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Regular Social Butterfly

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

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Message 41 of 46

I believe kriklar is referring to a CCRC - continuing care retirement community, as opposed to the traditional nursing home or senior community. Contracts are legally differentiated by A, B, and C - you can Google to get details on the exact details, but I'll cover a little bit, below.

There are different kinds of CCRCs, some run by profits, some by non-profits. In one type, the front-end 'buy-in' is manageable, but the costs for moving from independent living to assisted living and thence to nursing care, rises according to market rates.

At a different CCRC, you would pay a large buy-in up-front. In return, whatever cost you pay for independent living remains the same as you move from assisted living to full nursing care.

Most CCRCs require you to pass a physical examination and proof of finances. You need to be mentally and physically capable of living independently. Rental costs are higher than straight apartment rentals because they generally provide services to their residents.

There is no standard list of services, but usually it includes at least one meal, recreational and exercise facilities, group activities, limited transportation, and sometimes a small or limited hour clinic on-site.

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Treasured Social Butterfly

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

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Message 42 of 46

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

Forgive me for being stupid, but why would anyone move into a long term care facility, when they're in "good shape"? That would only make sense if you moved into a continuum of care facility, in the "independent" section. But overall, that might wind up more expensive, than if you remained at home until you actually needed LTC.

I'm 58; I can personally see vast changes in the whole system .. both coverage & facilities .. over the next 20 years, so maybe it's wiser for people under a certain age today, to take a "wait and see" approach?


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Valued Social Butterfly

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

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Message 43 of 46

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

Tough decision. The premiums go up for late signup drastically and they require a certain level of fitness and mental state. Some retirement facilities here actually guarentee LTC for what is a reasonable amount if you move in in good shape. That's a real bonus, but the move is expensive and carrying costs high.

I always wonder if statistics justify the steep increase in premiums with age. Of course the risk that you will need LTC increases with age, but the length of time covered can be a lot less than for an early alzheimer or other debilitating illness victim.

Karl

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Trusted Social Butterfly

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

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Message 44 of 46

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

   I kept looking at LTC policies, but that was all --- just kept looking and didn't end up purchasing one. They are expensive. I thought it was a good idea to simply get one that paid a set cash amount, maybe $100 to $200 a day. It wouldn't cover everything, but would cover a portion, enough to perhaps offset ss benes.

   We have no family that could take care of us. I would not count on either of us, as spouses, caring for the other not knowing what kind of physical shape we would be in down the line.

   I probably should take another look at getting a basic cash policy, assuming they still exist. 


Just think. The world was built by the lowest bidder.
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Treasured Social Butterfly

Long Term Care - Love it or Hate it?

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Message 45 of 46

Money Magazine's January/February issue has an article titled, "Is Long-Term-Care Insurance Still Worth the Price?" The first paragraph says that John Hancock wants to hike premiums for the bulk of its customers by an average of 40% this year, and that Genworth Financial is asking for an 18% increase on some policies.

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

Another question is whether people are realistic about availing themselves of professional care & really get their money's worth from a LTC policy, when they actually need it. A friend of a friend has a long-term-care policy for a while, but now that she needs help at least temporarily, she & family members would rather have her stay with one of them & they'd have to handle the caregiving themselves!


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Treasured Social Butterfly

Long Term Care - Love it or Hate it?

3,227 Views
Message 45 of 46

Money Magazine's January/February issue has an article titled, "Is Long-Term-Care Insurance Still Worth the Price?" The first paragraph says that John Hancock wants to hike premiums for the bulk of its customers by an average of 40% this year, and that Genworth Financial is asking for an 18% increase on some policies.

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

Another question is whether people are realistic about availing themselves of professional care & really get their money's worth from a LTC policy, when they actually need it. A friend of a friend has a long-term-care policy for a while, but now that she needs help at least temporarily, she & family members would rather have her stay with one of them & they'd have to handle the caregiving themselves!


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