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Re: Long Term Care insurance policies cost

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Message 11 of 24

@jo78203842

Read your CNA LTC policy.  CNA hasn't sold LTC in a long time.

 

New York Time 06/07/2013 - Fine Print and Red Tape In Long-Term Care Policies

 

ALTERNATE PLAN OF CARE Some policies have provisions for what they call “alternate plans of care,” which experts said implied a certain degree of flexibility. “People read those and say, ‘Look, it says they will do this,’ ” said Ms. Burns. In reality, “they will consider something different, but the insurer makes the ultimate decision.”

 

Continental Casualty Company, a subsidiary of the CNA Financial Corporation, sold policies with a similar provision, which could potentially allow the insured to receive benefits for care, say, in the home instead of a nursing home, Mr. Kantor said. But since the CNA unit stopped selling the policies in 2003, he said they were making a habit of no longer honoring those provisions. “The insurance company is insistent that they have the right not to approve the plan,” said Mr. Kantor, who is representing a woman with Alzheimer’s disease whose request for an alternate plan was not even considered. “But it was not sold that way.”

 

more at the NYT link

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Re: Long Term Care insurance policies cost

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Message 12 of 24

We signed up for CNA long term care insurance, about 10 years ago. We thought it would be an excellent idea, because we have an only child. We didn’t want to bankrupt her with that kind of cost. The policy states whatever the market rate is for monthly nursing home care. Yes the cost has increased over the years, but by the time we are ready for that it should be over $10,000.00 a month. It’s at $7,000.00 now. We are both covered the cost per year is $2,800.00. I am 68 he is 62. We are very healthy, I have retired, my husband will retire at age 66. 

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Re: Long Term Care insurance policies cost

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Message 13 of 24

My chidren think it is the best thing I ever did when I got my LTC insurance.  Granted i pay in each year a hefty amount, but I know that I can stay in my own home and be able to afford care.  If I don't use all the money I put in, my children can receive it as my beneficiaries.  And with my policy I don't have to have to go through an agency for home care, but I can hire someone local or even a family member.  Since I live alone, it gives me a feeling of security that I will not end up in a nursing home.

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Re: Long Term Care insurance policies cost

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Message 14 of 24

That was a VERY good deal.  Not doable at your age today or better said, not doable for anyone today.  Our premium began 18 yrs ago at about $2,200, now $3,000+.  I don't know how much the benefits have compounded. But it's easy to call and find it.  As noted, the money is shared between me and spouse.  If I use 40%, spouse can tap into the other 60%.  When the fund is done, that's it.  Premiums are waived when we start taking benefits.  

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Re: Long Term Care insurance policies cost

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Message 15 of 24

My wife and I are 78 years old and we both have long term care insurance. We took out the polices in 1996 (21 years ago) and the premiums were $180 per year, each. They are now $1,348/year each. Our long term care benefits started out at $100/day and increase $5/day each year and are now at $210/day, or $6,300 per month. This daily benefit will provide coverage in many nursing  care facilities at todays prices. Also, our benefit is for life time care coverage, with no number of years limit. The increases have been subatantial the last few years and I shopped around for alternative insurance coverage and found out that what we have, life time coverage, is not available any more and  all were much more costly. After looking at our annual cost of $1,348 compared to one year in a nursing home at $75,000, it appears we still have a good deal. The insurance company is Ameriprise River Source. Robert B.

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Re: Long Term Care insurance policies cost

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Message 16 of 24

When I moved into an independent/assisted living facility, my aim was to be able to transition from one to another, since I was living alone.  My financial advisor used the money from the sale of my home to put into an annuity.  The interest I earn goes from that into a fund to pay if I should need to move to assisted living.  I pay tax on this interest every year on the amount that goes to this fund.  If i pass away and do not need assisted living , the annuity stays and goes to my beneficiary or whatever amount is left if I did move to assisted living. Basically it's a win-win for me as I know I could not afford to buy long term insurance at my age.

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Re: Long Term Care insurance policies cost

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Message 17 of 24

Just read an excellent article on long term health care.Here is link,if allowed by AARP.

 

https://investorresources.weissratings.com/not-properly-preparing-for-the-exorbitant-cost-of-long-te...

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Re: Long Term Care insurance policies cost

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Message 18 of 24

The question of whether the pricing is "standard" can't be answered without knowing the benefit level.

 

Our LT policy increases benefits at a compounding rate annually.  We had the choice of a simple interest increase but decided to pay more for the policy to take a compounding rate.  The premiums have also increased over time.  For years they remained the same but when the insurer changed hands, the new owners quickly set about boosting rates.  They're now more than 50% higher than when the policy was initiated.  

 

The policy gives us a "pool" of money shared between me and spouse.  Either or both can benefit until the funds top out.  

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Re: Long Term Care insurance policies cost

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Message 19 of 24

I am 66 and she is 63.  We have a 5 year payout policy, right now about 8000 a month (each - compounding at 3% for the next few years, until they jack up the price again).

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Re: Long Term Care insurance policies cost

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Message 20 of 24

Not knowing what benefits he has in his policy (e.g. cost of living adjustments, home care and facility care, term of benefits, daily benefit etc), $1200 annually seems reasonable.

The insurance companies have terribly underpriced long term care and many have lost money and no longer offer the policies.  Those that do continue to offer coverage need to increase their prices to avoid losses. For anyone who has not purchased, if you find a company that provides a fixed price (sometimes offered if you pay all of the premiums at once or agree to 10 fixed annual payments), then you avoid the cost increases.

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