Pros and Cons of Long-Term-Care Insurance

Reader Comments
Back to article

Another way to help manage costs is to take a coverage that does a monthly accounting with your benefit vs. the daily rate. A monthly maximum benefit gives you more flexibility usually means less out of pocket expenses. With a daily benefit of $150 per day, what happens if expenses end up being $200 one day and maybe $90 on another. With a daily benefit you automatically pay the extra $50 out of pocket while on the $90 day, even though there would seem to be more benefit available, it is not because the accounting is day to day.

Glenn Jacob of AK 2:09AM December 12, 2010

What of the people who go in free with gov't support? Are they treated differently? I know they are limited at each facility.

Peggy Walters of IL 9:36AM October 22, 2010

Given the current economic conditions it is important to remember that your coverage is only good if your insurance company survives long enough to pay your claims.
A lot of insurance companies are currently in very bad financial shape and have been aided in hiding their financial condition due to very liberal accounting rules which help them to avoid marking to market their investment holdings. For example AIG was one of the largest companies around and you know what happened to them. Size does not guarantee safety. IMO economic conditions will worsen for several more years and perhaps much longer forcing these insurance companies to realize these losses. For this reason alone I would not consider LTC health insurance and I will self insure. FWIW I was an accounting manager for over thirty years prior to retiring four years ago. As others have said, the insurance companies have already done the math and it favors them. So unless you have an extensive family history of early alzheimers, or some similar ailment I would advise against buying this insurance and would recommend you self insure (if that is an option given your personal financial condition).

Stan of CT 9:44AM August 08, 2010

We do not have any assets. We have 2 children in college, they are paying for most of their education via student loans n jobs. We are looking into LTC. The premiums r going to be a challenge.
I have no idea where to educate myself regarding a situation, what will happen, if we do not have LTC and if we need help with daily living, if something is happen, health-wise.
Please help.

RM of PA 11:31AM August 03, 2010

As a long term care agent specializing in this field for 15 years, I have seen over a hundred and fifty claims. Just one client needed to go to a nursing home right away, stayed 4 years and now is in assisted living. Everyone else has had a spouse, kids or friends to help them stay home, and the insurance was able to keep my clients home by giving professional help to the them. When family caregivers have good advice and time off, they can manage a lot longer with less of a burden. The best companies provide assistance finding help and discounts for agencies and equipment.
As one client wrote to me,"From Patricia’s initial evaluation from a nurse you sent to our house to evaluate her to the wonderful case worker who stayed in touch with us consistently, our LTC insurance company, including you, could not have been nicer or more efficient. Your program made my wife’s last days infinitely more comfortable, and for that I am eternally grateful."
Virtually all policies sold in the last 10-15 years from the major companies with good financial ratings are easy to claim from and willing to be flexible. I'm delighted to pay for mine annually--I do not have to be concerned about having a large nest egg. If "something happens," I am going to have choices.

Barbara Hanson of CA 8:29PM May 25, 2010

To Mr. Muser of NM:
You stated, "Get a voluntary national database
of those policyholders who have benefitted financially from their LTC insurance, VERSUS THOSE WHO HAVE LOST A BUNDLE ON IT, and I'll show you the easy path to making a decision about whether to buy it. The fact of the matter is this: If any private LTC insurance company is "offering a good deal", they will most likely be bankrupt before you get to the nursing home to collect---OR, they will keep raising the premiums until you cannot afford them and have to drop before you get disabled enough to qualify. The modern policies are all priced to extract from you (in advance) a lot more than the cost of an "average-length" stay in a facility. That's they only way the "business model" can work."
The federal gov't conducted an extensive study in 2008. The study concluded that long-term care insurance was very beneficial to those who went on claim.
You can read the study at this link:
http://tinyurl.com/Federal-LTCi-Claims-Study

Scott A Olson of CA 12:50PM April 21, 2010

You think LTC Insurance is prepaid hell? See what it does to a parent or loved one's life savings and assets if they don't have it.

Ron of OH 9:31PM March 02, 2010

Do your homework first with LTC insurance!! We researched this carefully before buying (2 years ago when we were 58 and 64): got the built in "inflation" coverage, a company endorsed by AARP and Moody's, locked premiums of $3000 annually, inclusion of options for home health aides OR an in-home nurse OR nursing home - with the same payout for any of those 3. We decided for us it is worth the cost. We also have a relative in a nursing home in NYS - paying $370/day for just basic care... it is depressing. Our hope is with the LTC insurance + savings and pensions we will be able to stay in our own home with a live-in nurse, it sure would be cheaper and more agreeable than a nursing home!

Susan of KY 1:35PM February 23, 2010