I promised an update on long term care (LTC) insurance. I'll start with a story. After my mom died I received a letter saying: We are sorry your mother is dead. Until you send a death certificate proving she is dead, we can't pay any further claims for any period before she died.
The LTC insurance carrier was relentless in their efforts to delay and deny coverage under the policy. I was even more relentless in response.
My mother paid premiums since 1992. She received more than she paid in but her financial return was terrible. It was not a wise choice.
Was the reimbursement available when she needed it? No. It took four months to receive a penny.
What would she have received if she didn't have someone like me relentlessly making sure they fulfilled the promises under the LTC insurance policy? Nothing. Zip. Nada. Not a penny.
4/ Should you buy long term care (LTC) insurance?
If you do, you are saying to someone: "Hey after I become incapacitated and need services like skilled nursing it will be up to you to fight a battle with this insurance co and it will consume scores, if not hundreds, of hours."
5/ It is expensive to be old and then die. People are often shocked at what it costs to: (1) live in assisted living and (2) move to long term care. The last year of life is particularly expensive. The life estate for (1) was a good value in my mom's case. https://www.genworth.com/aging-and-you/finances/cost-of-care/cost-of-care-trends-and-insights.html …
6/ "The price for a couple both age 55 purchasing new long-term care insurance coverage can be as little as $3,000 or as much as $6,300 for virtually identical insurance." https://www.aaltci.org/news/long-term-care-insurance-association-news/2020-long-term-care-insurance-price-index-released-for-age-55 … "The spread for virtually identical coverage was typically just over 100%."
"The average annual premium for a 55-year-old couple was $3,050, the same as the prior year. For a single male, age 55, the average cost reported is $1,700. For a single female the average cost going into 2020 is $2,650." https://www.aaltci.org/news/long-term-care-insurance-association-news/2020-long-term-care-insurance-price-index-released-for-age-55 …
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