[maybesomeday]

We choose policies from Northwestern Mutual Life (NML). There were several things we liked about these policies
1. Because both spouses bought policies after 7 years of paying premiums if one spouse passes away the survivors policy is "paid up" with no more premiums due.
2. The daily benefit we choose does rise each year and the premium rises by the same percentage. In our case both rise by 5%. We can stop this increase at any time and the premium will also stop increasing. Yes, it will get very expensive but predictably so.
3. If we decide that we no longer can or wish to pay any more premiums the policy freezes and all the money we have paid in is available as a benefit.
The big financial risk is really for the healthy spouse. A single person may be ok with watching the assets get spent, but if one spouse is in LTC situation the other still needs to live.
Having watched how quickly money goes when someone requires long term care we feel this is a good investment.

[BostonCelt]

Originally Posted by 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.

They'd be slitting their own throats, wouldn't they? Sure, they make a profit from current policyholders but they make the big bucks from selling lots and lots of future policies for a long time. If they raise premiums to the unaffordable level, that would pretty much close the doors, wouldn't it? Where's their future?

[Hal :-)]

Originally Posted by 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.

Your concerns are valid. A major reason I went with Hancock was they had been in the business a long time and never had a premium increase. They can only increase rates with approval and it must be for an entire class (I'm not completely clear how a class is defined). A year or so ago, Hancock requested an large increase (40% ?). My renewal in Nov didn't change but I don't know about next time.

When I bought, long term affordability was obviously a consideration. And I assumed they had enough experience to set premiums properly. Surprise, they screw up and the customer pays.

Basically, it sucks that they can go back on a legal agreement. It's a one sided contract. But that's the system. It's like those credit card updates you get in the mail all the time. You signed a contract but they keep sending new fine print every time they want to change terms. It's a joke.

[Floridagal]

My husband and I have Long Term Health Insurance since we were 52 years of age and we are almost 70 now and it has not gone up one penny. When I had hip replacement surgery many years ago they were going to send over a nurse to help me for awhile ant no charge, but I was doing good and rejected it. I think it is a good policy to have as you'll never know when you will need it. By our taking it out before 55 years of age we got a great premium and the company is very nice to deal with.

[Midge538]

Originally Posted by Hal :-)

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.

Hal ... The 'Florida Enhanced Life Estate Deed' is available and leaves full control of the residence to the occupant until one passes .. ergo, the home could be sold, gifted etc. It also insulates one from possible outside claims against the named beneficiaries ..... these are very liberal clauses and fairly unique to Florida. It also protects the homestead from the probate process. However, Florida must be your 'homestead, ' so if you have a declared homestead in another state you would not be qualified. For most of us full time residents, a 'Florida Enhanced Life Estate Deed' is a valuable document to consider; it provides for the future but surrenders nothing. M

[Midge538]

Originally Posted by Midge538

Hal ... The 'Florida Enhanced Life Estate Deed' is available and leaves full control of the residence to the occupant until one passes .. ergo, the home could be sold, gifted etc. It also insulates one from possible outside claims against the named beneficiaries ..... these are very liberal clauses and fairly unique to Florida. It also protects the homestead from the probate process. However, Florida must be your 'homestead, ' so if you have a declared homestead in another state you would not be qualified. For most of us full time residents, a 'Florida Enhanced Life Estate Deed' is a valuable document to consider; it provides for the future but surrenders nothing. M

But of course, use a lawyer or Certified Planner."

[Hal :-)]

Originally Posted by Midge538

Hal ... The 'Florida Enhanced Life Estate Deed' is available and leaves full control of the residence to the occupant until one passes .. ergo, the home could be sold, gifted etc. It also insulates one from possible outside claims against the named beneficiaries ..... these are very liberal clauses and fairly unique to Florida. It also protects the homestead from the probate process. However, Florida must be your 'homestead, ' so if you have a declared homestead in another state you would not be qualified. For most of us full time residents, a 'Florida Enhanced Life Estate Deed' is a valuable document to consider; it provides for the future but surrenders nothing. M

Thanks Midge. I'll keep that in mind. I'm a snowbird, but considering homesteading to get out from under the NY tax umbrella. This would be just another reason to move the residence. Maybe next year.

[hheinecke]

The insurance agent, Rosemarie over at Cebert Wealth is very helpful. Her Phone number is 352-430-3083. She represents different carriers and different funding options. John Hancock is one of the companies she represents. She also helped me with my Medicare Supplement. She is honest and knowlegdeable.

[LisaJ]

Just had a conversation with my 72 year old father regarding long term care insurance. He does not have any and does not believe in purchasing it. He claims all 4 of my grandparents did not use it, my mother who passed away at 58 did not use it and his brother who passed at 67 did not use it. He believes the money you spend on long term care insurance should be invested. My question is, what percent of people who purchase ltc actually use it? Any thoughts or advice?

[christina.campbell46]

I accidentally read ‘car insurance’ and was going to tell you about a great quote I got from the AARP car insurance estimate calculator. But in any case, if you’re over 50, you should look into the AARP and the discounts they offer on care insurance. It’s a great bargain.