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RedVanAnnie Asked July 2019

Is a limited Long Term Care Policy better than none if I cannot get the Plan I want?

Should I invest in a LTC Annuity that pays more limited benefits than other plans I like better but for which I do not qualify? I am finding it difficult to make a decision.

cwillie Aug 2019
I haven't looked carefully at LTC policies for a few years but casual reading implies that although they once were great they are rarely a good investment today; the insurance companies will use every loophole imaginable to keep from paying and unless you are starting at a young age the premiums will be very high.
RedVanAnnie Aug 2019
Thanks for your input. I agree a traditional LTC policy is not likely to be worthwhile. I have been looking at single pay annuities which pay monthly benefits toward LTC when needed. Unused funds go to heirs on death of client. Benefits would only cover about 1/3 of costs of full time care was needed, so I am reluctant to "lock up" that money. The major upside would be that money for LTC would be withdrawn tax free.

RVA
BarbBrooklyn Aug 2019
Red, there is a wonderful finance/investing site at www.bogleheads.org. There are some good threads on LTC insurance.
RedVanAnnie Aug 2019
Thank you. I did not know about this website.

RVA

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Tothill Aug 2019
You need to sit down with a financial calculator and someone who knows how to use it and do the math.

What are your options and how much does the plan cost? When I looked into LTC coverage for me, I determined that I am better off self insuring. The funds I would have put into an insurance plan combined with the return I could possible get, were not worth it to me. I would rather invest the cash myself and decide when the time comes how best to use my investment.

LTC is not nearly as expensive in CA as it is in the USA. We have more subsidized beds from what I can see, yes there are wait lists, but by the time I am aged, there likely will be fewer wait lists if any.
RedVanAnnie Aug 2019
I would not buy a traditional LTC policy but I have done some research on single pay LTC Annuities and Hybrids. I like the concept of these plans, but I am not able to buy the policies I liked best among the competitors.

Maybe USA will take some health care lessons from VS in the next few years.

RVA
JoAnn29 Aug 2019
How old are you. I think there comes a time when its too late to consider LTC insurannce.
RedVanAnnie Aug 2019
I am 76. An older age may not influence single pay LTC policies as much as it affects costs of a traditional plan.

RVA

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