Dementia/ Alzheimer’s is on the rise. My dentist just retired with it. Good friend of ours just got diagnosed. My mom has Alzheimer’s it wasn’t bad in the beginning. She has been with me 7 years she just turned 67. She got it at the age of 55. It’s very hard we can’t go anywhere do anything. She is a whole different person. I have young children she is violent, comes out naked. Can’t make her own food, shower ect… I found a long term care facility but they want 9k a month to take care of her. I wish she had long term care insurance. Now I don’t know what to do. I am just learning about all this. It’s important to protect yourself you don’t know what the future looks like.
As a CFP the best option to do if you are below the age of 50 is to self fund. I put in 135K into an account just for long term care. I bought QQQ and SPY. In 32 years when I am 75, i will have 2.6M-3.4M averaging 10% reinvesting dividends. At that point, that is the same benefit the LTC insurance wanted to give me. 30K a month for 6 years, which is 2.1M, which is what I will have after long term cap gains rate. However, the benefit is, i don’t have to prove, qualify, be in USA, meet certain criteria and I instead of burning through the capital, can transition that account to high income to fund the long term care need and still retain most of the principal after I utilize it to leave to my beneficiary. Makes more sense.
I bought it at the age of 54, and after 20 years they sent me a letter raising my premiums each year for the next 4 years with it ending up 3x my current premium. I am on a fixed income and can't afford that. I was offered the option to change to a paid up plan. I will only be able to receive in benefits the exact amount that I have paid in, $3750.00! I should've just bought gold each year with the amount of the premium and it would have given me a greater retirement no matter what happens to me!
This happened to my friend also. After paying 20? Years the insurance company kept raising his premiums . And in his case he had an aneurism and died within a week.
I just don't trust the insurance companies. I might pay for 20 years, and at the end when I need the benefit, they might say ... "Oh, we don't cover that." Or, they say, "We only cover 50%."
It is crazy to me to know that one could be diligent and still go bankrupt at the end of their life due to medical expenses. I'm neither a Democrat nor a Republican but I would rather have my tax dollars subsidize universal healthcare than many of the other wasteful programs we have in this country.
Isn't that the purpose of Medicare that you get at 65? Taxes are higher in Canada, but its more common that you die while waiting for your appointment or (if rich) fly to a foreign country for procedures not covered. But, I get it, I'm watching since I am making plans.
My understanding is that even if you get Long Term Care Insurance it only covers 1 or 2 years of your nursing care. It doesn’t last for several years. In other words it’s very limited.
It is $10k-$15k per month and up... Your money runs out quick. People are expected to live 10 years in assisted living of some sort. We're all screwed.
I'm retired and single with a retirement budget of about $8,500/month. Even assuming long-term care cost $10,000/month, I don't think it would be worth paying the insurance because if I'm on such care, my life expectancy has probably declined so my assets can probably still cover the costs. Also, my heirs have no guarantee that they will receive anything when I die, so my entire estate is available to cover these costs.
Many people die during the 100 day elimination period. And your symptoms have got to already be pretty bad just have them agree you need the care.... You can't just declare yourself needing care... or that you are READY for LTC. They examine you and judge if you can start the care... after 100 days.... and then evaluate you again every 4 months... Self insure. Drop $10k/yr in TIPS, which you can use as your safe bucket for finances too.
I read it is like pulling teeth to get these insurance companies to pay up. If you don't have an advocate to jump through all the hoops you won't get anything. Also, they can raise your premiums to the point you can't afford it and there goes all your premiums down the drain. The company can also go bankrupt. It does no good to buy the insurance from a reputable insurance company that has been around for a long time because they could end up selling your policy to ACME Insurance company and they could go belly up. Just too many risks for me. Especially since it is so expensive.
Dealing with my mother at 79 with cgnitive decline + her catastrophic financial decisions that she made without my + my sister's knowledge that spanned 3 decades after my father divorced her, and now dealing with a very low, fixed income with assets less than 250K ,+ dealing with elder care lawyers + trust creation trying to "slow the burn" of the rest of her money (she is now living in assisted living with memory care) though she is normal as in she doesn't need help with ADLs, she could live years with memory decline + she will outlive her money + be forced to state run Medicaid facility within probably next 3 to 5 years, (she cancelled her long term care insurance policy that we didn't know she had, "to cut expenses". Yep. My sister + I this past year have been thru hell getting my mother moved back to CT from FL where she lived alone for past 20 years....IM GETTING LONG TERM CARE INSURANCE. My mom has survived 2 cancers, 8 surgeries+ 40 near death bowel obstructions....all to now having cognitive impairment decline....you don't want to watch this financial train wreck! Though we r on track (my husband + I) to retire in about 10 /12years( around age 59/62. We don't think we can hit the 4 million mark where we feel confident to self insure. Everything at assisted living is a la carte...base room + board in CT starts in the 5 to 7 k range, and if u need memory care, help with ADLs with skilled nursing or medication management, it's all extra! Plan for 10/15 K a month for "full service" if one needs it. We will use annuties + LTC hybrid policies to help bridge the gap....living this nightmare with my mom who is blissfully unaware of what is coming (and we don't have the ability to pay it for her) you have to look at family history + risk factors......my saying is it's better to have it + not need it, then need it and not have it.
I agree! Currently deciding this for my mom that is showing cognitive decline and refusing to move back to CT from FL. I understand why elderly people come to Florida but it puts your loved ones through hell when you are here by yourself and didn’t properly set your life up! I hope you and your family is managing
Dementia/ Alzheimer’s is on the rise. My dentist just retired with it. Good friend of ours just got diagnosed. My mom has Alzheimer’s it wasn’t bad in the beginning. She has been with me 7 years she just turned 67. She got it at the age of 55. It’s very hard we can’t go anywhere do anything. She is a whole different person. I have young children she is violent, comes out naked. Can’t make her own food, shower ect… I found a long term care facility but they want 9k a month to take care of her. I wish she had long term care insurance. Now I don’t know what to do. I am just learning about all this. It’s important to protect yourself you don’t know what the future looks like.
As a CFP the best option to do if you are below the age of 50 is to self fund. I put in 135K into an account just for long term care. I bought QQQ and SPY. In 32 years when I am 75, i will have 2.6M-3.4M averaging 10% reinvesting dividends. At that point, that is the same benefit the LTC insurance wanted to give me. 30K a month for 6 years, which is 2.1M, which is what I will have after long term cap gains rate. However, the benefit is, i don’t have to prove, qualify, be in USA, meet certain criteria and I instead of burning through the capital, can transition that account to high income to fund the long term care need and still retain most of the principal after I utilize it to leave to my beneficiary. Makes more sense.
I bought it at the age of 54, and after 20 years they sent me a letter raising my premiums each year for the next 4 years with it ending up 3x my current premium. I am on a fixed income and can't afford that. I was offered the option to change to a paid up plan. I will only be able to receive in benefits the exact amount that I have paid in, $3750.00! I should've just bought gold each year with the amount of the premium and it would have given me a greater retirement no matter what happens to me!
This happened to my friend also. After paying 20? Years the insurance company kept raising his premiums . And in his case he had an aneurism and died within a week.
This is the best 6-minute encapsulation of the long-term care dilemma that I've seen. Thanks!
I just don't trust the insurance companies. I might pay for 20 years, and at the end when I need the benefit, they might say ... "Oh, we don't cover that." Or, they say, "We only cover 50%."
Avg premium $3,600 per year, if purchased at age 50 and not used for 40 years
, invested at 6% for 40 years would yield almost $600,000
It is crazy to me to know that one could be diligent and still go bankrupt at the end of their life due to medical expenses. I'm neither a Democrat nor a Republican but I would rather have my tax dollars subsidize universal healthcare than many of the other wasteful programs we have in this country.
Isn't that the purpose of Medicare that you get at 65? Taxes are higher in Canada, but its more common that you die while waiting for your appointment or (if rich) fly to a foreign country for procedures not covered. But, I get it, I'm watching since I am making plans.
My country has universal health care but you still have to pay for long term care
Since we are quoting country music. The gambler said "the best you can hope for is to die in your sleep". It's the truth.
My understanding is that even if you get Long Term Care Insurance it only covers 1 or 2 years of your nursing care. It doesn’t last for several years. In other words it’s very limited.
Thank you for this straightforward answer.
It is $10k-$15k per month and up... Your money runs out quick. People are expected to live 10 years in assisted living of some sort. We're all screwed.
Here in WA State. They forced us to get it. Either through the state or a 3rd party…. We lose it if we move out of state. Bleh
@Brandon Busby same!
Yeah, Washington State is just jacked with the LTC rules. I bought our own and plan to cancel in another year or so. I hate insurance companies.
I'm retired and single with a retirement budget of about $8,500/month. Even assuming long-term care cost $10,000/month, I don't think it would be worth paying the insurance because if I'm on such care, my life expectancy has probably declined so my assets can probably still cover the costs. Also, my heirs have no guarantee that they will receive anything when I die, so my entire estate is available to cover these costs.
😊
I II😅@@leahj9564
Is it safe to think about a fully funded and invested HSA as a form of long term care insurance? Just with more flexibility.
Certain investments at a X actually do this for people, not easy to find but exist & potential even while in care
Many people die during the 100 day elimination period. And your symptoms have got to already be pretty bad just have them agree you need the care.... You can't just declare yourself needing care... or that you are READY for LTC. They examine you and judge if you can start the care... after 100 days.... and then evaluate you again every 4 months...
Self insure. Drop $10k/yr in TIPS, which you can use as your safe bucket for finances too.
I read it is like pulling teeth to get these insurance companies to pay up. If you don't have an advocate to jump through all the hoops you won't get anything. Also, they can raise your premiums to the point you can't afford it and there goes all your premiums down the drain. The company can also go bankrupt. It does no good to buy the insurance from a reputable insurance company that has been around for a long time because they could end up selling your policy to ACME Insurance company and they could go belly up. Just too many risks for me. Especially since it is so expensive.
As someone who had a partner with early onset dementia, it sure can save a lot if you can't afford to self insure
Long term care insurance is very limited short term care(months?). It's not life time care.
yup, the more that you pay the longer that it will last. Standard is about 4 years.
When someone uses the doughnut-hole explanation, I become very very leery. I suspect he does not want to offend his friends.
Dealing with my mother at 79 with cgnitive decline + her catastrophic financial decisions that she made without my + my sister's knowledge that spanned 3 decades after my father divorced her, and now dealing with a very low, fixed income with assets less than 250K ,+ dealing with elder care lawyers + trust creation trying to "slow the burn" of the rest of her money (she is now living in assisted living with memory care) though she is normal as in she doesn't need help with ADLs, she could live years with memory decline + she will outlive her money + be forced to state run Medicaid facility within probably next 3 to 5 years, (she cancelled her long term care insurance policy that we didn't know she had, "to cut expenses". Yep. My sister + I this past year have been thru hell getting my mother moved back to CT from FL where she lived alone for past 20 years....IM GETTING LONG TERM CARE INSURANCE. My mom has survived 2 cancers, 8 surgeries+ 40 near death bowel obstructions....all to now having cognitive impairment decline....you don't want to watch this financial train wreck! Though we r on track (my husband + I) to retire in about 10 /12years( around age 59/62. We don't think we can hit the 4 million mark where we feel confident to self insure. Everything at assisted living is a la carte...base room + board in CT starts in the 5 to 7 k range, and if u need memory care, help with ADLs with skilled nursing or medication management, it's all extra! Plan for 10/15 K a month for "full service" if one needs it. We will use annuties + LTC hybrid policies to help bridge the gap....living this nightmare with my mom who is blissfully unaware of what is coming (and we don't have the ability to pay it for her) you have to look at family history + risk factors......my saying is it's better to have it + not need it, then need it and not have it.
and to add insult, is the more likely that you need it when you get old (or have medical history), the more expensive it will be.
Thank you that post is experience I need to help decide on a policy in the next few months . I will be check many sources on cost and services .
I agree! Currently deciding this for my mom that is showing cognitive decline and refusing to move back to CT from FL. I understand why elderly people come to Florida but it puts your loved ones through hell when you are here by yourself and didn’t properly set your life up! I hope you and your family is managing