Long Term Care Insurance 101 - Cost, Benefits, Features

This is everything the average investor needs to know about long term care insurance.

[cherylcampbell]

Genworth policy I bought at 50 years old. $40.00 a month. Went up to $65.00 a month and now $98.00 a month and I’m 72 and good health. $200, 000 now worth $400, 000. Pays to start early when your healthy. Only bought the policy in case of stroke or some disability. I’m still working part time. Take care of your health because it’s all that you’ve got.🙏🙏👍

[clancylittleboy]

Joe, you do not talk about ONE IMPORTANT THING about long-term care policies. You do not say how often and how much the monthly premium will go up. Sure, if you buy at age 50 with no medical problems, it is cheap. But after a few years, the rate will go up. Often it doubles in the first 10 years. That gets you to age 60, still a long way from needing care. Then the rates start going up each year, doubling again by age 62. Bad, huh? No, you haven't seen anything yet. Now they start doubling about every 2 years. Finally, as you approach age 80 and might actually NEED some care, the monthly rate becomes so high that you may not be able to pay it, unless you have piled up millions in savings. Just as planned by the insurance company, before you need it, you will cancel it. What kind of deal is that? It only makes sense if you get a price guarantee along with the initial insurance contract. Otherwise you are buying a pig-in-a-poke that you won't be able to afford at the time you need it.

[jamesterrance]

I'm 77. I'm not sure I'd buy LTC insurance again. First, unless you think you'll be in a nursing home for many months -- 6 months or more--I wouldn't buy it. Second, understand that the premium will go up. It goes up the most when you are retired and can't afford it. Third, remember, all healthcare companies contribute millions to politicians who have and will agree to changes healthcare providers demand. (the reason the premiums go up is because the LTC had no idea people would actually use the policies; they had no idea healthcare costs would go up.) Fourth, in my policy, and I assume in most, you pay out of pocket the first 90-100 days. Most likely if an acute situation happens where you need to enter a nursing home immediately, the LTC policy won't pay for the first 100 days. (Some policies will pay during the first 100 days for home care.). So, if you think you'll be in a nursing home for months, then buy the policy. Knowing what I know now, I'm not sure I would have bought one.

[weddingpianist]

Excellent helpful, without trying to oversell a product !

[kbyrnes]

Excellent presentation, very informative. Thank you.

[beerbearmgd]

Good Job Joe. Easy to understand presentation.

[kojackMintz]

Thank you. I was reading and trying to understand this policies. I new at this and this video is a great bird's eye view of the topic. Some of the situations do not apply to me, but I still learned a lot.

[suwanatatnina]

Thank you so much for the information.

[reconnectforsuccess]

Great background and very easy to understand

[govinda]

"typically drop?" I like his frankness.

[macrosales]

I have a small question I thought my policy around 25 and I am 32 now can I have be able to withdraw money now or do I have to wait till I’m 60

[bjdeng]

Is the use or pass it policy which covers lifetime LTC still available nowadays?

[Elephantine]

Good video about a complicated, important, and not-very-exciting subject! I will watch it again. BTW, it's "Factors that *Affect* Premiums, " not "Effect." 🤓

[karenmikich]

Cannot read the whiteboard. A powerpoint presentation would be much more beneficial to us. Thx.

[pinganwei]

Would you tell me
How many cash indemnity
Company out there for long term care insurance??

[vmobile]

Thank you right to the point on cost .

[ginnys]

To use this as care and an investment as 'use it and pass it', what is the interest rate on the insurance? Shop for best company with highest interest rate?

[jennifersnavely]

I was interested in getting something like this for myself because my father is just going through this and I was blindsided by finding out that their insurance has no coverage. However, the nursing homes in our area are between 10 thousand and 12 thousand per month. I'm not sure what 5k a month is going to do for you?

[jcc]

Is the $5K benefit amount a monthly amount?

[Litarider]

So by paying $171, 512, the use it or lose it plan will pay $167, 000. I don’t see the benefit. Why not just pay that $171, 512 for care?
A nursing home can cost more than $100, 00 per year. A plan that pays $5000 per month won’t even cover the cost of a nursing home.