Long term care insurance for 80 year olds?

[Mrs. Dinero]

Hi all, my parents are in their 80s. They’ve held long term care insurance for 20 years. Premiums over the last 20 years have cost them over $60k. Dad is questioning whether they should continue or not. He keeps hearing horror stories that they won’t pay claims or a person must jump through hoops to get the help needed. Is it a better idea to pay out of pocket when and if it’s needed? Any thoughts would be appreciated.

[CCL]

I think that depends on the actual policy he has, what company it's thru and benefits it offers. Other considerations are the amount of money he has available to pay long-term care expenses and the reasons he took it out in the first place. Does he have a strong family history of debilitating illnesses, for instance?

Does he have any other insurance that might cover some of the expenses? Our life insurance, for example, has a rider that pays out 50% if diagnosed with certain conditions.

[Mrs. Dinero]

“depends on the actual policy he has, what company it's thru and benefits it offers” Company keeps getting bought. He’s been following and doesn’t like what he’s reading.
“Other considerations are the amount of money he has available to pay long-term care expenses” They have funds. Would rather leave inheritance. Just told him last night that it’s his money and none of us are counting on it.
“reasons he took it out in the first place. Does he have a strong family history of debilitating illnesses” He took it out for insurance to cover what ifs. No history of illnesses. Longevity in family for both parents.

“Does he have any other insurance that might cover some of the expenses?” I need to ask. Thank you

[tractor]

What's his likelihood of needing to use it? Here's one data point that probably won't be helpful. My mothers husband died on Sunday. He also had a long term care policy, spending 10's of thousands of dollars on it.

He lived comfortably at home until fours days before he died at 90, the policy required 100-days of nursing care before coverage kicked in...so other than the comfort of knowing it was their, he received no benefit from it.

He had plenty of resources to cover his needs (30-years in the Navy, +20 years in government service), and based on his family history, he probably didn't need the policy (hindsight is 20/20, they say).

[Bonny]

I'd check to see if they can't already use it now.

My MIL has been using hers for years. First thing is that if she's using it the company suspends them needing to pay premiums. Her policy allows for things like house cleaning, pet care along with personal care and meal prep. I even think it may have covered some yard care.

The company does require a quarterly check-in. Pre Covid I believe someone visited the house but I think now is all by telephone.

I'll be the first to say my MIL probably abused the policy in the early years but now truly needs it. Your parents should take advantage of this policy if they can. There's no point in "saving it for a rainy day" unless there are lifetime policy limitations. 

[wvugurl26]

I think it all depends on the policy/company which of course isn't very helpful. It seems some people do get services for which they've paid premiums for and others get denied and are out tens of thousands of dollars with no services.

I guess the trick is to read the policy and try to understand how they determine coverage.

The federal government has suspended new enrollments to their long term care program for the next two years. I guess they think the premiums aren't high enough.

[azucena]

I'm fairly familiar with companies writing those policies, throw out a name and I'll opine.



Along with the company longevity, it's all about the waiting period and the definitions as to what is covered and for how much



Bonny - your MIL's policy was likely written 10+ yrs ago. Not many, if any, carriers covering all of that these days as the LTC portion alone was underpriced.

[Bonny]

Jan 10, 2023 15:19:23 GMT -5 azucena said:

I'm fairly familiar with companies writing those policies, throw out a name and I'll opine.



Along with the company longevity, it's all about the waiting period and the definitions as to what is covered and for how much



Bonny - your MIL's policy was likely written 10+ yrs ago. Not many, if any, carriers covering all of that these days as the LTC portion alone was underpriced.

Yup, probably around 30 years ago now. She bought a "Cadillac" policy and has gotten her money's worth and then some. But I think it's still capped at some daily rate. In order to stay in her home she really needs 24 hour care but the policy is only paying for 12 hour care. Despite the fact she has plenty of assets she's still insisting she doesn't need "care". It's for her (four!) dogs. 

While not ideal, it's much better than having her live with us!