Long Term Care Insurance Premiums

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By an edhat reader

What do you think about the increasing cost of LTC insurance (Long Term Coverage) for senior citizens?

The annual premiums are going up up up. My friend's went from $4,000 to $5,600 with Genworth this year. In trying to find something cheaper, we've learned a lot of companies that have offered LTC coverage are going out of business. Is there enough back-up in Santa Barbara to help seniors stay at home, when care is needed? Thanks!

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a-1561441087 Jun 10, 2018 11:15 AM
Long Term Care Insurance Premiums

The Senior Expo in S.B., I get the feeling that seniors are cash cows. Same for LTC, realtors, financial advisors, lawyers...even some judges... chomping at the bit to get their hands on seniors' homes, doctors over-doing everything and then "medication" to handle the unhappy elderly patient. Some people who are hired to come to your home to help out..sometimes help themselves. If you have no family, or your family is far away, you better not lose your memory. I'm doing my best to get ready, and I'm in my 70s. I wish UCSB would open some dorm rooms to seniors. I'd trust young people to care, and not see advantages to having a cash cow. The kids aren't quite there yet.

carolann Jun 08, 2018 06:29 AM
Long Term Care Insurance Premiums

4326 , Flicka and the person who suggested using home equity all have excellent ideas. Reverse mortgage allows people to stay in their homes and pay for care. See a specialist as the rules and laws can be complicated. Flickr is also right in saying families should continue to care for each other as we always have. But what happens when everyone nearby is at work or school and you are still home alone needing care? That's what these plans are for, and the type of policy referred to here is not the only type out there.

samstein Jun 08, 2018 04:54 AM
Long Term Care Insurance Premiums

The best way to handle long term care insurance premiums is by making necessary adjustments to your policy instead of dropping it. According to AARP and ALTCP you can save money on premium hikes by decreasing your benefit amount and benefit period. It also helps to increase your elimination period. This is still better compared to not having a coverage or any kind of back up plan.

sbmermaid Jun 07, 2018 01:35 PM
Long Term Care Insurance Premiums

I just did a quick 70.5 minimum distribution calculator as if I was that age today and it gave me distributions on a hypothetical account balance out to 97 years of age! So the distributions don't have to end at age 85 yrs old. I'm guessing that there will be many more options for long term care for folks in the future. We live in a great spot and people need housing. If you have an extra room, you can have trade for housing some inhome care. Live in a small scale group home environment and split the cost of care between a few older folks. Live in community housing etc.. For the majority of folks the goal should be to stay healthy, ditch the cars, start walking taking the bus, spend time cooking healthy food, go vegan, exercise daily and it won't be as hard to take care of yourself into your late 80's and early 90s!

Luvaduck Jun 07, 2018 12:22 PM
Long Term Care Insurance Premiums

....and if you DO have anything tucked away in a non-Roth IRA, federal law says you must liquidate it year-by-year until it is gone, at age 85! Which means it will be gone at the time you are most likely to need help or residential care. The only hope is to get politicians in office on the same rules as the rest of us. I don't see that happening since they are the very ones who would decide the issue.

paglinsb Jun 07, 2018 11:26 AM
Long Term Care Insurance Premiums

The rates for LTC insurance have ALWAYS been too high for most people. Even 20 years ago when working full time, and younger, I couldn't afford it! (And if you read the fine print, the payouts are often very limited if one were to need to use it. ) I think that I'd rather let nature take its course than live with such care, if it comes to that. Basically, however, I see that healthcare is a right, not a privilege. It is sad that only the wealthiest have access. (And while we're at it, let's have members of Congress cope with their health care as the rest of us do. That would change things.)

a-1561441087 Jun 07, 2018 10:23 AM
Long Term Care Insurance Premiums

First of all AARP is a for profit mney machine, dont look to that option for help, second, after 12 years of paying high premiums, that just increased ,and the benefits cut in half by a co my agent told me at the time was the most reputabe. haha. I see this pattern will only get worse with age. I ve realized this is a rip off and taking the advice of some very wise elder friends. , im going to use my home equity at the end of the day...to cover things. Don't fall for this b.s. uness you get lucky and need it like in your late 60's!! oh but you mught die then too. Or else start a specific retirement account and try not to dip into it !

oops Jun 07, 2018 08:40 AM
Long Term Care Insurance Premiums

An option is to self- insure. For example, put the original $4k every month into an investment account ( as if you paying a 3rd party).

RHS Jun 07, 2018 08:30 AM
Long Term Care Insurance Premiums

The problem is basic: Why do we rely on the profit motive to provide necessary human services? Clearly this is an absolute conflict. When these speculators fail they simply go out of business. Or they continue to raise rates to justify large corporate profits and high compensation for their executives. This sort of stuff--life necessities such as ER, hospital, medication, simple shelter and food, should be provided by our society through common effort, usually by taxing ourselves. This is cheaper, more humane and more effective than relying on greed.

Flicka Jun 06, 2018 04:17 PM
Long Term Care Insurance Premiums

The outrages cost of nursing homes is deplorable. Even in home care is extremely costly. Just need relatives to step in and take the job as we have done in our family for generations.

PitMix Jun 07, 2018 07:34 AM
Long Term Care Insurance Premiums

Your best option at this point is to make friends with an immigrant, and see if they have a relative with some medical training who is willing to come care for you, legally, if you give them a salary and let them go to school. The other options available to people that don't have much money are awful.

Potif Jun 06, 2018 08:21 PM
Long Term Care Insurance Premiums

My relatives, are in New Jersey, North Carolina, Seattle, and Alaska. Sadly, that won't work for me.

CRAM Jun 06, 2018 02:42 PM
Long Term Care Insurance Premiums

As is true with most insurance like LTC insurance you basically have a few options. Drop the plan. Contact another company but for the same coverage the cost is going to be the similar or will soon be similar. Contact the your company or another company and lower your benefits to get the cost of your the policy down to a point you can afford. These policies are sold because they are a good deal for the insurance company and the person selling them. What is happening to you is part of the business plan. They hope you'll pay during the years you are very unlikely to need the policy and drop it because of price when you get older and are more likely to use it. If you run the numbers at the start you'll often find it is best to not buy any insurance that has a fixed payout and just save and invest the premiums. This is not always true but it is most of the time.

PitMix Jun 06, 2018 01:03 PM
Long Term Care Insurance Premiums

The whole health care system is crazy, and this is just one more insane piece of it. The most successful systems in other countries have heavy government involvement to lower drug prices and take out the profit element. But the HMOs and insurance companies have bought and paid for Congress, so it is very difficult to do anything about it. Where is the AARP in all of this?

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