Can You Afford Long-Term-Care Insurance?

If you are broke, you don't need LTC. Medicaid will pay. If you are a millionair, you don't need LTC because you can afford to pay the $4000. a month, but if you are anywhere in between, you need LTC. A few years at $48,000 per year would ruin my portfolio. I pay about $240 per month for a policy that will cover both me and my wife for 4 years at $4000 per month, has a 5% inflation clause and will be completely paid up if one of us dies. With this policy, I know I won't have to depend on my kids to care for me or their mother.

Wiley Jack of GA 9:24AM July 29, 2009

"Just 7% of all women who are healthy enough to qualify for long-term care policies will need long-term care for more than two years, according to the American Association for Long-term Care Insurance, an industry group. Only 2% of men will need it for more than two years." (from http://www.usatoday.com/money/perfi/eldercare/2007-06-27-elder-long-term-care_N.htm)

And there are so many stories about insurance companies that run these plans as ripoff profit centers, I am really relucatant to spend any money on LTC insurance. Remember, too, that most policies have a limit of 4 years, so if I end up needing LTC for 10 years, I will probably be no better off financially than if I never had it.

Lee Cornell of MN 1:47PM March 18, 2009

We went for John Hancock LTC insurance. Since we purchased in our forties, our yearly premium is about 3k. Our policy is also indexed for inflation and can be used on in home nursing care or assistance at home ( cleaning cooking etc) if need be. If one considers for a moment that the cost of nursing homes can exceeed 5k per month, it suddenly makes sense to purchase the insurance. My great aunt who is now 94 had to be placed last year and the " considerable savings" she clung to for dear life are evaporating before her eyes. I would much rather protect my home and assets with this policy now than watch all we worked for go into the pockets of a greedy ( and often substandard) nursing home. Unfortunately too many people wait too long and employ denial until a health crisis hits. Then, it is too late.Even if we never need a nursing home per se, we may one day need a home attendant or help with maintaining our independence. We don't want to be at the mercy of the market, medicare or any other "entity".

Margaret Heekin of NJ 12:44PM March 04, 2009

Those premiums are actually a bargain. The insurance company is taking on an incredible and somewhat unknown risk for a known premium. So for $200 - $300 per month, you can get back maybe as much as $500 per day in benefits. You could pay this costfor 15 years and get it all back in 1 year if you have to go into a nursing home. Nursing home care is expected to double in 10-15 years. It is already outrageous. And long term care can cover in-home care, adult day care, meals on wheels, etc. It is not just for nursing homes. Medicaid will not be able to afford this cost with the aging population. the government is giving us hints via that we should really self insure if at all possible. Quit buying $50,000 SUV's and spend some money protecting your assets and your family. This is all my opinion. But Life insurance, disability insurance, and long term care should be worked into your budget even before your mortgage. In other words, before buying expensive homes and cars, make sure you can afford these things in your budget.

john of OH 9:01AM March 04, 2009