Another reason to stay healthy and not go into long-term care. As you get older and sicker, premiums skyrocket and that affordable insurance quickly becomes unaffordable right when you need it.
- The need for extended long-term care is a possibility retirees need to plan for.
- Many turn to long-term care insurance policies, believing those will remove the risk.
- However, some buyers are finding out that they aren’t getting what they thought they were.
http://seekingalpha.com/article/4748732-the-long-term-care-insurance-debacle-premiums-increase-as-much-as-271-percent
As we age, one of the things we need to consider is healthcare. It becomes more likely that we might face significant health issues, and the costs can become huge. Many people turn to long-term care insurance in an attempt to protect themselves. Unfortunately, sometimes these products don’t provide the protection the buyer might believe they are buying.
6 Likes
That really would tend to be how things work out. Because having a care requirement is a high probability event it is really something to plan and invest for rather than establish an insurance scheme.
2 Likes
Jay
#3
My primary plan has always been “Don’t Get Sick!” However, a long-term ailment could happen. Strokes have been devastating for some people I know. Others I know who suffered heart attacks may have suffered less because of a less direct impact on the brain and, in one case, immediate death after the heart attack. I know other things may bring a need for long-term care, but I point out what I’ve seen that could possibly lead to a need.
I simply avoided the Long Term Care Industry because it did not fit my parameters of fairness. I investigated the Long Term Care policies available many, many years ago and re-investigated several times over the years. It’s a murky industry where you have to meet sometimes unclear criteria to get care. Your policies can go up and become out of reach as you grow older. And, what if the insurance company goes out of business? Would that be a problem? My solution decades ago was to learn how to invest for any future need for long-term care I might have. Then, instead of putting money into policy payments invest it. It was risky, but it was a lot less confusing than trying to figure out insurance policies. And, I (as long as mentally and physically capable) control the money, not a middle man trying to limit payouts.
2 Likes
My mom was in long-term care for 12 years before she passed away. She had a really great policy - she bought it in the 1990s and she got her premiums back many times over. I don’t think you can get those types of policies any more.
As I was managing her finances, I was very aware of what the LTC facility charged for what level of care. I concluded that the thing you really, really want to avoid is dementia. “Memory care” cost 3x as much as the type of care my mom received (her mind was fine but she needed help with bathing, dressing, feeding, etc.). It was something like $10k a month for memory care where she was, I’m sure it’s more than that now. The dementia patients could easily live a very long time at the highly expensive monthly rate if they were otherwise healthy. It’s an awful situation for the families.
We already know we want to avoid dementia, and this is just another good reason to do so.
3 Likes
