Mitigate Nursing Home Risk

Discussion in 'Long Term Care Insurance Forum' started by entrep1776, Jun 7, 2017.

  1. entrep1776
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    entrep1776 Well-Known Member

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    My Parents are in young 70s on Medicare with supplement. Talked to Mom she said they have enough money for 2.5 years of nursing home care. Mom said 2.5 years is average nursing home stay.

    .......
    from
    How to Pay For Nursing Home Costs | Best Nursing Homes | US News

    A semi-private room ran $222 daily, or more than $81,000 per year. And the average nursing home stay is 835 days, or more than two years, according to the government's latest National Nursing Home Survey.
    .......

    Any suggestions/insurance products to mitigate this risk (other than stay healthy). Maybe LTC insurance. My parents said they looked at LTC insurance, but didn't to buy it.
     
  2. yankee466
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    yankee466 Well-Known Member

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    Three ways to cover the cost of care......Savings, Insurance, welfare....pick one. If your parents have the money, and you do not care about inheritence....you have nothing to worry about. Else, one would wonder why they are not better prepared......and passed on an opportunity to purchase protection when they were likely younger and maybe still healthy enough to qualify.

    There are many forms of insurance that you can still purchase in your 70's that will help with LTC needs, but there are costs and health factors to consider. Maybe they need to talk to a financial advisor, and/or someone who specializes in LTC options.
     
  3. entrep1776
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    entrep1776 Well-Known Member

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    Thanks appreciate the input. They are currently going the savings route to pay for long term care. I hope they blow all their money to make themselves happy. But, of course an inheritance would be nice. I don't know too much about their assets Annuities savings investments retirements insurance. I would guess they each could pay 2.5 years of nursing home care. Guessing more than half million in assets.

    They have said they talked to someone about LTC and talked to their friends about ltc. They do talk to financial advisors. I was hoping an agent on here might have suggestion I could tell them they might want to investigate.
     
  4. yankee466
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    yankee466 Well-Known Member

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    Well...I am an agent....and I think I just made a suggestion. Why did they reject considering some form of LTC insurance? Too expensive....not healthy enough to qualify....what product options did they look at.....traditional, hybrid, life with riders, etc.???....lots of options.

    If 2.5 years is the average.....my mom took 6 years and my MIL took 9 years. Hope your parents are average or less than average. :no:

    here's another suggestion for helping with LTC costs.....Costa Rica.
     
  5. ltcadviser
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    ltcadviser Well-Known Member

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    Just get them an LTC policy. As Herman pointed out, care could easily last for 5-10 years especially for women. An "average" need is a meaningless number. The only important number is what happens to your parents. For your parents, either look at a traditional LTC policy --Mutual of Omaha will be good for applicants in their 70's. Or look at the State Life Asset Care hybrid policy with Lifetime LTC benefits. Good luck.
     
  6. entrep1776
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    entrep1776 Well-Known Member

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    My parents are fairly guarded with their finances. they don't discuss too much with me or my siblings. & I don't inquire very hard.

    I think, don't quote me, What my grandparents did was give away all their assets far enough ahead of time. Then the state/government paid for my Grandpa's nursing care. It was a pretty nice facility. My Grandma passed away while she lived in her house while living off social security which wasn't much money.

    Thanks for Idea on Costa Rica.
    Costa Rica may be a health care solution for non-independent retirees | Live in Costa Rica Blog

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    I think what they told me was really expensive for LTC insurance. I don't remember number. Any guesstimate range for long term care? Mom healthy plays tennis about 5 times a week(don't think she'll be ready for Wimbledon any time soon). Dad recently had operation which stopped an issue with Afib.
     
  7. yankee466
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    yankee466 Well-Known Member

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    I recently helped a 72 year old couple put together a traditional LTC plan with Mutual of Omaha for a little more than $400/month.....and it provided $250,000 of benefits that the two of them shared. Now, they could have spent a lot more, and they could have spent less....as you get what you pay for....but for them it made sense.

    I had a 78 year old married female ask me for quotes the other day for her alone, as her 81 year husband has already been diagnosed with dementia, and she is considering spending about $780/month for $400,000 worth of coverage. Not sure that she is healthy enough to qualify however. The older you are.....the more expensive these plans get when you wait to apply.
     
  8. CALTCAgent
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    CALTCAgent Well-Known Member

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    Do they have kids that can take time off from work or are retired that can care for them ?
     
  9. entrep1776
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    entrep1776 Well-Known Member

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    Parents in Florida.
    Both of my sisters (MD & PhD) have families /careers in TX/IN. I have a job (not necessarily career) and no wife/kids in Illinois. I enjoy my house/renters and W-2 job & 2 dogs. & planning to start selling MS here. With some inconvenience, I could relocate. I typically fly down to FL 3 times a year to visit. Average cost of direct 2.5 hour flight is less than $150 round-trip. I have flexibility when i travel to get price though.
     
  10. yankee466
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    yankee466 Well-Known Member

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    Sounds like all the kids should just chip in and try to buy the parents some insurance if they are healthy enough to qualify. everyone wins there if care is ever needed.
     

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