Long Term Care Policy?

Question

I am 68 and in perfect health & look to be 55. I have a long term care policy with Bankers Life that I have had for 8 years now. It is a 5 year policy with a 60 elimation period I have an agent that I got my supplement plan with and he thinks I need to get a life time long term care policy with a 30 day elimation period. I was told by my first agent of 8 years ago that you generally die within 5 years of being in a nursing home & this agent I have know disagree's. Which way should I go? The new policy is a $1,000 more a year & yes I can afford that.

Answer 1

Bankers Life???? that should be your real concern.  Get an A rated or higher company.  The life / LTC policy is not a bad idea.  Make sure the policy is from a highly rated company.  The insurance is no more than a promise.

Answer 2

I would go with the longest elimination period that you know you can comfortably afford.  I prefer to recommend a life benefit as well.  But you have to decide for yourself.

Answer 3

i lika......do......da cha cha

Answer 4

I'd be more concerned about Banker's life than the policy.  They're a Conseco company and B-rated and actually filed bankruptcy a handful of years ago (if memory serves).  It's obvious he's just trying to sell you a new plan, but if you're going to buy a new plan you should get one from a better company.

Banker's agents can only sell Banker's plans.

Answer 5

Well, there isn't enough information here.  Do you have the assets to pay out of pocket, for five yearsof LTC, if you need an additional five?  Do you have a spouse, that paying that extra $60K a year would reduce them to eating cat food?

Most people DO die, within five years of LTC.  Your current agent disagrees, possibly because he is trying to sell you something, where he'll make a big fat commission off of it.

Here is a little blurb from Consumer Reports on LTC:

When Consumer Reports has investigated long-term-care policies, it has concluded that they are too risky and too expensive for most people. For one thing, the annual premiums you must pay to keep the coverage in force can rise swiftly, making the policy prohibitively expensive even before you have any need for it. That means losing the money you've paid in, which you might otherwise have invested. In addition, a policy's benefits are likely to cover only a portion of your total expenses. And many policies come with catches that can keep you from collecting.

Our report, Do you need long-term care insurance? can help you decide whether you are one of the few who should consider a policy. If so, our report also provides criteria you can follow to choose the right coverage.

A couple interesting thoughts, they say:  1.  The average length of stay in long term care, is 2 1/2 years and 2.  90% of the people that enter LTC after age 65, are there less than four years.

I'm not going to tell you NOT to buy the new policy . . .I'm just saying, you probably aren't going to need it.

http://www.consumerreports.org/cro/money...

Answer 6

The average payout with a long term care policy is just under 3 years. However, people are generally living longer and the average is going up. There are people that do need long term care longer than 5 years. If you can afford the extra premium it may be a good deal.

The average daily cost in a nursing home is $177 per day. How long can you comfortably pay this $177 will determine the length of the elimination period.

The average policy sold today is 5 yr 90 day.