Question on Long Term Care

[csalter]

Interestingly, I spoke with another agent. They discussed Genworth, United of Omaha, and Transamerica. They offered various benefits. Interestingly though when looking at all of the options and numbers, Genworth was still very, very competitive. Transamerica was expensive.

I looked at the CA partnership too. My wife can keep all of her income in her name. I basically would lose my income if I were in a nursing home. Medi-Cal would give me $35 for personal needs. In addition, all of my retirement accounts would be protected as well.

If my wife were not working, then I would let her keep her income in her retirement accounts which are protected. She would then be eligible to receive that $2834 or more depending on our living expenses. I learned that that amount is not engraved in stone.

I read the website Department on CA Health Care Services. There are some policy requirements in place for partnership policies like the care coordination plans, staffing ratios at facilities and certicfication for facilities.

The big thing is that I have not had anyone share with me if partnershop policies have seen an increase. As of now I only hear no. That could be the deal breaker for me.

 

[billberry12]

If they have not had an increase, that doesn't mean they will never have an increase. I wouldn't advise you to count on no increase in the future. So, why could that be a deal breaker?

 

[csalter]

If they have not had an increase, that doesn't mean they will never have an increase. I wouldn't advise you to count on no increase in the future. So, why could that be a deal breaker?

I realize there are no guarantees that they will not go up. There are no guarantees with anything. However, there obviously is a resistance of some sort resistance to raise prices. So if they are going to raises at least there seems to be some consideration.

I am considering doing the 10 pay anyway. This way I would not even have to worry about prices rising. However, as a customer I would at least like to think or believe that someone is looking after me.

I am still not hearing or seeing anything better being offered that would suit my needs especially when I look at cost.

 

[jimmy109]

Term insurance is a type of life insurance where we can invest for a particular period of time that is known as term. In this plan death benefit is only availed if insured dies during a term. It is not that much expensive than normal life insurance plans. There are many other plans available in term insurance where premium level and benefits varies as per the plan.

 

[csalter]

Term insurance is a type of life insurance where we can invest for a particular period of time that is known as term. In this plan death benefit is only availed if insured dies during a term. It is not that much expensive than normal life insurance plans. There are many other plans available in term insurance where premium level and benefits varies as per the plan.

Jimmy, you must have placed this post in error as it is not related to this topic. We are not talking about life insurance in this thread.

 

[tins]

Jimmy, you must have placed this post in error as it is not related to this topic. We are not talking about life insurance in this thread.

He is a robot....you must forgive him, he knows not what he does.

 

[Arthur Rudnick]

I looked at the CA partnership too. My wife can keep all of her income in her name. I basically would lose my income if I were in a nursing home. Medi-Cal would give me $35 for personal needs. In addition, all of my retirement accounts would be protected as well.

As previously stated, every state has different rules & regulations for Medicaid, as it relates to assets & income contribution. I'm not sure how Medi-Cal works, but in NY, 25% of a spouse's income is on the table, towards the contribution of the other's spouse's LTC services.

Yes, you would basically lose your income and you would also lose all of your assets, up to around $2,000. Keep in mind that your wife's assets are also considered YOUR assets and vice-versa.

And, as far as your retirement accounts, the distribution from your pensions, IRAs, and any qualified plans are considered income and you will be required to contribute that income towards the cost of your care. Social Security is also up for grabs.

But, here's a more normal scenario: With a LTC policy, chances are pretty good that you will not wind up in a nursing home. More likely, you'll stay at home to receive care. That being said, you better look at the regulations on how much income a couple will be able to maintain while on Medi-Cal when staying at home.

The numbers in NY will not allow you to maintain any type of lifestyle and barely allow you to pay for normal living expenses.
But, the bigger question is why in the world would you want to be on a Medicaid Program, knowing what Medicaid is today and not knowing what it could be in the future

The issue of Genworth or other companies raising rates is a non-factor. If they haven't raised rates yet, they most likely will in the future. And, if they have recently raised rates, chances are good that another increase won't be coming for a few years.
You can either afford a policy today with the potential of future increases or you can't. And, if you can't, you shouldn't be looking to purchase a policy in the first place.

You seem to be looking to this forum for justification as to why a Partnership policy is the right choice for you. Previous posts has brought out the pros & cons. If you feel that you've done your due diligence and are convinced that it's appropriate then purchase a one.

If affordable, a 10-pay is the way to go for any policy.

 

[CALTCAgent]

As previously stated, every state has different rules & regulations for Medicaid, as it relates to assets & income contribution. I'm not sure how Medi-Cal works, but in NY, 25% of a spouse's income is on the table, towards the contribution of the other's spouse's LTC services.

Yes, you would basically lose your income and you would also lose all of your assets, up to around $2,000. Keep in mind that your wife's assets are also considered YOUR assets and vice-versa.

And, as far as your retirement accounts, the distribution from your pensions, IRAs, and any qualified plans are considered income and you will be required to contribute that income towards the cost of your care. Social Security is also up for grabs.

But, here's a more normal scenario: With a LTC policy, chances are pretty good that you will not wind up in a nursing home. More likely, you'll stay at home to receive care. That being said, you better look at the regulations on how much income a couple will be able to maintain while on Medi-Cal when staying at home.

The numbers in NY will not allow you to maintain any type of lifestyle and barely allow you to pay for normal living expenses.
But, the bigger question is why in the world would you want to be on a Medicaid Program, knowing what Medicaid is today and not knowing what it could be in the future

The issue of Genworth or other companies raising rates is a non-factor. If they haven't raised rates yet, they most likely will in the future. And, if they have recently raised rates, chances are good that another increase won't be coming for a few years.
You can either afford a policy today with the potential of future increases or you can't. And, if you can't, you shouldn't be looking to purchase a policy in the first place.

You seem to be looking to this forum for justification as to why a Partnership policy is the right choice for you. Previous posts has brought out the pros & cons. If you feel that you've done your due diligence and are convinced that it's appropriate then purchase a one.

If affordable, a 10-pay is the way to go for any policy.

Well said!

How much money do you have in Non Qualified Retirement Accounts? (not IRA's, 403b, etc.)

Do you own any other property or ever plan to purchase another house?

You might consider structuring the plan a bit different. Hard to speculate until I talk with someone though about their preferences. JMO.

 

[csalter]

Well said!

How much money do you have in Non Qualified Retirement Accounts? (not IRA's, 403b, etc.)

Do you own any other property or ever plan to purchase another house?

You might consider structuring the plan a bit different. Hard to speculate until I talk with someone though about their preferences. JMO.

I was looking definitely looking at if I should invest in the partnership or not. Based upon comments here, what I have read, and the agents that I have worked with it would be advantageous to have the partnership policy just in case. More than likely I will not see the light of day with Medicaid. I decided to go with the 4 year $300 a day, 5% IP, 90 elimination period for myself and do the lifetime for my wife. I will do the 10 pay and drop the spousal survivorship rider. I am going to use Genworth. It is costly now, but I am thinking it will be worth it in the long run and I will not see increases. I just need Genworth to stick around just in case I need it.

Thank you to all of you for your assistance.

 

[Arthur Rudnick]

Congratulations on purchasing a LTC policy............