One of the first things you learn when you start researching Long Term Care Insurance is that you were supposed to sign up in your 40s and 50s. We're well beyond that. Art has always felt that we should just save up for it (self-insure) because:
1. The premiums are pretty expensive.
2. The rates do go up.
3. There's usually a time limit for how long it covers.
4. Sometimes there's a cap on how much you can receive.
5. There's also limitations on what it covers.
6. If you don't need it, you lose what you put into it. It's like term insurance.
For all these reasons we weren't sure we needed to learn more about it. However, we've become friends with Calvin Taketa (calvintaketa@rocketmail.com) who is a wonderful, low-key, no-pressure type fellow that we met at Tai-Chi. He also happens to be a financial planner. We told him upfront that we don't like to mix business with friendships/relatives. We've been burned before.
However, we treated Calvin to lunch and enjoyed picking his brain for everything he knew. Calvin is really an expert on a lot of different LTC insurance plans. And by golly! We did learn quite a bit from him.
1. The premiums are based on your age, length of stay, etc. You can tell Cal what you want and he can find the plan that would best fit your budget and needs.
2. I'd already learned that you might be able to get discounts for being married, be in good health, etc.
3. We pay exorbitant amounts for hurricane insurance and hope we don't need to use it. LTC is something we hope we don't need to use too. I never looked at it that way.
4. Full care nursing home prices are climbing and astronomical in Hawaii ranging from $8,000. to $12,000. a month. Sheesh!
5. There are plans where you turn in receipts and they pay them or they pay you a lump sum up front for care of a loved one.
6. It's probably a good idea to dedicate 1% of your income a year to LTC to protect 99% of your estate.
7. You have to make sure the company you pick is stable and will be around when you need to collect.
I asked what the premiums would cost. He said he didn't know yet until he figured it out because so many factors come into play. For one thing, Art was happy to know that Cal thought he was a lot younger. On the other hand, being older makes the premiums higher. I asked Cal what the range might be. He said it could go from $1,000. a year to $5,000. depending...
We haven't totally decided yet what we want to do. Perhaps we'll get it for just one person. There's so much to think about and research. Cal says many people get hit with "Analysis Paralysis." I can well imagine.
Well... much as we don't like doing business with friends, I'm glad we're learning from Cal. Besides, if we get too stressed out, there's always Tai-Chi.
1. The premiums are pretty expensive.
2. The rates do go up.
3. There's usually a time limit for how long it covers.
4. Sometimes there's a cap on how much you can receive.
5. There's also limitations on what it covers.
6. If you don't need it, you lose what you put into it. It's like term insurance.
For all these reasons we weren't sure we needed to learn more about it. However, we've become friends with Calvin Taketa (calvintaketa@rocketmail.com) who is a wonderful, low-key, no-pressure type fellow that we met at Tai-Chi. He also happens to be a financial planner. We told him upfront that we don't like to mix business with friendships/relatives. We've been burned before.
However, we treated Calvin to lunch and enjoyed picking his brain for everything he knew. Calvin is really an expert on a lot of different LTC insurance plans. And by golly! We did learn quite a bit from him.
2. I'd already learned that you might be able to get discounts for being married, be in good health, etc.
3. We pay exorbitant amounts for hurricane insurance and hope we don't need to use it. LTC is something we hope we don't need to use too. I never looked at it that way.
4. Full care nursing home prices are climbing and astronomical in Hawaii ranging from $8,000. to $12,000. a month. Sheesh!
5. There are plans where you turn in receipts and they pay them or they pay you a lump sum up front for care of a loved one.
6. It's probably a good idea to dedicate 1% of your income a year to LTC to protect 99% of your estate.
7. You have to make sure the company you pick is stable and will be around when you need to collect.
I asked what the premiums would cost. He said he didn't know yet until he figured it out because so many factors come into play. For one thing, Art was happy to know that Cal thought he was a lot younger. On the other hand, being older makes the premiums higher. I asked Cal what the range might be. He said it could go from $1,000. a year to $5,000. depending...
We haven't totally decided yet what we want to do. Perhaps we'll get it for just one person. There's so much to think about and research. Cal says many people get hit with "Analysis Paralysis." I can well imagine.
Well... much as we don't like doing business with friends, I'm glad we're learning from Cal. Besides, if we get too stressed out, there's always Tai-Chi.
Long term care in UK is a very tangled web and extremely expensive. Insurance sounds like a good idea - I'm sure it will have to happen here before long since local councils are finding it difficult to meet the bills, though they are legally required to.
ReplyDeleteWe enrolled in long-term care insurance about 25 years ago. You're right, it's expensive. But peace of mind is often expensive, I guess.
ReplyDelete"7. You have to make sure the company you pick is stable and will be around when you need to collect."
ReplyDeleteWith so many baby boomers retiring and having health issues, will these companies go out of business when they become overwhelmed? If that happens, you are screwed. That's my chief worry about LTC.
my blog today is Sometimes it stinks to get old, and it does, health care and safe living for the elederly should be a top priority,, its a crime its so expensive, prisoners in jail are sometimes treated better.We have insurance, hope we don't need it but its there, unless the company goes kaput!
ReplyDeleteEven the lower amount ($1000) seems like a lot to pay. Most developed countries have programs in place to take care of the elderly. I don't plan to live to be an old, old woman anyway... nobody in my family has made it much past ninety. Nursing homes scare me!
ReplyDeletethere is much to think about as you get up there in years...financial security is so important...having a will, etc. Lately i've been thinking about funeral plans. My mom had one prepaid and that was really helpful.
ReplyDeleteWe got LTCI about 5 years ago, right after Mom died and we dealt with all that garbage. Makes me mad though as mine is more because I am considered obese from the "CHARTS" but am in great health with BP and all blood work, yet The Hubby gets the cheaper costs because he is in the lower weight thing, yet his health is a bit iffier, high cholesterol, tyiglycerides, etc. Not really fair I say but you can't fight it. Good luck.
ReplyDeletevery interesting topic Kay, I've always thought it was prohibitively expensive but a lot of what you said makes sense...hmmm. You may be able to do it on your own with savings. And I don't get how you could just get it for one person as you don't know which person?
ReplyDeleteBe careful Kay -- the premiums are expensive no matter what age. Paying for in-home care can go a long ways. DrumMajor
ReplyDeleteGood info. It's one of those things that is hard to decide. I guess you have to weigh the differences and hope you pick the best option.
ReplyDeleteI don't have much of an estate, but i do have 2 LTC policies i took out in the 80s and 90s. I'm an ant kind of person. I may never need them, but that's okay too. Insurance is a community thing. Dianne
ReplyDeleteSince you are a retired teacher, have you checked with the agency that pays your retirement income. The California State Teachers Retirement system has some great long term care packages, at fairly reasonable rates for retired teachers. Also, isn't your husband a veteran? I gather that from the comments you make about your medical care. The military has some plans, too, through some of their Veteran's Homes. Another option to analyze and become even more paralyzed!
ReplyDeleteLong term care is an important discussion to have. I really wanted to buy a policy about a year before I retired and found a reputable company. I knew it would be somewhat expensive, but doable.
ReplyDeleteMy husband and my son said I was better off to just save the money for such a need. Invest the money myself was the advice.
I was approved for the LTC medically. I decided against taking it. Then my health went downhill. I regret my decision. I could never get approved now, but I wish I would have taken it out when I could have done so. That is just my perspective.
this reminds me that my hubby needs to get this while he is still healthy..I wouldn't be able to get it at all...
ReplyDeleteOh my, it's such a gamble. If only we could see into the future.
ReplyDeleteBlessings.....Hope you and Art are well.
ReplyDeleteLong Term Care Insurance: This is a vert great topic and scary too. There is just so much to learn and truly understand.
I agree with gigi 100%, which is why we never got serious about getting one. Especially after the financial collapse in 2008 (and we're not out of the woods yet), I'm not sure which companies would be left standing. Furthermore, many institutions are having a difficult time earning their 8% assumptions. This is going to cause some turmoil in the insurance and pension industry (higher contribution for all?) Also, by keeping long rates low as the Feds are doing, that is also not bringing the returns on even relatively safe investments for the institutions, and the fact that soon there will not be many safe triple A opportunities. I'd like this to blow over before I risk more than our term life insurance money to insurance companies. Life insurance has some state regulated guarantees, but when it blows over I'm not sure if any government insurance will mean much.
ReplyDeleteL. from W.
We've gotten information about Long Term Care insurance from a couple of different agents, but buying a policy has never made it to the top of our things to do.
ReplyDeleteI have been living in Analysis Paralysis which has an address right next to Denial. I keep hoping I will just blink out someday in my own home.
ReplyDeleteKay, thank you for posting this. This is Cal and it was great breaking bread and discussing this topic and travel stories.
ReplyDeleteReccomend going to a couple of planners who are looking out for your interest. Consider requesting quotes from various carriers and ask for an "Outline of Coverage" or "Description of Benefits" in place of a shiny brochure.
I believe that affordability, suitability and carrier strength be hallmarks when sorting through options. The oft mentioned phrase in the industry is that do not purchase LTC insurance with money but with good health. If your health fails it may be too late to purchase insurance at any price.
There is care for the elderly if they can't pay, but first you have to divest yourself of all of your assets, and then become a ward of the state. That's OK if that's all you can afford, and you don't care about leaving an estate. It does mean that everyone else pays for you.
ReplyDeleteWe weren't sure what to do either, but about ten years ago we signed up for a middle of the road plan that would pay about $150 a day for care. It costs us about $1000 a year each.
There are all kinds of provisions, such as the insured must be hospitalized for three days before it kicks in. It's easy for insurers to get away with not paying. But most docs know how to work around that now and help you get what you need.
As with everything, you have to be your own advocate, or have someone else be one for you.
can be had for a thousand to 5 thou per year? tell me more as you find out, Kay
ReplyDeleteWarm Aloha from Waikiki
Comfort Spiral
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I know I'm paying over $5000 a month for my mother and this has been going on for 5 years this summer. Money doesn't last forever. My parents never wanted to get long term care insurance. I think they should've. How can you do for one? What if you pick the wrong one?? I wouldn't think it would transfer, but I don't know.
ReplyDeleteLucky's Favorite: Hi Cal! Thank you for all your wonderful information! I know this is something we do have to review again and make a decision soon.
ReplyDeleteYour system is so different from ours!
ReplyDeleteWe all pay a share and share equally in services.
I visit my local long-term care weekly to volunteer.
We did valentine crafts the other day.
Cheers from Cottage Country!
Jenn: I'm so jealous of you guys up north. Not only do you have the nicest people over there, but a much better health care system. Sighhhhh...
ReplyDeleteJoyce's Journey: This was just one of the things we thought of doing. We were figuring that we have enough money saved to self insure for one person. Therefore, we thought we'd insure just one person. We'll see what kind of plans Cal comes up with and see what we want to do if anything. I don't know right now.
ReplyDelete