Using Life Insurance proceeds for paying for LTC could be very expensive. Using Whole/Variable/Universal Life, cash value for LTCi premiums or LTC care costs could also restrictive, expensive, and contrary to the original reason for LI.
The best time to get LTCi is when you don't need it. Premiums are priced so that waiting a few years vs buying now will mean any cost savings will be lost in a just a few years. Plus, you are probably in better health today than later meaning your can lock in rates today. Having a heart attack & bypass may not disqualify you for LTCi but Diabetes or joint replacement could.
See a professional LTC representative! A couple of them, because different reps will sell different companies.
When you can qualify and afford the premiums, I think it is wrong to forego LTC insurance in the belief that Medicaid (entitlement) will take care of your LTC needs.
Most of the insurance companies that are no longer in the LTC business is because they tried to "buy" the market and consequently screwed their clients and shareholders.
I am in the estate planning field and am not a fan of LTC insurance. The situations where it actually pays off are rare, in my experience. I agree with the poster (too lazy to go back and look) who said to look at it as "bequest" insurance. The average length of time in a nursing home is something like 3 years. Most people either have the assets to handle that (savings, sale of home, etc.) or, if not, will be able to get Medicaid when their assets run out. I know an insurance rep who started focusing on LTC business and got very rich. He's now retired with two homes, one here and one in Europe. I doubt his clients will ever see much benefit. Seems to me that the real winners in the LTC world are the insurance brokers.
Most of the participants are spouting into the wind either for LTCi or against it. Whatever your currently believe, you must see at least several advisors/sales people. Why, because of DGDzDad, the "professional advisor."
His comment is written in such a manner where the reader can infer that everything will be OK in either outcomes. And that the LTCi rep made a lot of money in selling LTC. I think he is trying to lead people to believe that purchasing LTC is for suckers who believe in salesman. But his statement also could mean that this insurance rep friend was very good in his profession and helped his clients to purchase LTC.
LTCi is insurance. A futures Call option in case you live too long to where you could deplete your assets without it. Yes, you could lose your premiums if you die without using LTC. In any financial planning situation, you should be aware of the "hedge" outcomes.
Disclaimer: We have LTC, 10-12 years now, probably approaching $20,000 in premiums. We expect to live another 30 years, well into our 90's since our parents are in their 90's. We took care of DW father( 91) for 1 year under LTC guidelines. We are taking care of my mother (97) for 4 years, under LTC criterii
-- Edited by longprime on Thursday 4th of July 2013 08:27:00 PM
