Long term care insurance... anyone have it?

[Jumpem]

We met with an insurance agent yesterday to get the long term disability taken care of, and to add some extra life insurance outside of work.

What about long term care? He said about $100/month for each of us for a policy that pays $200-250/day.

 

[Safeway]

It would be beneficial, but you need to check what sort of care is eligible. My uncle, prior to passing, was in an extended care nursing home. (Not an old-folks nursing home, but a staffed hospital residence.) The daily fee was near $1,000, and he stayed there for roughly three years.

This is the type of insurance that probably fills in a few tiny gaps left by other insurances. I know either Medicare or Medicaid pays for such faciities later in life.

 

[Jumpem]

Originally posted by: Safeway
It would be beneficial, but you need to check what sort of care is eligible. My uncle, prior to passing, was in an extended care nursing home. (Not an old-folks nursing home, but a staffed hospital residence.) The daily fee was near $1,000, and he stayed there for roughly three years.

This is the type of insurance that probably fills in a few tiny gaps left by other insurances. I know either Medicare or Medicaid pays for such faciities later in life.

I know health insurance won't pay it. And medicare and medicaid won't pay for people that have decent income and assets. The chance of us needing it is exteremly low, since we are both young.

 

[lykaon78]

I think there are new tax advantages coming in 2010 for LTC insurance that impacts the deductability of LTC premiums (favorably). I have very limited knowledge but if you are young - it probably isn't worth it. Multiply your premiums out until you're in your 50s or 60s and figure out what you'd have if you have saved your premiums and earned 6%. If that is more than the total benefit for the LTC you'd do better saving. Keep in my mind that you should never gamble against an actuary.


I work in life insurance so if you have question about that let me know by PM.