Great Response to LTC Critic

[csalter]

I read this article on LTC and it was the regular writer with the normal bashing of the policies. However, in the comments a gentleman by the name of Scott Olsen seemed to refute the article so eloquently that I have shared it a few times on different boards. Even the author was impressed with his responses. Read the article but more importantly read the comments written by Scott Olsen. He does your industry well.

Dodge the Long-Term Care Insurance Mess - Forbes

 

[GreenSky]

I'm happy to have known Scott for several years and highly respect the good he does for the industry and those in need of care. He is one of the "good guys" working in a niche that most of us can't handle.

Rick

 

[CALTCAgent]

Scott sounds very familiar. I have heard of this person somewhere.

I love the response after Scott's.

" I would argue that long-term care coverage is rarely needed. Most people will never need long-term care. In the event they do, the average stay is two years.
Here in Sacramento, I have a client in a full service nursing home at a cost of $45,000 per year. A Social Security benefit of $20,000 and a modest pension of $25,000 pays the bill. This person pays no income tax (because of the large medical deduction) and still owns a home and a modest savings account."

They only pay 45K a year for a "full service nursing home". And they pay no income tax!

But of course LTC is rarely needed.

 

[Justin Bilyj]

His retort was worth reading the article..

 

[Mr_Ed]

Scott sounds very familiar. I have heard of this person somewhere.

I love the response after Scott's.

" I would argue that long-term care coverage is rarely needed. Most people will never need long-term care. In the event they do, the average stay is two years.
Here in Sacramento, I have a client in a full service nursing home at a cost of $45,000 per year. A Social Security benefit of $20,000 and a modest pension of $25,000 pays the bill. This person pays no income tax (because of the large medical deduction) and still owns a home and a modest savings account."

They only pay 45K a year for a "full service nursing home". And they pay no income tax!

But of course LTC is rarely needed.

I think the 2nd comment made by Scott Olsen is better than the first.

 

[ltcadviser]

Yup, that $3000 month longevity annuity stipend in 20 years is really going to make a dent in the $18,000 month LTC bill. What a great substitute for LTCi. Oy vey.

 

[csalter]

What really scares me is when I hear people talk about self insuring as an alternative. Not everyone has $10,000 to $20,000 per month sitting around for this type of care. My wife and I do pretty well and save money, but we are in the upper tiers of income categories and with college tuition, children, home payments, insurance payments, food, etc., don't have that kind of money laying around. Just like people don't have $200,000 to $500,000 laying around to pay for their house to be rebuilt if there is a fire or other peril.

I don't sell insurance, but I can recognize a need for some. I take no pleasure in giving my money away, but there is a purpose for money and it's to use it wisely.