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Conversationalist

Re: Long Term Care insurance policies cost

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Message 1 of 21

petie111 wrote:
I would be leery. Sounds too good to be true.


As you describe it, sounds like an annuity plan. They are loaded with commission expense. And “up to” is a salesman term not at all a guarantee of anything. AARP and others including consumer reports have lots to say about these instruments. Mostly be cautious 

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Conversationalist

Re: Long Term Care insurance policies cost

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Message 2 of 21

As you describe it, sounds like an annuity plan. They are loaded with commission expense. And “up to” is a salesman term not at all a guarantee of anything. AARP and others including consumer reports have lots to say about these instruments. Mostly be cautious 

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Info Seeker

Re: Long Term Care insurance policies cost

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Message 3 of 21
I would be leery. Sounds too good to be true.
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Info Seeker

Re: Long Term Care insurance policies cost

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Message 4 of 21

We are currently examining a plan where we pay in a certain amount of our savings (say $50K) for each of us.  The insurer is offering a payout of up to 4x times what we put in ($200K).  The rules for what they will pay for, when, and up to how much, seem reasonable.  After 3 years, if we change our mind, we can get our $50K back (but no interest).  We think this will work for us, as we have substantial savings, and military and federal pensions (but no survivor benefit on those).  So we are looking for something to supplement what we have, and not bankrupt the person who isn't in the facility. 

 

Has anyone experience with a plan such as this?

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Conversationalist

Re: Long Term Care insurance policies cost

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Message 5 of 21

It's interesting that the benefit period was arbitrarily cut.  You would do well to consult your state insurance commission to see whether that is allowed.  Read the policy thoroughly for guidance also. When you started paying, you bought future benefits and cutting them means you are not getting what you paid for.  Rate increases are different - they are almost certainly spelled out in the contract. What it says is  that "we guarantee you that rates will never be raised unless they are raised for all policies in your category/class".  Sounds pretty good, like a no raise guarantee. So -- they simply raise all the rates in your category and the guarantee ain't much.  What you do get is protection that your individual policy won't be raised while others are not..which, again, ain't much.  .  

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Re: Long Term Care insurance policies cost

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Message 6 of 21

We have had a policy since 2000.  We locked it in for both of us at 140 a month.  I was 49 and my husband 59 both in good health.  Now our health has declined but we still have the policy.  They reduced the benefit from lifetime to 4 years and raised the price to 180 for both of us.  Otherwise the policy has remained the same.  At this point we need this and continue to pay as we would be underwritten with our health and age.  Lock it it early and don't let go.  Three of our 4 parents spent time in nursing homes so we know this can happen.

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Conversationalist

Re: Long Term Care insurance policies cost

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Message 7 of 21

I began LTC many yearsa go when it was offered at work.  I pay the full premiums, but since I started when I was younger, they ahve tsyaed within reason - about $1700/year at present.  I have some inflation protection and the coverage is roughly what the local costs are for full nursing care. Since my retirement is pretty well balanced and a good portion guaranteed, I feel confident that I won't go bankrupt or end up on Medicaid.  Given the cost of one month in even assisted living care, the premiums are well worth it.

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Valued Social Butterfly

Re: Long Term Care insurance policies cost

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Message 8 of 21

@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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Info Seeker

Re: Long Term Care insurance policies cost

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Message 9 of 21

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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Bronze Conversationalist

Re: Long Term Care insurance policies cost

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Message 10 of 21

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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