Federal long term care insurance - good option?

Nov 29, 2018

  1. allencunningham
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    allencunningham New Member

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    Can anybody tell me if the federal long-term care insurance is a good option.I wanted to get it for my wife who is 65 years old. She has type 2 diabetes and hypertension both controlled.
     
  2. ltcadviser
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    ltcadviser Guru

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    Yes, very good option for all female applicants. The FLTCIP will have the lowest initial rates for all female applicants today. Nothing will be less expensive. Many alternative options will be significantly more expensive. The only downside is the rate increase risk with John Hancock at this premium pricepoint. Still, nothing will be immediately better.
     
    Last edited: Nov 30, 2018
  3. allencunningham
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    allencunningham New Member

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    Hello advisor, thank you very much for the quick reply. I was going to go with calpers LTC however they have a class action lawsuit winding thru the courts and they say that if they lose that class action lawsuit they're going to have to raise rates by 125% since it would have to be paid through the fund itself.
     
  4. Mr_Ed
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    Mr_Ed Guru

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    Mr_Ed, Nov 30, 2018
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  5. allencunningham
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    allencunningham New Member

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    I am retired military, I could go to the VA Retirement home in Yountville in northern California. It's spectacular, and nearby where I live
     
  6. Mr_Ed
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    Mr_Ed Guru

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    If retired military can get free long-term care, why does the MOAA recommend long-term care insurance?

    Here's what va.gov says:

    "Your eligibility for long term care services, provided in any long term care setting, will be determined based on your need for ongoing treatment, personal care, and assistance, as well as the availability of the service in your location. Other factors, such as financial eligibility, your service-connected (VA disability) status, insurance coverage, and/or ability to pay may also apply."

    Here's the link from va.gov

    Paying for Long-Term Care

    You should look into this so that your wife is not surprised when she gets a bill from the V.A. for several thousand dollars per month to take care of you.
     
    Mr_Ed, Nov 30, 2018
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  7. allencunningham
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    allencunningham New Member

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    I think they said they would take 30% of my retirement income, so that would be $3k per month. I am now 72 and say when I turned 82 I would have to go into LTC. If I buy a policy now and pay 10 yrs of premiums for a 72 y/o, assuming they would cost me ~$500-$600 per month and don't increase I would have spent approx 70k on premiums. And I expect premiums to more than double in 10 years, given that baby-boomers are just now hitting their 70's.

    I would rather go into VA care and pay when needed. The Yountville VA home is in the mountains of Napa county and beautiful
     
  8. Mr_Ed
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    Why do you think they'd take only 30% of your income? That's ridiculous.
     
    Mr_Ed, Nov 30, 2018
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  9. allencunningham
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    allencunningham New Member

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    I read it again, it's actually 47% of your income
     
  10. Mr_Ed
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    Where did you read it?
    Do you have a link?
     
    Mr_Ed, Dec 1, 2018
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