Assisted/Long-term Care Insurance

[JPKII]

Hi All, I am researching options for assisted/long-term care insurance for myself and my wife. I'll be 50 next week and my wife is 46. Seems like now may be the best time to take out a policy. My thinking is I'd rather get this paid for while I'm still operating on regular salary as opposed to my retirement savings. But I ain't no financial genius so...

What are your opinions on this type of insurance? Are we too young to take a policy like this out? Any general suggestions??

 

[VegasMichael]

Hi All, I am researching options for assisted/long-term care insurance for myself and my wife. I'll be 50 next week and my wife is 46. Seems like now may be the best time to take out a policy. My thinking is I'd rather get this paid for while I'm still operating on regular salary as opposed to my retirement savings. But I ain't no financial genius so...

What are your opinions on this type of insurance? Are we too young to take a policy like this out? Any general suggestions??

I've been thinking about this too. Haven't done a whole lot of research on it though. I guess some of it depends on what you anticipate your finances will be like if/when you need long term care.

 

[JPKII]

I've been thinking about this too. Haven't done a whole lot of research on it though. I guess some of it depends on what you anticipate your finances will be like if/when you need long term care.

Same. My parents are in their early 80's. Many of their friends are transitioning to assisted care facilities. My parents did well in retirement planning but certainly can't afford the expense of a care facility (about $5K per month for a couple). So now, when they talk about it, its almost a "I wish I would have..." discussion. That's why this is ringing so close to home at the moment.

 

[VegasMichael]

Same. My parents are in their early 80's. Many of their friends are transitioning to assisted care facilities. My parents did well in retirement planning but certainly can't afford the expense of a care facility (about $5K per month for a couple). So now, when they talk about it, its almost a "I wish I would have..." discussion. That's why this is ringing so close to home at the moment.

My mother is a retired RN and she thinks it's a waste because the average stay in the care facilities isn't that long. But again, it depends on how much money you have in retirement and if you really want that retirement money to go towards a nursing facility.

 

[ford fanatic]

Average stay in a nursing home is about 3 point something years, best to buy after age 62 if you're not able to self insure.

 

[DriftwoodSVT]

My father had GTL (Guaranteed Trust Life). They covered a large portion of his assisted living for the 2 or so years he was in there. He took the policy out in his mid 50s and passed at 74.

 

[JPKII]

Thanks all. Good input.

 

[Klaus]

I do not have anything to add on the personal finance question aspect but I just went through this with my step mom, father and aunt.

I brought in HHA for my step mom. Her LT insurance paid 200 a day. HHAs were 400 a day. The way it works is you pay and LT insurance reimburses you.

My Aunt is now in a memory care facility. I am working on getting her LT insurance covered. I forget what the term is but there is a period before it kicks in. Usually it is 90 days. It takes a while for the assessment to occur. They seem to drag this out as long as possible.

I expect my Aunt's to cover 2k a month. I am stroking 10k a month right now for her care.

One thing to keep in mind is that once you are in a facility they will not kick you out. If you run out of money they will get paid from the government and/or charity.

With my Aunt I am going to carve her out and turn over her remaining assets to the facility. They will fund from that until it runs out and then rely on government. I have an in law that had a farm that was probably worth $1m which he gave to his nephew and then the govt paid for his nursing home because he was broke.

 

[VegasMichael]

I do not have anything to add on the personal finance question aspect but I just went through this with my step mom, father and aunt.

I brought in HHA for my step mom. Her LT insurance paid 200 a day. HHAs were 400 a day. The way it works is you pay and LT insurance reimburses you.

My Aunt is now in a memory care facility. I am working on getting her LT insurance covered. I forget what the term is but there is a period before it kicks in. Usually it is 90 days. It takes a while for the assessment to occur. They seem to drag this out as long as possible.

I expect my Aunt's to cover 2k a month. I am stroking 10k a month right now for her care.

One thing to keep in mind is that once you are in a facility they will not kick you out. If you run out of money they will get paid from the government and/or charity.

With my Aunt I am going to carve her out and turn over her remaining assets to the facility. They will fund from that until it runs out and then rely on government. I have an in law that had a farm that was probably worth $1m which he gave to his nephew and then the govt paid for his nursing home because he was broke.

Good things to know. You really are a good man to be there for your family.
Question about not kicking one out if they run out of money: Can you be moved to another facility? I'd be worried if I ran out of money I might be moved from a decent facility to a sub par one.

 

[sleek98]

Usually the claw back period is 5 years on asset transfers prior to going on govt pay nursing.

Around here, maybe its state by state, each home has to provide so many govt pay beds. Then there are 100% govt pay homes as well. Most are shitty where you would not want to be in, a few are nice. The private homes that are govt pay typically have LONG LONG wait times. I believe they can move you out, my wife's uncle is a driver at one locally and he was talking about how one lady ran out of money and got lucky that a spot was open at the nicer place.

 

[JimCSHO]

Look at the option that many life insurance policies have now for LTC. The policy is a life insurance policy that allows you to access the death benefit for LTC if you need it. If you never need it, then it pays a death benefit. If you need to use it, then the death benefit is reduced by what you used.

The advantage to it over regular LTC is that death benefit. If you buy a regular LTC policy and never use, then there is no return on the investment - just like your car insurance, it is there if you need it but otherwise you never access the policy and the premiums never get recovered.

John Hancock used to have a product. I don't know if they still have it though

How Hybrid Life Insurance Pays For Long-Term Care

There’s a good chance you’ll need long-term care as you age. But if you’re like many Americans, you likely don’t have a plan to pay for this sort of care. The cost of long-term care (LTC) insurance can be a deterrent to getting coverage. “Traditional plans have a bad rap because there have been s

www.forbes.com

Prudential information:

https://www.prudential.com/personal/life-insurance/find-life-insurance-policy/benefit-access-rider

 

[03Sssnake]

My folks have it and its been a godsend They now have some help in the home M-F from like 8-5.. my old man is in bad shape, so its been a life saver for my mother. I have been over there most of the year, have hardly been to my own home since the beginning of the year.

I believe they have genworth longterm care insurance.

 

[Klaus]

Good things to know. You really are a good man to be there for your family.
Question about not kicking one out if they run out of money: Can you be moved to another facility? I'd be worried if I ran out of money I might be moved from a decent facility to a sub par one.

Not sure about that. I will say that the facility that she is in has told me that she will not be moved out if she runs out of money. It is almost as if they are proud of it. Her place is very nice, too.

 

[JPKII]

Look at the option that many life insurance policies have now for LTC. The policy is a life insurance policy that allows you to access the death benefit for LTC if you need it. If you never need it, then it pays a death benefit. If you need to use it, then the death benefit is reduced by what you used.

The advantage to it over regular LTC is that death benefit. If you buy a regular LTC policy and never use, then there is no return on the investment - just like your car insurance, it is there if you need it but otherwise you never access the policy and the premiums never get recovered.

John Hancock used to have a product. I don't know if they still have it though

How Hybrid Life Insurance Pays For Long-Term Care

There’s a good chance you’ll need long-term care as you age. But if you’re like many Americans, you likely don’t have a plan to pay for this sort of care. The cost of long-term care (LTC) insurance can be a deterrent to getting coverage. “Traditional plans have a bad rap because there have been s

www.forbes.com

Prudential information:

https://www.prudential.com/personal/life-insurance/find-life-insurance-policy/benefit-access-rider

Thank you. I have term life and will chat with my agent about converting/adding. Great idea.

 

[VegasMichael]

My folks have it and its been a godsend They now have some help in the home M-F from like 8-5.. my old man is in bad shape, so its been a life saver for my mother. I have been over there most of the year, have hardly been to my own home since the beginning of the year.

I believe they have genworth longterm care insurance.

My parents are in their 80s now and truly hope I don't have to go through what you have and what your parents have. I guess my question would be if your folks really need the help why is it just Monday through Friday? Is that something that is written into the insurance contract?

 

[03Sssnake]

My parents are in their 80s now and truly hope I don't have to go through what you have and what your parents have. I guess my question would be if your folks really need the help why is it just Monday through Friday? Is that something that is written into the insurance contract?

There are stages of approval, looks like we will get weekend help approved. There is a nurse and PT person that also come out 1-2 x weekly and believe their assessments are a part of this process.

 

[VegasMichael]

There are stages of approval, looks like we will get weekend help approved. There is a nurse and PT person that also come out 1-2 x weekly and believe their assessments are a part of this process.

I know I'm being a pain in the ass as usual but are the stages of approval inre the terms of the insurance contract or the doctors?

 

[03Sssnake]

I know I'm being a pain in the ass as usual but are the stages of approval inre the terms of the insurance contract or the doctors?

Lol no worries, you just ask and have supporting documentation to support your request.. things have to be carefully worded since you are dealing with insurance.. with regard to my pops, he is fall risk and can’t get to the bathroom by himself. Be blunt, to the point and perhaps embellish a bit to get your point across and the level of care needed.

 

[VegasMichael]

Lol no worries, you just ask and have supporting documentation to support your request.. things have to be carefully worded since you are dealing with insurance.. with regard to my pops, he is fall risk and can’t get to the bathroom by himself. Be blunt, to the point and perhaps embellish a bit to get your point across and the level of care needed.

Pain in the ass checking in again.
Supporting documentation from whom? To me, it will only hold some weight if it is from medical professionals.

 

[03Sssnake]

Pain in the ass checking in again.
Supporting documentation from whom? To me, it will only hold some weight if it is from medical professionals.

Correct, from his doctors, caregivers etc..