Long-Term Care is Not Worth It...Except These 3 Hybrids

Did you know 70% of us will need this?! But, some still wonder, "Do I REALLY NEED long-term care? Is long-term care worth it? Can I self-insure? What does long-term care cover & how does it work?"

This long-term care 101 video will explain the 5 myths behind long-term care and why some, like

Dave Ramsey, feel it's not worth it.

You will also learn of 3 hybrid options that might be a better option for you, and never buy long-term care!

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CHAPTER MENU
00:00 Do I Really Need This & Can I Self-Insure?
01:00 Myth #1 Most Don't Need it & 2.5 years!
01:41 True Definition for Long-Term Care
05:55 GET THE RIGHT FACTS!
06:15 Myth #2 You Can Self-Insure!
10:50 Myth #3 Wait Until You're 60+!
12:14 Myth #4 Medicare/Advantage Plan Covers It!
13:32 Myth #5 Rate Increases Are GIGANTIC!
14:05 3 Hybrid Alternatives

LINKS:

#longtermcare #daveramsey #medicare #pensionhybrid #401k #kciis #kaichung

[dmjh]

Long term care insurance has changed in recent years because companies initially were selling low cost policies with weak underwriting. Therefore, they soon began to lose their butts with claims. Today there are fewer insurance companies writing LTC. The best has always been Mutual of Omaha. Lowest rates and good coverage. They started accepting applicants with one parent who had been diagnosed with dementia. Then a couple of years ago this changed and now if both of your parents suffered from dementia. You will be rejected. Most people discover LTC has become too expensive and the days of weak underwriting and get your money back riders are history. Generally I would avoid considering any LTC coverage until 60. But as I have stated in the past. ALL INSURANCE is based on your tolerance for risk versus your budget. It's always that simple.

[anaiachung]

Very informative. Thank you for taking the time to make these videos for us!

[karltitz]

I'm single, 72 and have group LTC since I was 50. It is the most important component in my life and financial planning toolkit to be able to take care of MYSELF as I age.

[tailiguo]

Very informative and exactly what I need to know, thank you for your expertise.

[jakejiang]

My mom works at In Home Support Service, and she often mention that people are begging for more workers because of how many people demands In home support services

[helenm]

In 2007 I purchased my LTC insurance through work for a reasonable monthly payment under $100 (I was in my early 50s). The agent told us that the rates would never increase and that we could take the policy with us when we left the company. In 2022 MetLife raised the LTC costs by around 120%. MetLife. Not some fly-by-night company. And, apparently there is an expected increase for 2024. I retired in 2023 and took the policy with me but I am pretty sure that at some point I'm not going to be able to afford it. It's only a 2-year policy. I don't think it makes sense to keep it; however, if I understand the small print, it seems that if I cancel before a certain date, I will not lose what I already put in.

[unovictor]

Our Hawaiian brother-in-law shared your link, we are looking forward to explanations of the 3 hybrids.

[kietro]

1:08 The 70% who need “some type” of long-term care includes people getting care at home from their relatives, correct?

[davidhill]

San Francisco Bay Area? I moved out of S.F. when I was 28. I am 70 now. Glad I left (real glad.) I have lived in several other states and over seas. When I see what is happening in the Bay Area.... I just shake my head. I live in Washington State now. I got my standard LTCI policy (John Hancock) at age 56. That age seemed to be the sweet spot according to Clark Howard back when I bought it in 2010. Today my wife and I would each collect $6900 a month for 5 years. Our policies have "inflation protection". Also one or the other of us could collect it for 10 years if the other spouse did not need it. Cost is about $200/mo each today which is affordable still. Time will tell how much it is raised, but the companies have to to thru out states insurance regulatory boards to get any increase. So far in 13 years it has been raised once by about 10%, but the payouts have got from $5K a month in 2010 to $7K a month in 2023 (due to the inflation protection that is part of our policy.)

[jakejiang]

My mom is an In Home Support Service worker and she always say that there are high demand of In home supports!

[kciis]

Have you heard about these 3 hybrid options for long-term care alternatives? Thanks for watching!

[bennri]

You'll need a Lawyer in order to force them to pay. That was my experience with my parents.

(father didn't use Lawyer, they didn't pay; for my mother I did use a Lawyer when I recognized CNA's shenanigans, and they paid. reluctantly.) Gotchas for LTC: many ways for them to avoid paying; limits by time; dead times (3mos normal); they don't pay 100% of those Assisted Living care. Or maybe newer contracts are different?

BTW, I completely agree with you regarding Medicare Advantage vs Medigap.

[justimagine]

Short term under 2 years LTC still way expensive. but long long term care over 2 years... wrecks a lifetime of wealth accumulation.

[dmoon]

Would you consider drawdown from a HECM as fitting your asset based category #3? (In those cases where your client owns a home?)

[davidleonard]

This video has some good general information but I still lean toward advising someone to self insure if they have the funds available. Whats not considered in this video is that money you have dedicated for long term care gets a return on it. For example if you had $490, 000 and were concerned that you may incur a cost of $70, 000 per year for care that your money ltc fund would be depleted in 7 years thats not quite correct because you can get dividend income on the $490, 000 that you can use to buy more shares of stock to create a larger fund and to create even more income.

[jameswerner]

IN the case of One America, however, the guaranteed returns (2.25 - 4.5 %) do not keep up with inflation, compared to the expected returns form a normal mixed portfolio.

[gilliandale]

Would there be any point in the 3rd plan if you don't otherwise need any more regular income?
Will try and see if this is covered in another video.
thanks for these, they are helpful !

[Savannah-edrv]

20 minutes of pretty much non information. It would have been nice to know are you talking about cash value life insurance are you talking about type of insurance that is long-term care but functions differently? It would have been nice to answer those questions instead of chit-chatting for 20 minutes

[cameroncunningham]

So basically this video is a pitch to buy LTC insurance

Given that a company may not exist or outright refuse to honor a policy you purchase. I’ll take my chances on self insuring

If you are disciplined enough to save for retirement then there isn’t a justifiable reason why you can invest for LTC needs

I’m in my mid 40s and invest for my future LTC needs

I have the following guarantees if I self insure

(1) I will have actual funds on hand to pay for my car vs hoping a company will exist or honor its contract
(2) I get to choose my investments for my LTC
(3) All of my remaining assets will go to my estate vs whatever death benefit is left after deductions for my care
(4) I don’t have to deal with an insurance bureaucracy in order to have care paid for or having to provide proof of need

[dmoon]

Whatever distinction you were trying to make at 2:05 regarding the definition of LTC doesn’t jibe. Qualifying for LTC due to inability to perform 3 or 4 ADLs while in a nursing home wouldn’t exclude that nursing home stay from the LTC statistics. What was the source for the 4% LTC statistics you quoted? I’d like to inform myself with a deeper dive, thank you.