John Hancock here too. My parents had 4 Yr LTC policies. Older plans with no COLA. Mom spent over 7 years in nursing home. Dad paid more than half the cost during the first 4 years. Then had to "spend down", paying all the costs. He passed with esophageal cancer and only a couple weeks in a nursing home. A lot of years of premiums for little benefit.
You'd think that would turn me off to LTC. But I still bought it. Two reasons. Flexibility - Dad wasn't happy with Mom's first home. Being private pay he easily moved her elsewhere. Secondly, I purchased a "Partnership" policy in NY. My assets are 100% protected. I don't believe this is available anymore. Partnership plans now only protect assets to the extent of coverage.
I recall the theory was you don't need LTC until you have a certain net worth, say 200K. And if you have a high net worth, say more than 800K, you can consider self-insuring. Like all insurance, there's a good chance you'll never get a return on your investment.
BTW, LTC protects assets for the kids and if you make the premiums, you are essentially taking it from their inheritance.
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