Do YOU Need Long-Term Care Insurance?

If there’s one thing that can throw off a great financial and retirement plan, it’s the cost of long-term care. Do you know if you can afford to self-insure for long-term care? How might this affect your family? Learn how to determine if long-term care is needed, and what your coverage options are.

0:00 Introduction
1:15 What Is Long-Term Care?
1:53 What Does Medicare Cover?
2:19 Why Would I Need Long-Term Care?
2:53 Key Statistics
3:29 A Woman’s Risk
4:02 The Cost of Care
6:21 LTC Analysis
6:44 Tips to Avoid Insurance
7:30 Qualifying for Insurance
8:02 Traditional LTC Policies
9:16 Reimbursement vs. Indemnity
10:02 Flaws of Traditional LTC Policies
10:20 Hybrid Policies
12:24 An Epiphany

Sources:

POPULAR RETIREMENT VIDEOS:
1) How to Invest Once You Retire- The Bucketing Strategy:
2) The 5 Biggest Expenses in Retirement:
3) Can You Retire On $1,500,000?:

Opinions expressed herein are solely those of URS Advisory. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your financial adviser or qualified professional before making any financial decisions.

#longtermcare #longtermcareinsurance #retirementplanning #investing #howtoretire #retirewithjulia #electionyear #stockmarket #financialplanning #incomeplanning

[RetirementTravelers]

Great video! You explained this so well.

[rick_vv]

I am 65 and purchased a hybrid life policy with LTC coverage with a 3% inflation rider 2 years ago. If I never use it, it will pay a death benefit to my heirs which is little more than the original premium. I did not like the idea of paying monthly premium for traditional forever with no protection on increases. Hybrid LTC seems like the best way to go.

[ericklarman]

Very happy I purchased my LTC policy at age 43. At the time, the premium was $67 per month for a nice plan - now, 15 yrs later the company is raising my rates over the next 5 years and then guaranteeing it will stay at $120 per month for the rest of my life. I am very happy with this offer. I would recommend people in their 40s to buy a stand alone policy from a AAA mutual company. The policies now offer dividends which are applied to your premium in future years.

[rafs]

Very timely, just got some info on this from my advisor and not sure where to start. This helps, thanks!!

[peterblanchette]

I have had a NYS LTC Partnership policy since 2008. The premium over that period has increased at less than a 3% annual rate over that 16 yr period. In NYS I am allowed to apply a tax credit against the state taxes that I owe in a year using an amount of up to 20% of the amount of my yearly LTC premiums.

[richdewitt]

Julia, Well done, presented clearly in terms folks can easily understand. Also a lot of info in just a 13-minute video--(others would stretch 30 min and still not cover that much ground). Rich

[peterblanchette]

I just listened to your video on LTC. You did not talk about LTC insurance partnerships with the states(about 47 states participate). These policies are less expensive and allow the policyholder to protect more personal assets than a policy purchased directly from an insurance company not participating in a state LTC partnership policy.

[JoeC]

nice info.. thanks.

What about term insurance with living benefits? (chronic, critical and terminal illness covered)?. Arent they cheap?

[carlos-dtni]

Great information again Julia. Do you still recommend hybrid ltc policies since they are not covered under state partnership plans? I hope the government will change that one day soon.

[streetpilot]

We were looking at hybrids but at 65 yo they are insanely expensive. I ended up with an LTC plan at $800 a month for the both of us. 360K max payout with no inflation increase. Not sure if this was the best choice but it was the cheapest. I also heard that if there is a waitlist at a care facility, those with LTC insurance go to the head of the line. Any truth to that?

[rukiddingmeNJ]

Everyone needs LTC insurance and hybrid is the best option.

[HighCountryRambler]

Why not invest that same cost when your young, then use it for LTC if needed when you get old, if not have a million extra dollars when you retire...?

[michaelsd]

I'm struggling to see the ROI you mentioned on your example of Mike @55. The premiums were $3k/month for life ($36k/yr) and the payout was just $5k/month for 5 years. So the total benefit is around $300k which Mike will have paid that amount in premiums by age 63. So basically the $36k/yr in premiums Mike pays after age 63 is all gravy for the insurance. Am I missing something? Do Mike's premium stop after a set period? Plan B: invest in a Health Saving Account account early and often. The HSA should easily grow over a 30-40 period to to +$400k and any $$ left over can go to ones heirs.