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My husband is a retiree of our state government. One of the options we took for me was an approved LTC insurance company that offered policies. Perhaps you may have a similar work relationship with a company. A friend who was a financial advisor suggested that I buy as high of level I felt we could afford so we wouldn't need to be concerned about inflation upgrades for several years. He also suggested that we make sure it would cover home care as well as a facility.
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Reply to KPWCSC
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Bettysteam: Pose this question to your attorney.
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Reply to Llamalover47
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Ask at www.bogleheads.org. Excellent financial advice.
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Reply to BarbBrooklyn
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When assessing the value of a long term care insurance policy, especially when you’re wary of relying on customer service, it’s essential to take a structured independent approach:

1. Understand the Daily Benefit Amount.
Determine how much the policy will pay per day (or month) for care. Compare this to the current cost of care in your area (e.g., nursing home, assisted living, or in home care). The daily or monthly benefit should closely match local care costs.
2. Benefit Period.
Consider how long the policy will provide benefits. (e.g., three years, five years, or unlimited). Multiply the daily benefit by the length of time to assess total potential payouts.
3. Inflation Protection
Policies with inflation protection will increase the daily benefit over time, keeping up with rising care costs. This is critical, especially if you anticipate needing care many years from now.
4. Elimination Period
The elimination period is the waiting time before benefits begin (typically 30 to 90 days). A longer elimination period means lower premiums but requires you to pay out of pocket initially.
5. Coverage for Different Levels of Care
Ensure the policy covers a broad spectrum of services (e.g., home care, assisted living, nursing home care). The more comprehensive the coverage, the better the value.
6. Premium Stability
Research the insurance company’s history of raising premiums. Some companies increase premiums over time, which can make policies less affordable in the future. You might want to consult an independent insurance agent or financial advisor to analyze this.
7. Financial Ratings of the Insurer
Verify the insurer’s financial stability through ratings from agencies like A.M. Best or Moody’s. A company with a strong rating is more likely to honor claims years down the road.
8. Compare Multiple Quotes
Use independent brokers or online comparison tools to gather quotes from various companies. This ensures you’re getting the best deal without relying solely on one company’s customer service.
9. Policy Exclusions and Conditions
Carefully read through exclusions and conditions under which benefits won’t be paid. Make sure you’re comfortable with the terms before signing.

By taking these steps, you can independently evaluate the policy’s value without relying heavily on potentially unreliable customer service. Consulting a financial planner specializing in long term care can also be invaluable for an unbiased perspective.
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Reply to HaveYourBack
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Insurance companies are rated just like banks. So look up their financial rating. There are also people whose job it is to explain LTC policies to nursing homes. Do some google searches for your state. Call your state's licensing dept and ask them. Do not use anyone you do not trust. If you have a policy already and don't trust your agent, ask for a new agent. Sometimes the website for the insurance company explains the policies they offer and the terminology.
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Reply to CareforMominTN
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Imho unless you are in your 40’s or younger, getting a LTC insurance policy with premiums to be paid is not affordable. The premium costs will increase as you age and often astronomically to the point that sadly for many it is not affordable so cancels.

There is a somewhat newer approach to doing LTC Insurance and that is a “hybrid” policy that can be used for both as LTC Insurance & as Life Insurance (permanent life insurance not Term). If I’m not mistaken, it’s a buy-in, so to get the underwriting done it will be an in full upfront initial payment. Like $200,000 or more. Tends to be done by those getting a huge lump sum payment upon retirement or company downsizing, so they have six figures to do a hybrid without affecting their regular living expenses. New York Life underwrites these.
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Reply to igloo572
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igloo572 Sep 23, 2024
Like to add as the hybrids do life insurance part as “permanent” and not “term”, so they are not going to be at all ok should LTC Medicaid ever be considered.
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Bettysteam, welcome to the forum. Some people like long-term-care polices, others do not. Is this policy for yourself, or for your mother?


If for your mother, read the fine print that says when the policy will become active. Some policies only become active two years after signing up. Some policies will only give out 2 or 3 years of payments, or stop when the maximum was used. Here's another good read on LTC policies www.kiplinger.com/retirement/long-term-care-insurance/things-you-should-know-about-long-term-care-insurance


My only experience with LTC was my boss, who was 85 years old at the time (he could run circles around anyone 20 years younger) who every year would grumble about the annual policy cost. His last payment was over $6,000. He never got to use his LTC policy as he died during covid in 2020 and was gone within a week. Now, if he would have put all those policy premium costs into an investment, he probably would have had more money when the time came to use it for long term health care, or would have passed onto his heirs when he passed.
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Reply to freqflyer
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https://www.aarp.org/caregiving/financial-legal/info-2019/when-to-buy-long-term-care-insurance.html

If you read this article you will find that at 65/female the average cost of a LTC policy will be about $5k per year. The older you are when you buy the policy beyond 65, the premium price goes up exponentially.

Nerdwallet.com has some good articles about LTC.

Another good resource is Bogleheads.org, which is a public forum much like this one. Ask your question there.
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Reply to Geaton777
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Your mother is 92. Does she currently HAVE a long term care policy you want info on? Because if you don't trust the company itself to provide accurate info, I'm at a loss as to who you WOULD trust. You can hire a lawyer to interpret the fine print, at your expense, but bottom line, the ltc company is the one who approves or disapproves the payouts.

Imo, you're best off getting the details directly from the insurance co and going from there.
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Reply to lealonnie1
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Not trusting is an excellent place to start on long term care policies.
It is CRUCIAL to read all the fine print as they are tricky and getting trickier. For instance some policies demand that there be an RN presence in the facility. Guess what, there never is. There may be one on call, checking medication orders, but that's it.

These policies get more and more expensive as you age and are nearer to needing them.
Sometimes these policies preclude your getting needed care help from the government as they provide a monthly stipend that raises your monthly income but that at the same time is not enough to cover your care.

There are many who love LTC. I am not myself a fan. But it's a decision I hope you will discuss with a good financial planner.

As to LTC, be very very careful. I would say the same thing about reverse mortgages. For some they are truly a godsend and they worked well for my own MIL. For others, not good. It is up to you, after all the information you can gather, to try to make your own best decision.
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Reply to AlvaDeer
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ElizabethAR37 Sep 25, 2024
We bought our LTC policies over 25 years ago. It seemed like a good idea at the time. Now? I'm not so sure, but we've sunk so much into the premiums that it would seem nothing less than foolhardy to cancel just as we are more likely to need the payout at ages 94 and 87.

The already high premiums took a big jump a couple of years ago. The company offered a cash buyout for an amount that wouldn't cover even one year in a care facility. We didn't take it but are now grappling with truly jaw-dropping annual premiums. Seems like a "Catch 22" situation.
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