[aljetmet]

Originally Posted by RichieB

I really don't want my grand kids to starve. I have an American Express credit card that pays 2 %. I send the money to the grand kids 529 accounts.

I guess we can sell our TV house and use the funds for long term care or use a reverse mortgage. Both my wife and I have pre-existing conditions that preclude us from getting long term care insurance (I think) I'll have to inquire again, just to make sure.

[Hal :-)]

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.

[RichieB]

Originally Posted by aljetmet

I really don't want my grand kids to starve. I have an American Express credit card that pays 2 %. I send the money to the grand kids 529 accounts.

I guess we can sell our TV house and use the funds for long term care or use a reverse mortgage. Both my wife and I have pre-existing conditions that preclude us from getting long term care insurance (I think) I'll have to inquire again, just to make sure.

I don't want my kids or grandkids to starve either. Your AE card paying the 2% is a totally different issue, IMO. We've learned the hard way, and informed our kids that the Bank of Mom and Dad has closed. We have helped them out, but we cannot fund their everyday living. Sometimes they forget that their mother has a chronic illness which needs quite a bit of financial attention from time to time. At mention of this, their jaws drop in silence ! Hello !!

My wife wanted to get LTC and we investigated several plans through several companies. The general consensus was that LTC premiums were geared to providing benefits for 3 years in a nursing home. It is EASY to outlive these benefits ! Then what ?!!

also, you have to be careful in dealing with insurance people. Sometimes they do not have your best interests at heart - they have their own - in the form of COMMISSIONS !! Many sell you a policy that will take care of THEM and pay the highest commission. I learned this one the hard way, too.

In the end, bottom line, BE CAREFUL.


This was a form of venting for me, and I feel better !

[CaptJohn]

Very interesting discussion. I have enjoyed everyone's input. Good food for thought. Thanks.

[BostonCelt]

Originally Posted by RichieB

....My wife wanted to get LTC and we investigated several plans through several companies. The general consensus was that LTC premiums were geared to providing benefits for 3 years in a nursing home. It is EASY to outlive these benefits ! Then what ?!!

also, you have to be careful in dealing with insurance people. Sometimes they do not have your best interests at heart - they have their own - in the form of COMMISSIONS !! Many sell you a policy that will take care of THEM and pay the highest commission. I learned this one the hard way, too.

In the end, bottom line, BE CAREFUL.

A couple of big, big points there.

When it comes to insurance companies it's all about statistics, actuarial tables, and commissions. They are not public service, their purpose is to take your money out of your pockets and put it in theirs for the benefit of their investors (which could be you and me maybe!)

Always, ALWAYS ask the broker how he's to get paid. If his income depends on your financial decisions, be careful. If he's paid whether or not you sign up, you're obviously safer. That's why annuities are always a no-no to me.....the salesperson (he's NOT a financial advisor, he's a SALESPERSON!) gets 8.5% commission the minute you sign so, tell me, whose financial interest does he really have in mind?

[LisaJ]

Thank you for this post!!! Hubby and I are currently researching long term care and trying to decide what to do. Does anyone have any advice on putting your assets in a trust? I'm told if your assets are in a trust they can't touch your assets??? Not sure how reliable this information is and would love to hear other opinions.

[RichieB]

Originally Posted by BostonCelt

A couple of big, big points there.

When it comes to insurance companies it's all about statistics, actuarial tables, and commissions. They are not public service, their purpose is to take your money out of your pockets and put it in theirs for the benefit of their investors (which could be you and me maybe!)

Always, ALWAYS ask the broker how he's to get paid. If his income depends on your financial decisions, be careful. If he's paid whether or not you sign up, you're obviously safer. That's why annuities are always a no-no to me.....the salesperson (he's NOT a financial advisor, he's a SALESPERSON!) gets 8.5% commission the minute you sign so, tell me, whose financial interest does he really have in mind?

well spoken !

[BostonCelt]

Originally Posted by LisaJ

Thank you for this post!!! Hubby and I are currently researching long term care and trying to decide what to do. Does anyone have any advice on putting your assets in a trust? I'm told if your assets are in a trust they can't touch your assets??? Not sure how reliable this information is and would love to hear other opinions.

An awful lot of personal circumstances involved there so, no matter what you hear, don't minimize the value of a good Estate Planning/Medicare/Medicaid attorney. Money well spent.....

[aljetmet]

Originally Posted by RichieB

I don't want my kids or grandkids to starve either. Your AE card paying the 2% is a totally different issue, IMO. We've learned the hard way, and informed our kids that the Bank of Mom and Dad has closed. We have helped them out, but we cannot fund their everyday living. Sometimes they forget that their mother has a chronic illness which needs quite a bit of financial attention from time to time. At mention of this, their jaws drop in silence ! Hello !!

My wife wanted to get LTC and we investigated several plans through several companies. The general consensus was that LTC premiums were geared to providing benefits for 3 years in a nursing home. It is EASY to outlive these benefits ! Then what ?!!

also, you have to be careful in dealing with insurance people. Sometimes they do not have your best interests at heart - they have their own - in the form of COMMISSIONS !! Many sell you a policy that will take care of THEM and pay the highest commission. I learned this one the hard way, too.

In the end, bottom line, BE CAREFUL.


This was a form of venting for me, and I feel better !

My remarks were sort of tongue in sheet expressing that we ( retirees) give money to our kids and grand kids and not the other way around.

[Hal :-)]

Originally Posted by BostonCelt

...... That's why annuities are always a no-no to me.....

Commonly stated, Annuities are Sold, not Bought.

[RichieB]

Originally Posted by aljetmet

My remarks were sort of tongue in sheet expressing that we ( retirees) give money to our kids and grand kids and not the other way around.

It's hard to tell, from behind the keyboard. I understand what you said.

Having said that, I stand by my comments. I mentioned that the current generation of parents are the "I want it now" generation.

Respectfully submitted......

[Hal :-)]

Originally Posted by LisaJ

Thank you for this post!!! Hubby and I are currently researching long term care and trying to decide what to do. Does anyone have any advice on putting your assets in a trust? I'm told if your assets are in a trust they can't touch your assets??? Not sure how reliable this information is and would love to hear other opinions.

Thar's a very good question. To protect assets from Medicaid I think you have to completely give up control, i.e. non-revocable trust. This is different from a Living Trust, which does little more than avoid probate.

I have meticulously defined beneficiaries on financial assets which trumps a Will. My homes are the only major asset hanging free and I keep hoping for legislation to allow Beneficiary Deeds in my states. I'll keep hoping, maybe some day.

[Midge538]

Originally Posted by Hal :-)

My homes are the only major asset hanging free and I keep hoping for legislation to allow Beneficiary Deeds in my states. I'll keep hoping, maybe some day.

For real estate, quit claim deeds could be drawn and in Florida a beneficiary deed can be executed.

[Hal :-)]

Originally Posted by Midge538

For real estate, quit claim deeds could be drawn and in Florida a beneficiary deed can be executed.

I'm not ready to turn over my property with a quit claim. And a Google search says that Florida does not allow real estate to be transferred with a transfer-on-death deed, which is what I meant by beneficiary deed. But hopefully someday. Some states have made it available and I assume it'll spread.

[NJblue]

For those who have LTC insurance, what safeguards are there that the premiums won't rise to the point that they are unaffordable or at least so high that had you known that they would have become so high you never would have purchased the policy? My fear with policies of this sort is that you could pay the premiums for 20 years without missing a single one, but at some point the premiums may become so high that you decide to give it up - and watch all of your premiums paid go down the drain. The insurance companies know that you are loathe to watch this happen and hence are fairly free to raise your rate to whatever they want and the captive market will have little recourse but to pay up.