I keep hearing about what a high percentage of people will need "long term care" at some point. But being in need of that TYPE of care isn't always really long term. Both of my parents died of cancer, and neither would have been eligilbe to use ltc insurance for more than a week or two before they died.
I’m so sorry to hear about your parents. You are correct, not all LTC insurance is made equal. Different policies will cover different things, have different elimination periods, etc. - Alex
Something to think about: $600,000 might be a lot of money today, what will it be worth in 40 years after inflation? What will the average monthly cost of care be in 40 years? - Alex
High impact - likely to occur is not reasonable to buy insurance for because insurance companies are not dumb and are not going to lose money on something that is likely to occur.
They aren’t dumb - that’s why they price their premiums accordingly. But many actuaries underestimated how many people would need LTC, how long people would be on claim, and the total cost. Therefore insurance companies went back to folks with policies - and for traditional policies folks needed to pay increased premiums to maintain coverage.
I keep hearing about what a high percentage of people will need "long term care" at some point. But being in need of that TYPE of care isn't always really long term. Both of my parents died of cancer, and neither would have been eligilbe to use ltc insurance for more than a week or two before they died.
I’m so sorry to hear about your parents. You are correct, not all LTC insurance is made equal. Different policies will cover different things, have different elimination periods, etc. - Alex
Most people will Never qualify for the payout. You have to practically bed ridden or you can't control your bowels.
they keep jacking premiums with state insurance board approvals
Avg premium $3,600 per year, if purchased at age 50 and not used for 40 years
, invested at 6% for 40 years would yield almost $600,000 self insured
Something to think about: $600,000 might be a lot of money today, what will it be worth in 40 years after inflation? What will the average monthly cost of care be in 40 years? - Alex
Spot on
@@onedegreeadvisorswhat are the chances that he meets at least 2 of the requirements to not be denied?
High impact - likely to occur is not reasonable to buy insurance for because insurance companies are not dumb and are not going to lose money on something that is likely to occur.
They aren’t dumb - that’s why they price their premiums accordingly. But many actuaries underestimated how many people would need LTC, how long people would be on claim, and the total cost. Therefore insurance companies went back to folks with policies - and for traditional policies folks needed to pay increased premiums to maintain coverage.