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Question-Long Term Care insurance

May 14th, 2015 at 01:41 pm

Hi all,

Been laying low. traumatized by this 'Dad situation'.

Dad is in assisted living and not liking it and all sorts of issues. We did get a contract on his house which he signed ..no close date yet.. house is in Wisconsin..but he is very confused and upset. I have a POA for finance but no access to his account. Girlfriend is leaving and sortof dumping everything on me. I am struggling to catch up and learn everything. Takes LOTS of time.. need to get handle on his accounts, assisted living, bills, house et..

Overwhelming and Dad and I were not close. Weird. not sure how to act or what to do.

Anyway. unfortunately makes me think of how life is so short. VERY SCARY seeing Dad like this. so looking into long term care insurance.

Rough quote $1770 a year with inflation protection for $4500 a month of care.. you pay that amount for life. That was a rough high level quote . may be less or more based on more factors but overall MUCH less than I had thought.

I had one major event. TIA (mini stroke) at 36-37 due to a PFO (opening in your heart that did not close after birth. they check for thsi in kids now but older folks find out when they have a TIA from it or die). anyway. they closed the PFO ... no residual effects, no meds. but that counts against me and if you have 2 you are uninsurable.

I have an indepth interview/webinar to get a clear quote etc then you need to apply and wait 6-8 weeks to be accepted.

What have other people done? They have less benefits than $4500 (w inflation adjustments) for less cost and most likely I will have the rentals.

Does this offset the need to save so much for retirement?

I AM REALLY freaked out and aware of how short life is w seeing Dad.

is dementia at 76 early? or normal?

REALLY feeling the need to retire early and figure things out w this pressure of not having enough time left..and seeing Dad deteriorate at 75

Rachael



6 Responses to “Question-Long Term Care insurance”

  1. laura/deacon's wife Says:


    I can offer nothing other than my grandmother (non-dementia, fairly healthy, 95) just went into assisted living and isn't liking it a bit. She's heading back to her home (quad unit) and my mom and uncle are looking into 24 hour-in home companionship. The price is the same for both ($4,500 in So Cal). We haven't considered LT care insurance, but I did suggest my in-laws look into it. My husband is an only child. We've got plenty of our own financial obligations (5, now moving toward 6 children). I fear their money won't go very far if/when the time comes ...

  2. AnotherReader Says:

    I would not even consider long term care insurance. Most reputable companies are getting out of the business because costs of care and inflation have made this business unprofitable. The old policies had excellent benefits. What you can get today is just not worth it. Better to save and invest the premiums.

    You will need someone you trust to manage your financial affairs should you end up in this situation. You do not want the court system or the County Public Guardian in charge of you and your money.

    There are a number of threads on early-retirement.org on the subject of long term care insurance.

    Dementia onset is variable. Sadly, 76 is not uncommon. For some reason men seem to get it earlier and deteriorate more rapidly, at least that's been my experience.

  3. MonkeyMama Says:

    I'd say that 76 is in the normal range. ((HUGS)))

    I would not buy LT Care Insurance at your age. It's cheap/affordable but it's not very useful. You may possibly need the insurance to come through in 50+ years, which is unlikely. (I had heard not to consider before 50? & even then would be on the young side).

    I consider myself a contrarian as I have generally heard from financial planners to ALWAYS buy LT Care Insurance at an appropriate age. No one in my family has been in assisted living for any length of time and there are several other factors why I don't find it to be necessary. Dementia is a bit of an epidemic in younger generations (younger than say my grandparents or great-grandparents) and family history may be a little rough to depend on as surely many people today are dealing with dementia though their parents did not. BUT, the average length of time in an assisted living facility is fairly short. The average person doesn't spend as much on care as the insurance companies would have you believe.

    All of the above said, most of my experience is with clients taking care of parents, and my own very large family. For single people with no kids or siblings to rely on, etc., I could see it being a lot more daunting financially to prepare for long-term care type expenses. A lot of times families can step in and prolong paid care for several years. You are going to want a bigger nest egg if that is not your situation.

  4. CB in the City Says:

    I think 76 is actually on the young side for onset on dementia. That was my hunch, and I looked it up, and only about 20% of people between 65 and 85 have dementia. But that doesn't matter on the individual level, it comes when it comes. I'm just saying it's statistically more likely that you yourself will not be affected at that age.

    I don't know much about long-term care insurance, but I agree with those above that building a bigger nest egg is probably the best insurance for all end-of-life issues.

    I am very sorry that you are going through this with your dad. You are being a wonderful daughter, especially considering that you were not close.

  5. Rachael777 Says:

    Thanks for all the feedback. I admit I might get freaked out faster than most folks....but really freaked out w Dad's condition and the possibility that I might not have that much time. Nice to hear it is not all genetic .. I know some of it is.. Dad had a stroke 6 months ago and though he had some memory issues before it SUPER ACCELERATED after that. Reading on line says that trauma and stroke can cause or exaerabate it. Anyway. (this is an initial rate) but if my rate is $1770 for $4500 a month (increasing yearly w inflation) worth of coverage. lets say I do not need coverage until I am 75. so 30 years from now.. so $53000 approx paid in total with benefits of OVER $4500 a month thereafter (why would this NOT make sense. I am not understanding.. it seems like the payoff is 10 months of care needed. Dad pays $4600 now but we saw places starting at $6200. trying to learn. please help

  6. MonkeyMama Says:

    IT doesn't make sense because the odds are the insurance company won't pay out. What are the odds they will honor this policy if you need it in 50 years? What are the odds they will even still be in business? How much will premiums increase in the next few decades? What is actually covered and how will the benefits change over the decades? I think the simple answer is the long-term nature of the insurance. Coupled with the current trend to reduce benefits and increase premiums over time.

    Of course, you have youth on your side. If you invest the premiums instead you can self-insure. Keep in mind that these would be "end of life" expenses where it would also be appropriate to draw down the last of your assets. I am sure the majority of people cash out their homes to pay these expenses. But even my poorest of relatives were able to self insure these type expenses, without the benefit of home equity. I share because I know surely you can do this! I think saving and planning is really 90% of the battle. If the rentals are for income it would make sense to cash them out when you come up against your final years.

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