Comments on: Long Term Care Insurance – You Don’t Need It As Badly As The Insurance Companies Say You Do

By: Jack Lenenberg

Jack Lenenberg — Tue, 06 Dec 2011 22:48:07 +0000

Brenda, a 10 pay may have value in insulating the policyowner from ongoing rate increases by the insurance company. Most useful however is the unlimited long term care tax deduction available to owners of C-Corporations. Many C-Corps opt for the 10 pay approach if there are significant retained earnings in the corporation due to not being constrained by the age-based limitations applicable to S-Corps, and other self-employed entities.

For individuals that do not have C-Corps, a lifetime pay not a 10 pay, may make the most sense.

By: Dwight

Dwight — Tue, 03 May 2011 15:45:14 +0000

Hi Brenda,

There are such policies but it truly depends on the overall benefits of such a plan, the types of money being used(qualified or non-qualified), who does it benefit? So many variables. Without all the info, I personally wouldn’t be able to assist in advising you either way.

By: Brenda

Brenda — Mon, 02 May 2011 23:05:01 +0000

We are looking at this policy where you pay it all in 10 years. $15000 year … $150,000. Is there really any advantage to paying in advance or has anyone heard of that?

By: Mitch

Mitch — Fri, 21 Jan 2011 18:53:17 +0000

How would you know that Bill Gates, Warren Buffet, and Barbara Walters own long term care insurance policies?

By: Dwight

Dwight — Tue, 20 Jul 2010 09:59:25 +0000

Nick, allow me comment with this story. I met with a gentleman, in his 80′s, a week ago to review his insurance plans. He lives in an independent living facility. He lives there because his wife suffers from altzheimers and resides in the adjoining dependent facility. Close to 30 years ago, he purchased an LTCi policy for both of them paying roughly $50- $75 per month with an inflation rider. It has been 6 years now since his wife has been in this facility. Were it not for his foresight, he would be responsible for $8k per month. Fortunately, he is only responsible for $1,260 which is so much more palatable.

LTCi is more than just for asset protection. The true purpose of any LTC is to help in getting the patient better. Minimal financial burdens helps to heal faster. But also having options… care in home, assisted living, adult day care OR nursing home, helps. An LTCi offers those options.

By: Nick Salem

Nick Salem — Tue, 20 Jul 2010 00:25:14 +0000

I am struggling weather to buy LTC also . From what i can tell it really is a form of protection of a dollar ammount , because most affordable policies have a maximum dollar ammount , componded or simple % inflation increase .
So i guess what one is looking at is let’s say at today’s dollars you want to protect $ 204 , 000 ( i am actyally looking at a policy now, with these ammount’s ) A 3 % inflation rate , $ 140.00 a day start , with most bells and whistles , 90 day waiting period , except shared policies and no return of any preminum’s . For $ 117.00 a month , level guaranteed for 10 years and i am 59 yrs old .
Now all that sounds good but i am only protecting $ 204,000 of assets and at todays nursing home rates where i live ( Houston , Tx. ) , the rates average Monthly $ 2,800 for low level nursing homes to $ 5 ,000 for alzheimers care , to $ 8,000 a month for Complete Bed ridden skilled nursing care .

So all that to explore , are the preminums justified for protecting $ 204,000 dollars of my assets , What do you think ?

By: marcy

marcy — Sat, 22 May 2010 16:04:52 +0000

I am 55 years old and my husband is 54. I was in an accident about 27 years ago and had a severe blow to the head that left me without a sense of taste or smell for about a year. I have a furrow in my skull from that accident. I say that because a severe blow to the head increases the chance of developing Alzheimer’s disease.
I have found that I am having some difficulty remembering the appropriate word when I am speaking to a group, and on occasion having a bit more trouble organizing my thoughts. Not bad enough to interfere with my ADLs but concerns me. I’m torn between going ahead and purchasing insurance “just in case” so I can then see a doctor (after whatever time period in the insurance) if I am indeed beginning to develop dementia.

By: Rebecca

Rebecca — Wed, 14 Apr 2010 14:48:26 +0000

I purchased LTC insurance while on active duty around age 35. I may have been too young to worry about it, but i am not married and have no kids so didn’t want to burden my sisters or nephews. My premium was locked in at less than $90 a month and includes in-home care, assisted living and nursing home care. Max daily benefit of $450/day, 90 calendar days waiting period and 4% inflation protection per year. Maybe I will need it and maybe I won’t but it is a small price to pay for peace of mind.