Does anyone know about long term care insurance?

[wryter2000]

Is there even such a thing?

I have some money I want to leave to my church. I'm afraid if might get eaten up by long term care if I were to require it for any length of time I have excellent health insurance for my lifetime, but I don't think it covers long term care.

Thanks for any suggestions.

[LakeVermilion]

1. Depends on your age...

We purchased a policy in our 60's. It was a couple grand a year. It was a good value if we needed it then.

We are now in our 70's; an age when using the policy is more likely. The rates have skyrocketed, so we have had to limit the coverage to keep the policy in force.

I imagine that we will be forced to drop the policy in our 80's. A long term care policy is probably useful if an unexpected event occurs, but as you get older and health statistics work against you, your rates will be very high.

There is no free lunch.

[wryter2000]

2. I thought that might be the answer

Thanks

[keithbvadu2]

3. Do a Google search for it and add 'pitfalls/problems' or some such word.

The policies have been notorious for severe changes over time.

[wryter2000]

5. I would not have expected severe changes over time

That makes it pretty much pointless. You could only get significant help if you had some catastrophic event at a young age. Retirement is not usually a time when you can take on new expenses easily.

[CountAllVotes]

4. It was available to me 20+ years ago

I didn't take it as it cost a lot of money for the good plan.

Its a good thing I didn't do it as they went bankrupt.

There is now a class action lawsuit going and the people that paid into this pricey plan are out thousands and thousands of dollars with no recourse it seems.

That said, I'm glad I didn't opt to enroll as I'd be SOL right now.

Buyer beware!

[wryter2000]

6. Wow

How would you know to avoid a company?

[CountAllVotes]

7. It was well known

It was offered to State of California retirees!

My god!

Who woulda thunk?

[Auggie]

10. Exactly why I haven't bought it ...

possibly bankruptcy (not to mention premium increases and/or reduced care)

[El Supremo]

8. The big long term care insurance premium increases are mostly due...

to the fact that the companies were losing money due to skyrocketing care costs. Some (like mine) have quit issuing new policies. It may have evened out by now, but the premiums are very high. If you have no spouse or person who would be greatly burdened by the cost of your care then it might not be a good idea. There is always Medicaid when your money runs out.

[wryter2000]

9. Thanks

No one to be burdened here. Good advice

[Karadeniz]

11. My husband says mine is about $3k per year and his is a bit less. He says it's going up!

[PoindexterOglethorpe]

12. In 2022, when I was 64,

my financial advisor got me a long term care policy. I paid a lump sum, no recurring premiums. It has a life insurance value, somewhat more than that lump sum. If I need long term care, it could eventually pay out more than three times that lump sum, and there would still be a residual death benefit. I could even cash it in for what that lump sum was.

Buying a regular long term policy, where you are making payments, can be a huge problem as you age. I have the good fortune to have a financial guy who has done very well for me.

[wryter2000]

13. Wow

I wonder where you find that kind of insurance.

[PoindexterOglethorpe]

14. The policies on offer change over time.

That's what I got in 2012. I doubt that generous a policy is available these days. This is where having a good and knowledgeable financial advisor is crucial. I am very fortunate with mine, and I've been with him for twenty years or so. Fortunately, he truly loves his job and has no intention of retiring. He's with a small firm in Overland Park, KS, and they have contingency plans if something suddenly happens to any of the partners.