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This is not a question, just info for anyone considering or wondering about Long Term Care insurance. I ran across this excellent video by Clark Howard.



Bottom line: the system is broken. Hope it helps someone.



I went into the settings and changed the speed to 1.5, because he speaks too slow for me and time is precious:



https://youtu.be/NNJaDrtglnc?si=oX1CTGe2N1AYMRZw&t=835

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Here is a discussion from www.bogleheads.org on this issue.

https://www.bogleheads.org/forum/viewtopic.php?t=428887
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RNs are rare as hen's teeth in assisted living.

Someone requiring an RN has moved on to a need of SNF or MC. There are often med techs delivering medications; they are trained in being med techs. There are seldom RNs.

As to investment stuff, way out of my pay grade. Barb always says Bogleheads is a great site and she may have the exact link for you. Would bet they have a ton of advice on that one. Lots of financial whiz kids. By the by I think it is www.bogleheads.org. AND they have a Forum!
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Yeah, I was thinking about a reasonable objective comparison measure such as the same X dollar amount the insurance would cost a person of X age/month, vs invested at the average S&P 500 rate over X amount of years.

I didn't know that RNs are rare at ALFs.
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Grace, the answer to your question: depends on how MUCH you invest and how good your investment choices are and how lucky you are in timing. That's what the world of savings is all about. You may be better off if you are smart, lucky and have good timing.

As to LTC insurance, my advice is to be very very careful. We have all learned to ignore the fine print and push "I agree" button on everything. A huge mistake on LTC insurance. Policies differ greatly as to what they consider when deeming whether or not you need to collect on your LTC (it isn't up to you often), and some LTC won't pay for in facility unless and RN is present. Imagine that! Because no matter how good your ALF, there is seldom an RN anywhere near other than on call.

So it is a matter of choice. If one is aged, then it is WAY TOO LATE to consider LTC. You not only will likely be refused, but you couldn't afford the premium.

Dave Ramsey has great radioland advice. And he always recommends being "self insured". Good on you if you are lucky enough to afford that. It is what we all strive for. But it takes a lifetime of, as I said, good timing, good luck, good choices, hard decisions. My brother worked all his life as a waiter. He ended his life with still a million he couldn't spend in his 80s. That was primarily because he made happy real estate decisions at lucky times, buying run down, bringing back to glory, reselling, buying another fading beauty in San Francisco. He did it because he loved to play with bringing them back, and got bored with them when they were lovely again, went looking for another fading beauty. He did so well with this, but it was also lucky times to do it. Fading beauties here now go for about 3 million. Too late to do that sort of thing. He was a child of his times, and a smart and lucky one.

I always think on things in terms of how much has to do with good luck and happy timing.
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So are you better off if you pay for long term care insurance, or if you invest that money in the market and then use it to pay for your needs in old age?
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Thank you!😊
I, also, will watch it later (and speed it up!). My father has paid for long-term care for at least 30 years and just dropped it🫨 now that he’s approaching 90! The premiums do go up every year and his went up 160% from last year.
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Clark Howard always had excellent advice. Sure do miss his TV shows as they were not only interesting but very educational.
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Going to save this for later listening.
As to the system, not sure which one you mean, the system for care (which has long been broken if it was ever a fix) or the one for LTC insurance, about which I often warn.

A) long term care insurance must be got early when it is affordable, but it is expensive and a whole lot of money often goes into it.
B) There are often limitations and restrictions on use of LTC insurance so that when an elder choose to avail themselves of it later in life they are told they aren't "ill or needy enough" or that the facility doesn't measure up because fine print stipulates an RN must be present (they never are in most facilities other than on-call. And etc. List long as your arm.
Those two along with a whole lot of other concerns. Sometimes the LTC can give a senior just enough in monthly funds to preclude their qualification for government aid from Medicaid, but not enough to PAY said facility. That can be a REAL problem.
I have seen many seniors (including my partner's mom) thrilled with either their Reverse Mortgages (in her case) and/or with their LTC insurance. Others have said that one or the other added to their woes.

Can't made the decision for others, but sure can recommend that people get all the information they can gather before making these decisions.
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