurers would get the assessment — even the ones that steered clear of long-term-care insurance and never sold a single policy. They were aghast at having to pay for other people’s mistakes."

Honored Contributor
Posts: 17,892
Registered: ‎07-03-2013

I'm in my fifties and plan to check into it.  I'd rather have it and not use it, than to need it and not have it.  You can't predict what will happen in the future.  I'm a little worried that having cancer two years ago will go against me, but that's why I have to check into it.

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

@151949 wrote:

@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!


Thank you for your concern but we will choose to keep our money to invest and not fear the maybe of the 10 million dollar monthly LTC bill that looms out there.

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

@tansy wrote:

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.  

 

 


We BARELY dodged this bullet, my mother was moments away from signing with a company that offered a plan through the hospital she worked at ( a Nationally known and recognized hospital).

A few years ago she ran into an old co-worker who reported that the premiums went up over 70% over the last few years, then the company went under.  All that money gone.

Many of these companies have gone under as the costs skyrocket and people live longer.

My mother was so thankful she listened to me!

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

@software wrote:

 

You can protect your assets in case you need Medicaid.   But you have to do it NOW, not when you  need it.

 

Insurance is a gamble.   It may not cover everything, or you may not need it at all.   There are many variables to consider when planning for old age.    And no matter how well we plan, we never know the outcome ahead of time.

 

Medicare only pays for short term nursing home rehab after a hospital in-patient stay

 

@LilacTree


@software

What do you mean by protect your assests?  Do you mean Medicaid/Medicare fraud?  Why is it our job (the taxpayer) to pay your way?

Our savings and assests are meant to take care of us in our old age (or any age).  Do you plan on taking it with you?

Esteemed Contributor
Posts: 6,633
Registered: ‎10-21-2010

Re: Over 50 and LTC plans

[ Edited ]

@Abrowneyegirl wrote:

@software wrote:

 

You can protect your assets in case you need Medicaid.   But you have to do it NOW, not when you  need it.

 

Insurance is a gamble.   It may not cover everything, or you may not need it at all.   There are many variables to consider when planning for old age.    And no matter how well we plan, we never know the outcome ahead of time.

 

Medicare only pays for short term nursing home rehab after a hospital in-patient stay

 

@LilacTree


@software

What do you mean by protect your assests?  Do you mean Medicaid/Medicare fraud?  Why is it our job (the taxpayer) to pay your way?

Our savings and assests are meant to take care of us in our old age (or any age).  Do you plan on taking it with you?


I think the real scary thing is if a  spouse has something happen and needs long term care. What if the other spouse has to pay all the SS of the sick spouse to a nursing home. If that sick spouse was the soul money maker the healthy spouse would take a huge income cut because they would have to pay the SS of the sick spouse to a care facility. 

 

In saying that I am not sure I would buy this insurance. It really does depend on your finances and how much money you have invested. I think it is a very personal thing. How much family you have around also would go into this decision.