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Regular Social Butterfly

RE: Long Term Care - Love it or Hate it?

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Message 31 of 46

In Response to RE: Long Term Care - Love it or Hate it? by KidBoy2

No, I think Astraea understood the point you were making. But she feels she can afford to self-fund. Many people are fortunate and like her, can do so.

Many more are not so fortunate. For those - which includes me and my DH - we had to make the choice of whether to buy an LTC policy or not.

Will premiums go up? Almost assuredly, yes. Are there ways to compensate for it? Yes, there are. Insurers will always offer you the option of 'freezing' your daily rate (bad idea until healthcare costs get under control) or reducing the benefit period. These are not ideal, but may have to be considered and some Monte Carlo scenarios run to find if they are viable alternatives for you.

I love to garden, and one of the maxims is, "The best time to plant a tree is 10 yrs ago. Failing that, the best time is now." You don't get points with insurers or Mother Nature for waiting too long, LOL.

When we purchased LTC insurance 11 yrs ago, I told DH to expect price increases periodically. We have received 2 class increases over the years, but because we budgeted for them (and more) and the policies were affordable to begin with, we are able to manage the cost.

You can't keep reading articles about advances in fighting diseases, and increases in longevity, without realizing that means the classic insurance actuarial model for pricing healthcare policies of all types, is in a state of flux. When the fastest growing group of people on the planet Earth is the age group of 80+ yrs, that should tell you every country is facing the issue of caring for the elderly.

According to Medicare, they spent 80% of their budget on 20% of the people - and that DOESN'T include nursing care costs, as those are currently backed up by Medicaid. With Medicaid in trouble - Texas is already seeking to withdraw from the Medicaid system, Arizona is limiting transplant costs even for young adults - it's not a system I feel comfortable depending upon. Unlike Astraea, we don't have enough to self-insure for more than a few months. Ergo, it made sense to buy LTC insurance.

People are living longer with critical diseases that used to kill them quickly, but now can take decades before the end comes.

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Treasured Social Butterfly

RE: Long Term Care - Love it or Hate it?

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Message 32 of 46

In Response to RE: Long Term Care - Love it or Hate it? by KidBoy2

Insurance companies don't just make a profit, which I fully understand, but their profit depends on people dying quickly & not needing to use their LTC contracts. That's similar to all insurance; they like collecting premiums, but do all they can to minimize payouts to clients.

Please try to avoid your sarcasm; it's misplaced & not appreciated.


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Valued Social Butterfly

RE: Long Term Care - Love it or Hate it?

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Message 33 of 46

In Response to RE: Long Term Care - Love it or Hate it? by ASTRAEA

 

OMG Insurance companies make a profit! 

 

You missed my point and/or do not care. Fine.

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Treasured Social Butterfly

RE: Long Term Care - Love it or Hate it?

3,149 Views
Message 34 of 46

In Response to RE: Long Term Care - Love it or Hate it? by KidBoy2

I probably have enough of a nest egg, not to need LTC. It's like all insurance; they wouldn't offer it, if statistically insurance companies weren't making enough of a profit from all their clients. So the longer people live & need some form of LTC, the more expensive these contracts will become.


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Valued Social Butterfly

RE: Long Term Care - Love it or Hate it?

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Message 35 of 46

In Response to RE: Long Term Care - Love it or Hate it? by ASTRAEA

 

 it's already more expensive than we'd like. I mentioned that it is better to get when you a younger because it is. The older you are it not only costs more but the chances of health conditions increase with age thus more chances of being turned down for LTC insurance.

 

Yes its more expensive than you would like but you should still get it if you do not want to be a ward of the government if you need LTC  and do not have like a million in assets. If you do not have any assets or few assets you can just give them up when you need LTC and go on Medicaid 

I did not get LTC until I was 65. 

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Treasured Social Butterfly

RE: Long Term Care - Love it or Hate it?

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Message 36 of 46

In Response to RE: Long Term Care - Love it or Hate it? by KidBoy2

So if all of us here (meaning AARP members or those of AARP-eligible age) are older than 50, it's already more expensive than we'd like.


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Valued Social Butterfly

RE: Long Term Care - Love it or Hate it?

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Message 37 of 46

In Response to Long Term Care - Love it or Hate it? by ASTRAEA

 

You posted..........What do you do if you're 10 years into a policy, and they raise rates like that?

 

You pay it. I did. When the costs go sky high the insurance companies have no choice if they want to stay in business.

 

I think most people expect "big brother" to pay for their care and do not even think about taking our a LT Care policy.....sadly we live in a "government owes me" society. 

 

LT Care insurance is not that expensive if one would take it out before age 50. 

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Treasured Social Butterfly

RE: Long Term Care - Love it or Hate it?

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Message 38 of 46

My cousin just sent me a link to this video, and since we're talking about senior care, I thought a little mood-lightening might be appreciated.

The story is that a friend of the couple who founded "Home Instead Senior Care", Mary Maxwell, was asked to give the invocation at the company’s 2009 Convention. Initially it seemed like a normal prayer, but it soon took a very funny turn. Her deadpan delivery soon had the franchise owners rolling in the aisles:

 http://www.caregiverstress.com/2010/07/a-reminder-that-laughter-is-the-best-medicine/

 


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Valued Social Butterfly

RE: Long Term Care - Love it or Hate it?

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Message 39 of 46

In Response to RE: Long Term Care - Love it or Hate it? by kom2010

Thanks fotr the details!

karl

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Valued Social Butterfly

RE: Long Term Care - Love it or Hate it?

3,495 Views
Message 40 of 46

In Response to RE: Long Term Care - Love it or Hate it? by ASTRAEA

I hope there will be improvements soon in health care. Obviuosly we chose not to move at a more advanced age so it is a personal decision ---and a gamble. LTC is the same. Medicare and a medigap do well for even major health problems from our experience, but others haven't been so fortunate.

Karl 

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