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We have LTC that pays &3600 month. I am ckg costs of places. Amazing Seattle base cost $6350 w $5000community or mom in fee. 2 hrs away same company 4700 base & s1500 community fee. Palm Springs area $2750 base &$2000 move in fee. Then add the level of care to that. You may need to move to another state for a few years to afford care before it kills the caregiver. I am reminded that I need to ck w our LTC that the facility matches LTC . requirments. Some policies cover Board & Care homes or called also Family Residence which has 6 persons vs 50. Policies have chg since 90's when we purchased never knowing my husband would get Alzheimer's.
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LTC insurance is one option. A Lifecare or what they used to call CCRC (continuing care retirement community, is another. Fee for service retirement community, third option, and CCAH (continuing care at home is a fourth option. All based on your age and unique financial and health status. Plan before you need assistance in ADL.
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LTC insurance is like a gamble on a gamble. First you are gambling that you will need it before you pass on. Secondly you are gambling that you will need it at all since you may die of natural causes from age. The short answer is it depends.
Sort of like the question of whether to collect social security at 62 or 66 or 67. It depends. I will admit the LTC question is more complex and I doubt if anyone has the answer without the caveat being added that it is a gamble. So the question might be "Are you felling lucky" I didn't buy it. Will I regret it. "It depends".
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We are thinking about an equity life policy. By the time we reach that point it should have enough equity to cover expenses if we cash out, but if it doesn't get used the funds go to our children.
Just a thought.
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My mother has it and it has been very helpful but I have to say that if it were not for my husband and I advocating on her behalf the situation might have been different. My mother has also spent years alone as a single woman. One can be put through the wringer in terms of all the steps they require to begin payment. Then one is again put through the process with the frequency of evaluations. All during these times payment is halted. I can't imagine how she would have coped with it were it not for all the steps we take. We are diligent with the AL facilities and have been fortunate that the 2 she has been in have the process down. It still requires alot of follow up when notices are sent that if material they request is not sent by a certain date the claim will expire. It is stressful. I also learned that the policy my mother bought years ago is no longer sold because it is too advantageous. It has made me not want to consider buying it but then I also live a more careful life than my mother and am entering retirement with a spouse. I just know that if I were to have it I would be overly concerned that my children were following all the necessary steps in order to seek reimbursement.
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Upstream Feb 2019
Yes, I have been handling LTC claim for my dad for two years now. In fact, I just received the annual packet of information to have filled out regarding his needs and plan of care.

If you have an LTC policy, it is most likely that at the time you need it, YOU WILL NOT BE ABLE TO HANDLE THE PAPERWORK AND LEGWORK TO FILE THE CLAIM. Therefore, you must have someone that will be there fore you TO FILE THE CLAIM for you. Otherwise I would say the policy is worthless.

There is extensive initial paperwork, including visiting doctor(s) to sign-off on things, there is monthly paperwork, and there is annual paperwork to continue the claim. I am lucky that my dad purchased a policy when they were spectacular and the policy has paid out as promised. It's my understanding you cannot buy a policy like this one anymore.
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Maybe this was said somewhere before, but I'll that although we see statistics saying "a large percentage of people" will require long-term care. However, what ISN'T said is that some of these people may only need it for a few months or less, so the insurance may end up costing 6 figures to cover an expense that is in the low 5 figures.
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If by "worth it" you mean, will it pay out more than you put into it? Well, obviously, not for everybody! Just like any other insurance you pay for. Like car insurance. If you never get in a wreck, was it a waste of money? No! Fire insurance? Is it a waste of money if your house doesn't catch fire? Of course not. Insurance is for DISASTERS. My hubby has had round the clock care for over eight years now because of his dementia, and increasing physical disability. We had decided years ago that we didn't need to buy long term care insurance--we thought we could "self-insure". I can bear the cost of his care for quite some time, still, but we are not so well off that I could bear the cost of a similar situation for myself. That's why I bought a policy. Same reason I have flood insurance even though I don't live in a flood area. I don't expect to recoup the premiums for any of these.
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Yes, set aside $$$$$$$$ for your elder selves. Who will if you don't, POTUS?
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anonymous434963 Dec 2018
I think the question is not about whether to set aside money for our older years, but rather whether LTC insurance is a good way to do so.
In fact, to "set aside" money would seem to imply not spending it on insurance.
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Agingmyself: There are differing ways to do Long Term Care Insurance. My husband and I have put LTC into our investment portfolios. So "setting aside funds" does make sense if you're building on it. Btw, I did understand the OP.
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anonymous434963 Dec 2018
We have considered LTC policies. I'd be interested in knowing what you've decided on. The offerings we considered just didn't appeal to us; BUT, I am not eager to bet on my own misfortune, so to speak, which is what insurance is, imo.
The best LTC policy that we looked at a year or two ago included a partial return of premium if it went unused or kinda like life insurance. Even so, we decided against it.
The only direct experience I've had with LTC insurance was a family member who became a quadriplegic. He collected an amount about equal to what they had paid in over the years. Now, it's a lot more expensive than what they paid in premiums.
I do think insurance is important for many people--young families, especially, for example. But it needs to be based on your individual means and needs.
So, what made you decide to do it, specifically?
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I don't think it is frankly. Our law firm offered for only one year a policy, you had to pay premiums. After one year, they decided no. Too many companies go under because they underestimated the number and costs associated with. And the premiums rise continually.
Many struggle to pay the increase because of a sunk cost. I already have this much invested. There are many who will disagree. But when you 30 tax and insurance attorneys say nah, I think one is wise to heed that.

If you are determined do,look into when they start paying. Under what criteria? How many facilities accept LTC pay, because many no,longer do so.

Read the fine print. Ask around who takes payment. From which companies. Why not yours.
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I looked into this some time ago. It is VERY expensive and more as you get older. There are pro's and con's, as with everything. Whatever you do, research and research and research some more. I have heard horror stories where so often money that was anticipated was never paid out. Others said it saved them so it is a very personal issue. If possible enlist the services of a specialist who is very, very familiar with how all this works and with the different companies and types. I assure you, and I am extremely business oriented and highly intelligent, the money in this case what you would pay vs. what you reap is worth the services of a professional to advise you. Be careful before you choose the yes/no answer. And if you do run out of money, there is Medicaid.
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If you have a lot of assets, then LTC is the best way to go.
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jacobsonbob Feb 2019
If you have enough assets, then you don't really need it. Your money could be working harder for you during the intervening years and growing more than what the insurance premium would save you. The insurance companies preach about what percentages of people need long term care, but what they don't mention is that some people end up in long term care for only a relatively short time before they die. My father was in a nursing home less than a year, and some are there for a matter of weeks.
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Mother and dad bought this back in the 80's. $100-$200 a day "extra" seemed like a fortune.

Guess what?

Its wasn't and it isn't. If mother were to use hers now, she would get about $75 a day added to her SS, That won't make a hill of beans difference. As they had added a codicil to include in home CG's, it could have been used all these years we kids (well, 2 of the 5) could have been helped along. As it is, I don't think she'll ever recoup a cent. Dad thought he was saving us kids the trial of having a difficult patient in mother, and he was right.

YB who is her self appointed primary CH will NOT ALLOW outside help of any kind.

DH and I have just been saving like crazy so we will not be burdens to our kids. That;s probably the best LTC insurance.
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