"Why long-term care insurance has yet to catch on"
What;s your take on this? That the long term care insurance industry is the most ignored insurance body there is. I think that the writer made his ideas clear and well yet people think that LTC is nothing but a scam
I carry long-term care insurance on my wife and myself. Based on the genetics for my family and my wife's family, if I need it, the time will be short. If my life needs it, (here Mother is 93 and she has one uncle who is 100, two more that are 95 and 96 and one that died at 92. My parents and brother all died in their 60s. My sister my break the chain she is 67 and a Cancer survivor.) Since I had to put my mother in a nurising home (she had ALS) I know what the cost can me and even with state assistance, and Medicare, there are expenses that are not covered. Long term care is not expensive. Do not buy it when you are 30, but start looking at it when you are nearing 60. It can help protect the money you have saved over the years and prevent a lien from being put on any life insurance payments that will come after you die.
You can get insurance poor. It depends on your resources, illness and family. We have one child, who has disabilities. Discounting accidents, I will die before my wife--in the genes. Thus her policy has a rider that increases the amount. I do not.
Look into professional associations. I am now a one man firm these days, and I get the preferred group rate by just joining a prof association with no underwriting. Anyone can join. There are professional associations for every field.
Long term care has numerous issues. One is that it is extremely expensive in comparison to other forms of coverage like life insurance and disability coverage. One major risk is that because it is not always profitable to operate, many insurers have simply stopped selling long term care policies. That in itself is a major risk. One could carry a policy for many years, and then simply see an insurer leave the marketplace. The risk that you paid several years of premiums and now still have no coverage is significant.
Personally, I think the most attractive of these options I have come across is coupling the LTC benefit as a rider that operates as a draw against a death benefit in permanent universal life policies. In general I am not a fan of permanent life insurance. And typically you are paying more money for the cost of insurance in these types of policies. However, if one is after LTC coverage, they can be assured that there will be some return on their money...either as a death benefit to their beneficiaries or a LTC benefit with that approach.
The real issue is whether or not you need it to begin with. As an example, most people who are placed in a nursing home will not last more than 2 years. When you look at the annual cost, many wealthy people are simply better off self insuring. They can generate a better return on their money by funding the cost of this potential liability on their own.
Most lower income people can't afford the premiums, and are better off pursuing the proper estate planning techniques to shelter vital assets for their beneficiaries. In doing so they will have access to numerous existing state and federal programs that will satisfy the same need. (although that may change with aging demographics).
So in most cases the market for LTC is really those who are upper income, but not extremely wealthy. I wouldn't say it's a scam. I would just say it is only financially feasible and/or appropriate for a smaller segment of the population than many other forms of coverage.
My mother died of ALS--I lived in a different City, my sister worked full time. Home care was more expensive than a nursing home. There are a lot of different scenarios and determine what is best for the individual and the family.
of course...and proper estate planning in advance is how you can often access numerous programs that many people don't realize they are entitled to that will cover most of this for you, especially since your paying for it with your tax dollars anyway
You are correct. However, disability coverage can be hard to get. I could not get health coverage until Obamacare--long story. Disability coverage is often tied to SS benefits and it is not cheap. My last job had it and it was very expensive.
Disability, LTC and life insurance are all underwritten using entirely different metrics. Disability is usually quite reasonable if purchased through a group plan early in life. Most people can access group rates through professional associations.
LandmarkWealth--You raised a key issue--purchased early in life. Maybe that is doable today. Back when I was in my 20s, 1970s, that was not a viable alternative. Now that I am in my 60s, if needed I could get SSDI, but that would not cover LTC cost.
Group disability typically has no underwriting. I get 5k a month benefit through my FPA membership for $21 per month and no physical. The disability is not designed to pay LTC benefits. That is an entirely different planning issue.
Landmark, I know Disability and LTC are different issues. My office was not part of a large group, so low rates were not possible.Plan paid an amount to equal 80% of gross after SS. My secretary was cancer survivor. No claim could involve cancer.
by Karen Lorenzo 4 years ago
One of the many valid reasons why most Americans disregard the idea of buying long-term care insurance is to avoid the mess of financial trouble once it started wrapping itself to you/them. And they have every reason to be to do this. Once you are glued to long-term care insurance, it is actually...
by Maria Castor Handley 4 years ago
I need help for my insuranceHi. I need some advice about getting a long term care insurance for my mom. She's currently 52 and I talked her into this a couple of months ago when her friend got a heart attack. I also talked to an agent about us, my mom and me, sharing her premiums so she can finish...
by Maria Castor Handley 4 years ago
You came here because of the title huh? Same thing what happened to me. I was googling something random when I came across acsia.com where they posted this link http://nymag.com/news/features/parent-h … re-2012-5/ from New York Magazine titled "Mom, I Love You. I Also Wish You Were...
by income-protection 6 years ago
You Know What is Term Life Insurance?
by Kristin Trapp 5 years ago
What is the difference between whole and term life insurance?Is the amount of time each insurance policy lasts the only difference or are there others? Does age play a role in determining which one is the best type of life insurance for me and my family?
by MomsTreasureChest 3 years ago
What's the difference between term life insurance and whole life insurance?
Copyright © 2018 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|