Benefit of Buying Long Term Care Policy Early

[billberry12]

csalter,

so looking back on it now, do you feel that was a good decision, or a bad decision, and why?
Thanks,
Bill

 

[csalter]

csalter,

so looking back on it now, do you feel that was a good decision, or a bad decision, and why?
Thanks,
Bill

To be honest with you, I don't really know. I truly mean that. Yes, I have piece of mind that I have something in place in case I do have need for it. I have a dad in a hospice right now with cancer in NY who will need Medicaid. They are looking back now those 5 years to determine how much in assests he has. If he stays in the facility he's in he will more than likely go over his medicare limit and they will place a lien on his house. If he and my mom were not separated, she would be in trouble with the house. So I look at this situation with no LTC and I say to myself, it's good you have it.

You know what I think? This may sound really stupid, but people want it and know it, but nobody really wants to pay for it. When you buy insurance on your house, you know the odds of using it are pretty good. Plus, it's not human. There is no pain on anybody if somethinghappens to your house. Only the house feels the pain.

With LTC you know that IF you need it, you're in pretty bad shape. Who wants to think about that? Certainly not me. Plus, you could think of so many other things you would like to do with your money that you're contributing to each year. I don't like paying for any insurance.

I must share with you that as I continue to read this forum on LTC, it is very unnerving with all of the industry's uncertainty especially with me having my policy with Genworth. Each time I read that someone insurance company is leaving the LTC sector, it makes you wonder if you're wasting your hard earned dollars. I really no someonw whose LTC company went belly up and they did not have any benefits. This stuff is real. Maybe I should not read about LTC or participate on this forum. Maybe ignorance is bliss.

I know I sent out mixed signals in my response, but I hope you can understand why. I am sure that in 10 years when i am not paying anymore, I will be glad that I bought it as long as Genworth is in business.

 

[ltcadviser]

originally posted by ltcadvisor




That's a pretty bold assumption Jack. And, you're basing that on what?

One can also assume that in 10 years, due to more & more baby boomers dealing with their parent's LTC issues, there will be a much larger and robust LTC business and many other carriers will jump on board.

The answer to James' question should be:
1) Premiums are based on age so it's always less expensive to purchase it at a younger age, and
2) The younger one is, the better chance they have of being insurable. It doesn't take a major catastrophic medical diagnosis to become ineligle for a policy.

Just my 2 cents......
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Originally posted by James123



Just thinking, maybe James was really asking if it makes sense to buy a policy early in the day, like 9:00 AM?

Arthur, I completely agree with your answers. The reasons you provide are surely the most important and obvious reasons. I was just trying to see into the future.

 

[Arthur Rudnick]

originally posted by csalter

When you buy insurance on your house, you know the odds of using it are pretty good

Not sure where you're getting your odds from. The odds of someone needing LTC services before they die is 70%.
(too lazy to look up the source, but I can verify it if you need)

I highly doubt that 70& of people owning a home put in a claim for homewoner's insurance.

 

[CALTCAgent]

"With LTC you know that IF you need it, you're in pretty bad shape. Who wants to think about that? "

People that care about what hapenns to their family if they need LTC. Its not for everybody.

"I really no someonw whose LTC company went belly up and they did not have any benefits. This stuff is real."

Can you tell me what company they had?

This is not possible because of state guaranty funds.

 

[csalter]

originally posted by csalter



Not sure where you're getting your odds from. The odds of someone needing LTC services before they die is 70%.
(too lazy to look up the source, but I can verify it if you need)

I highly doubt that 70& of people owning a home put in a claim for homewoner's insurance.

You are probably right that 70% are not putting in claims, but that may not be because they don't want to. I know plenty of people who don't put in claims because they don't want their insurance to go up and they may have a legitimate claim to do so. Also, many people's homeowners' insurance policies on cover incidents in which a specific peril was the cause of the need for a claim. It's possible that you can have a legitimate loss but if it's not due to a fire or other peril they cannot file a claim. So my feeling is because they don't, doesn't mean that they don't have a legitimate claim. Even with that I don't think 70% are going to make claims.
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"With LTC you know that IF you need it, you're in pretty bad shape. Who wants to think about that? "

People that care about what hapenns to their family if they need LTC. Its not for everybody.

"I really no someonw whose LTC company went belly up and they did not have any benefits. This stuff is real."

Can you tell me what company they had?

This is not possible because of state guaranty funds.

I care about my wife and that's why we both have LTC.

I will try to find out the name of the carrier. The wife of a friend of mine told me that her husband's LTC carrier sent them a notice before he got ill that he nolonger had LTC insurance. She did not say anything about reducing benefits or anything like that. She told me it was discontinued. I will ask her what the name of the insurance company was.

 

[billberry12]

csalter,

Come on now, don't you think you have beat this horse enough?

You bought LTCI because you wanted peace of mind.
You bought homeowners because you wanted peace of mind.

You bought both because you realized the consequences of not having it if something happened would be more painful than paying the premium to have it.

Pay the premium, keep smiling, and enjoy life.

Don't worry, be happy!

 

[csalter]

csalter,

Come on now, don't you think you have beat this horse enough?

You bought LTCI because you wanted peace of mind.
You bought homeowners because you wanted peace of mind.

You bought both because you realized the consequences of not having it if something happened would be more painful than paying the premium to have it.

Pay the premium, keep smiling, and enjoy life.

Don't worry, be happy!

You are absolutely right. I try really hard to not worry and be happy. It's just not so easy for me. It may be because I am a cheapskate. :-)

 

[billberry12]

" I am a cheapskate. "

We all are!