Just an FYI for those that have this type of insurance policy or have considered buying one.
As part of my financial planning, I purchased a policy 10 years ago so I could get a low premium due to my age. I have no plans of hitting the old folks home anytime soon, but due to my families health history I wanted to have things in place should I ever lock up and need long term care.
I just received a letter from John Hancock notifying me that my premium will be increased by 90% due future expected claims on my type of policy. The increase was approved by the Washington Insurance Commission.
Here is a link that shows the average daily, monthly and yearly cost for care on a per state basis. Just click on the map to look at each state.
http://www.jhinfocenter.com/cost-of-care.aspx
I thought folks might find this info useful about the cost of care in each state and potential future increases in your LTC policies.
SF

That's not even close to being in the cards for me. If I ever get to that kind of shape my instructions to my kids are to take me fishing and help me wade out a little too deep. But they're supposed to grab my rod before giving me that final shove.

Amen, Salmo. Kind of like the Eskimo approach of shoving you out on an iceberg. I need to have that talk with my kids.

AM,
I did think it through and my decision was based mainly on what my family members had experienced.
I agree these policies aren't for everyone but health and long term care aren't getting any cheaper.
Not everyone that needs care is on their death beds either. I have an uncle who functions OK, but still needs daily in home care.

Salmo & Eddie,
Just add a health care directive to your will. Having it in writing will make things easy for your families when the time comes to pull the plug, hit the river, order an iceberg or start up the Stang....

Aunty, if she bought long term care insurance, why didn't she use it?

Fish on...

Todd

Too bad she wasted all that money on insurance, then...but I guess there's a chance that she may have needed care that you and the nurses were unable to do, so she may have needed it after all.

Getting old and having to pay for it sucks.

Fish on...

Todd

Can we look at this from a different angle?
example: My mom has been diagnosed with advanced dementia. This hit the entire family off guard about a year ago. we had noticed some issues but she seemed to be fairly normal, repeating the same questions, forgeting certain things but was otherwise doing ok.

through a series of unfortunate events (no, not the book series) we were forced to take action and get her checked out. since then she has gone down hill fast....

ok, I'll get to the point. the problem is that it is literally killing my dad taking care of her. she has digressed and will continue for several years. I do not see my dad being able to hang on at the age of 73...
they do not have long term care..... care facilities will quickly drain what savings and retirement he does have. he has meet with a lawyer to try to seperate funds and what not.....

AM,
I didn't make my decision based on a google search or a newspaper article. I did so based on what I felt was the best choice for me.
Once my mother passes, it will just be me and my older brother. Based on family history, I'll be checking out sooner then he will.
I don't want him to burden to look over me.
It sounds like your MIL passed quickly. What if you had to care for her for say two or more years?

I've always been a saver, but it would take a long time to save up enough money to cover the cost of care over a long period should I need it.
My 86 year old neighbor just died in his home. He needed 24 hour live in home care for a little over two years. When I spoke to his son recently, he mentioned the out of pocket care cost over that period of time was close to 100K. He also mentioned his dad saying he wished he had been able to pass that money on to his kids rather then spend on his own care.
I also want my long LTC policy to preserve the money I wanted to pass on to my brother and friends.

Do you have homeowners or healthcare insurance?
Since you drive, you must have car insurance as well.
Are you concerned that all insurance companies won't pay your claims either or is it just LTC policies you don't trust?

Moby,
One of my other neighbors was diagnosed with early stage dementia at age 54.
His wife did exactly what you mentioned in regards to meeting with attorneys and separating their funds.
It got to the point she couldn't care for him any longer. He was in a care facility for 7 1/2 years before he passed away. It would have drained his wife financially to pay for his care.

I did a good job of planning out my retirement; but somehow didn't give much thought to LTC. So, when I went to buy it at age 55 with heart disease, well, I think I would rather apply the money to a yacht instead. Too expensive.

My plan; launch my boat at Lapush with me tied to the seat and the T-8 tiller locked on due west with both downriggers and rods down as well as two other trolling rods (who cares about that one rod limit now) and let me go at trolling speed. Also an IV of good Scotch in place. Oh yeah, you can remove the bib now.

That is what we are afraid of. very sad situation all around but you do have to take the spuse under consideration. It is easy to say that I would take a long walk off a short peer or whatever but not everone is inflicted with terminal cancer and can make that decision for themselves.....

I have been through thisg three times with various
Family members. In each case they were placed in
high quality facilities until their life savings were gone.
It goes fast at $6,000 a month. Then they had to go to
fair facilities that take Medicaid.

+1000

My sister and I do what we can but is hard. Together we are paying for a house cleaner so at least that will be off his plate. we try to take her out to give him some time to "relax" so to speak but after an hour or two she become agitated and starts asking for him.....

Big Moby,

Been there. its simply awful I don't know what's the worst, but it sure hurts to see a once bright, vibrant person you love suffer through he degradation of dementia.

Gotta agree. Mom was an ALS victim. She deserved better than that.
Her savings and insurance barely covered the care required. I wonder
if Obamacare would have been better. I suspect not.

Just a quick update on this old thread. I know someone isn't here anymore who was pretty vocal about LTC in this thread. Her posts have been deleted but most of the stuff she said was total [Bleeeeep!] in regards to LTC not paying claims, at least in my experience.

I have POA over a family member that has a LTC policy and was recently diagnosed with dementia.
There were a few hiccups and frustrations along the way but she is now getting her care paid for...which isn't cheap.
Based on her policy, if her care cost levels were to remain the same, she'll have six years of paid care. I'm sure care costs will increase as her disease progresses, but getting her a LTC policy was one of the best moves for preserving family wealth.

Her LTC annual premium was less then one months care.....
Just food for thought as you consider family financial planning and I don't wish dementia on anyone's family members. It is a tough disease to see firsthand.
SF

Was it Manty?

Yo Stoney - I should probably find out more about that. My moms is getting up there in age and this could be needed in the future. She's doing great now on a limited fixed income, but you never know what tomorrow will bring. Shoot me a PM with some details please. Gracias.

Same experience here currently with a family member......painful process for sure (east coast time, phone call wait times, 100-day elimination period), but the benefits will cover about 61% of the monthly care.