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Honored Contributor
Posts: 12,310
Registered: ‎03-09-2010

@software...I have a friend living in Florida, they own a condo...her DH is in a nursing home, he just went in about 6 weeks ago.....and she hired an elder attorney for $15,000.00 to do legal work so that she and her husbands assets are separated, in order to keep assets safe.

 

I really did not want to quiz her to much but she was pretty forthcoming about what was going on...I am not a fan of hiding money to get out of paying for care.  He will have his pension and social security which I am going to assume will go for his care. Her assets will not be touched.  The attorney assured her that he will make it happen. 

 

I was always under the assumption if your were going to move assets around it had to be done long before someone needed care.

 

Respected Contributor
Posts: 3,104
Registered: ‎09-12-2010



@cater wrote:

I have been paying Penn Treaty the exact same amount since I took it out 14 years ago.


 

      


I had a policy too for about the same amount of time.  In the last couple of years that payment went up almost triple and I didn't think it was worth keeping.  All that money wasted.  Be sure and read the fine print.  I didn't think mine could go up either.  Do some research and you will find there are better ways to invest that money.  A lot of these insurance companies are not wanting to sell this insurance. 

Honored Contributor
Posts: 13,399
Registered: ‎07-15-2016

I've looked into a couple of Catholic facilities if it gets to that point where I need palliative care and there is the option of at-home palliative care. 

 

Otherwie ... in our family we generally take care of one another. 

Honored Contributor
Posts: 30,916
Registered: ‎05-10-2010

@noodleann wrote:

@chrystaltree wrote:

@cater wrote:

I have been paying Penn Treaty the exact same amount since I took it out 14 years ago.


 

       Well, that's how it works.   You take it out at 40 or 45 and pay for 30 years and maybe you need the coverage, maybe you won't.  But you have the coverage.  They don't increase your premiums which aren't terribly expensive because you took it out when you were young and  the risk to the insurer is very, very low for the insurer. It's an entirely different thing if you want the coverage at 50 o 55, assuming anyone will even give it to you.


The NYT article states that LTC is defined as health insurance. The article also refers to rate increases, which usually have to be approved by the state--so premiums can and do rise.  The point of the article is that you may not have the coverage you thought you had, because some of these firms are going under. From what the article suggests, more companies will follow into insolvency, especially with the baby boomer cohort starting to hit redemption age.

 

We need another solution. We also need to do a lot more to promote healthful lifestyles. Medicine and science need to find out how to prevent and cure all forms of dementia, which is a major drain on care resources.

 

There is a solution...it's called savings.  If people saved 5% of the income beginning in their 20's, even 30's; they would have enough to cover their health care needs in their senior years.  We Americans will save for fancy vacations and cars and engagement rings and big splashy weddings but we will not save long for our futures. 


 

Honored Contributor
Posts: 39,554
Registered: ‎08-23-2010

Not everyone has the assets that need protecting to get a LTC policy.   Many will spend down until they have minimal assets and go into a low level nursing home.

 

There's 3 types of possible care from the best policies ....

 

1 -- Home care, which most people prefer, but can be the most expensive.

 

2 -- Skilled nursing ... grandma breaks her hip, goes into a nursing home for a few months, heals, and goes back to her home.

 

3 -- Residential care -  an elderly person has deteriorated to the point they can no longer live at home and will go into a nursing home for the rest of their lives.

 

One very important feature is to ALWAYS purchase the inflation rider which increases the pay outs each year.   Many states no longer allow LTC policies to be sold without the inflation rider, but the annual increase is usually 3 or 5 percent.

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

@chrystaltree wrote:

@noodleann wrote:

@chrystaltree wrote:

@cater wrote:

I have been paying Penn Treaty the exact same amount since I took it out 14 years ago.


 

       Well, that's how it works.   You take it out at 40 or 45 and pay for 30 years and maybe you need the coverage, maybe you won't.  But you have the coverage.  They don't increase your premiums which aren't terribly expensive because you took it out when you were young and  the risk to the insurer is very, very low for the insurer. It's an entirely different thing if you want the coverage at 50 o 55, assuming anyone will even give it to you.


The NYT article states that LTC is defined as health insurance. The article also refers to rate increases, which usually have to be approved by the state--so premiums can and do rise.  The point of the article is that you may not have the coverage you thought you had, because some of these firms are going under. From what the article suggests, more companies will follow into insolvency, especially with the baby boomer cohort starting to hit redemption age.

 

We need another solution. We also need to do a lot more to promote healthful lifestyles. Medicine and science need to find out how to prevent and cure all forms of dementia, which is a major drain on care resources.

 

There is a solution...it's called savings.  If people saved 5% of the income beginning in their 20's, even 30's; they would have enough to cover their health care needs in their senior years.  We Americans will save for fancy vacations and cars and engagement rings and big splashy weddings but we will not save long for our futures. 


 


Saving in your 20s and 30s isn't going to help people who are essentially being defrauded because they "saved" by paying into an imminently worthless insurance policy.

 

Saving in your 20s and 30s isn't going to find a cure for the different forms of dementia that are going to bankrupt many families.

 

I'm an American and last took a "vacation" about 35 years ago. My car cost $500 and will turn 20 next year. I've never bought an engagement ring and don't go to weddings, but from what I've observed, people who do usually charge the associated expenses, they don't save for them.

 

Preaching about what should have happened half a century ago and making sweeping mischaracterizations about the habits of an entire country doesn't further the conversation and isn't going to help fix the problems we're now facing.

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

@ccassaday wrote:

From what I understand the state can not take your home if your spouse is still living in it.


This is correct.

Honored Contributor
Posts: 18,604
Registered: ‎10-25-2010

@software wrote:

If you own a home, you can't go on Medicaid.   If you want to pass your home to your children, do it now.  No I won't take it with me.   

 

If you require skilled nursing care, you do have to use up all your assets before you go on Medicaid.   The state, which administers Medicaid,  allows you to protect your home from having to sell it to pay for your care.  If you don't like those rules, take it up with the state. 

 

It's legal to protect your home from the state getting it to pay for your care.

 

@Abrowneyegirl

 

 


Lots of people who own their own home are on Medicaid.  Those are the people who are living in their homes too 

 

I think you meant to say is that to live in a Facility instead of your home, you can't own your home. you must sell and pay your bills and your assisted living expenses until most of your money has run out before Medicaid will pay for your assisted living.

Honored Contributor
Posts: 18,604
Registered: ‎10-25-2010

LTC insurance has changed a lot in the last 20 years.   I was offered LTC by my employer when I was in my 40's at a rate that was guaranteed not to ever go up.

 

A policy for my husband and me was over $200 a month and that was at least 20 years ago.  I was tempted to purchase, but $200 a month was way too much money for us to afford at the time.  I have three children and was looking at college bills.

 

I just figured that I saved over $48,000 by not purchasing so far.  Would I like to have it? yes, but too expensive and might not be needed.

 

I will take my chances with Traditional Medicare and a good supplement plan when the time comes.  

 

We can't be sure our health care insurance won't change again.  I have seen many, many changes over the years.  

 

I don't want to be Insurance rich and cash poor.

 

 

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

I don't know why any of us are debating all this anyway. Sometime in the next 4 years it will surely all radically change.