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
Question-Long Term Care insurance
May 14th, 2015 at 08:41 pm
May 14th, 2015 at 09:43 pm 1431639830
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 ...
May 14th, 2015 at 10:11 pm 1431641509
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.
May 14th, 2015 at 11:40 pm 1431646804
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.
May 15th, 2015 at 01:53 pm 1431698016
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.
May 15th, 2015 at 08:21 pm 1431721306
May 17th, 2015 at 01:42 pm 1431870157
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.