3 Replies Latest reply on Aug 19, 2009 12:30 PM by jkom51

    LTC companies

      I bought a 10 year LTC policy for my wife and myself when I was 63. $500 per month and either of us can use any portion of the 10 years. This way we wouldn't be a burden to our children . TYhe problem is the company Gentworth might not be around when we need the insurance and all the monies would be wasted. Maybe betterto put the monies into CD's for future care.
        • Re: LTC companies
          vs_rolemodel
          Hi, coolbob, everyone.  I like to think of my LTC policy as protecting me in the here and now
          as well as the far-flung future.  That helps me take the sting out of the deal, especially with,
          as you mentioned, the  prospect of a company going out of business about the time in the
          distant future when I predictably, because of my age, will no longer be able to care for myself.

          Best wishes,
          vs_rolemodel 
          • Re: LTC companies
            jkom51

            Genworth is an excellent company and has a large LTC client base. They were one of the three companies my ex boss, a respected independent CFP, had me use to pull LTC quotes for his clients. He was impressed that my DH and I had bought LTC policies in our late 40's, through DH's state pension fund (in an independent partnership with an LTC carrier).

            There is always the risk, with private carriers, that they may not stay in the market niche. But Genworth (the old GE Capital Assurance) is as good as any, I would think. I tend to view insurance as risk mitigation, not risk elimination. Underwriting for disability and LTC insurance is now very, very 'tight', meaning that fewer people qualify for Preferred rates. If you drop your LTC policy, make sure you are able to self-insure for at least one spouse spending 12 months in a nursing facility or needing home health care. The amount will depend on where you live and what the labor costs are - here in the SF Bay Area, it is around $250/day for 8-hour care, and $75K for a decent licensed facility.

            Because frankly, if you drop your LTC insurance, I sincerely doubt you will ever be able to afford one again. We got ours about 10 yrs ago, and I know for a fact we couldn't afford to get new policies now. I'm pre-diabetic and overweight, my DH suffered a stroke 6 yrs ago. New policies would cost at least 3-4x what we currently pay.

            I figure I don't drive without auto insurance, and I don't own a home without homeowners and umbrella liability insurance. LTC insurance bought early is a cheap insurance against an emergency that could financially devastate our estate planning.

            Whatever you decide to do, the best of luck to you going forward.