Are you as smart as a high-tech car? Take this quiz and test your knowledge.
Reply
Bronze Conversationalist
0
Kudos
973
Views

Re: Long Term Care insurance policies cost

973 Views
Message 1 of 24

Spot the deliberate mistake?

 

"Turning Tax-Deferred into Tax-Free"

 

No way!  Someone has to pay the taxes on this!  In this case, it's the insurance company (and, ultimately, of course YOU).  They accomplish this with burdensome early withdrawal penalties.  Remember, they are in this business to make a profit, and they will, with the smoke and mirrors of annuity contracts.

 

Beware before you dive into something like this.

Report Inappropriate Content
0
Kudos
973
Views
Silver Conversationalist
0
Kudos
2932
Views

Re: Long Term Care insurance policies cost

2,932 Views
Message 2 of 24

yes--premium increase are common and regular with LTC. There is nothing that you can do about it.  Switching to another company will be the same problem AND will probably increase your cost right off the bat as you are 3 years older. 

It's insurance which means that you may exercise and eat right and for you, there are 6 obese people who could care less how much they will cost YOU by their irresponsibility.

Report Inappropriate Content
0
Kudos
2932
Views
Info Seeker
0
Kudos
4711
Views

Re: Long Term Care insurance policies cost

4,711 Views
Message 3 of 24

Hello,

I am interested in which LTC insurance you currently have. I like the benefits that you detail.Thank you.

Report Inappropriate Content
0
Kudos
4711
Views
Conversationalist
1
Kudos
6428
Views

Re: Long Term Care insurance policies cost

6,428 Views
Message 4 of 24

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 

Report Inappropriate Content
1
Kudos
6428
Views
Conversationalist
0
Kudos
6428
Views

Re: Long Term Care insurance policies cost

6,428 Views
Message 5 of 24

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 

Report Inappropriate Content
0
Kudos
6428
Views
Info Seeker
0
Kudos
6447
Views

Re: Long Term Care insurance policies cost

6,447 Views
Message 6 of 24
I would be leery. Sounds too good to be true.
Report Inappropriate Content
0
Kudos
6447
Views
Info Seeker
0
Kudos
6717
Views

Re: Long Term Care insurance policies cost

6,717 Views
Message 7 of 24

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?

Report Inappropriate Content
Tags (1)
0
Kudos
6717
Views
Conversationalist
1
Kudos
6819
Views

Re: Long Term Care insurance policies cost

6,819 Views
Message 8 of 24

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.  .  

Report Inappropriate Content
1
Kudos
6819
Views
Info Seeker
1
Kudos
6898
Views

Re: Long Term Care insurance policies cost

6,898 Views
Message 9 of 24

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.

Report Inappropriate Content
1
Kudos
6898
Views
Conversationalist
1
Kudos
7239
Views

Re: Long Term Care insurance policies cost

7,239 Views
Message 10 of 24

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.

Report Inappropriate Content
1
Kudos
7239
Views