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I just got notified that Federal LTC premiums will increase starting in 2024. In my case, my premium will almost double by 2026. I have the option to keep the premium the same but with reduced benefits. Need to decide by Nov 9th or the premiums will automatically increase. I'm leaning toward keeping my premium the same and taking the reduced benefit. Anyone else facing the same decision?
I should be receiving a notice fairly soon. I've been through this process 3 or 4 times. Each time, I've stuck with the terms of my original policy. This year, one of my sons (an insurance actuary) asked me not to make any decision before he has the opportunity to review the terms. My policy is for 3 years coverage with inflation protection @ 5% compounded annually. I would consider dropping future inflation protection, but I know I'll be keeping the policy. Because if I don't pay the premiums, my kids will.
LTC is a rip off unless you've got $10 million or more in net worth. The average days spent in a facility by elderly is like 23 days.
The only people who need to insure with LTC is people who have a super high net worth. LTC is a smoke and mirrors job that is sold over and over to people at retirement and they'll likely never use it, just like a lot of other insurance premiums they've paid throughout their lives.
I've never heard so many people screaming (in my world) that you need LTC, I call b.s. on it.
Where's your source for that false information?
You don't get LTC insurance for short stays. In fact declining short/early stays lowers your premium.
Pretty sure you're not educated on the subject.
For example, you can get in a much NICER SNF if you have assets/money than if you're on Medicaid. They're not stupid and places hold aside a certain number of beds for various reasons.
My mother ended up in a hellhole pit for a year after a stroke and she was wealthy AND could have self insured or even paid to die at HOME (but they wouldn't discharge her.)
But her LAWYER'S mother got one of the few available beds in the nicest SNF because he was very well politically connected.
So yeah, you're not really in the loop.
And this 23 day thing is WUT???? IF the average stay is 23 days why does it matter if you have $10 Million. Where's the risk to your millions????
BRB, going next door to ask my neighbor if she would have preferred a nice SNF REHAB bed for her TBI for six months or the crap place she had to go to on Medicaid.
Last edited by jaxrivers; 09-18-2023 at 10:35 PM..
Mine doubled last year. Mine is group insurance from a former employer. It still doesn't cost much. By accepting that increase my premium is frozen for a few years.
If they don't receive my payment, they contact my sister. I got a form the other day if I wanted to change my contact person.
With my LTC, SS, pension, some other stuff, and proceeds from selling my home I should be ok.
I've known many people who have purchased long term care. None of them have ever gotten what they thought they were told they would get from long term care. Everyone I've talked to always agrees: it is a rip off. At the very least, they will put people off for months or EVEN YEARS from receiving their benefits....even if they are in assisted living!!
Homeowner's goes up based on Cost of reconstruction, not FMV as you allude to here.
Of course it goes up based on cost but that is only one factor because home insurance also covers things like theft and liability. The difference is mostly due to overall risk which for LTC is increasing at a faster rate than Home insurance which is why premiums reflect that. Both are going up - I did not say or "allude" to FMV or anything else like you claim.
The cost of reconstruction (and risk) though tends to follow FMV increases to a large extent. Most don't have to go through the process of having them inspect the home to get insurance. I have had to both in CA and NV - in CA they estimated the cost of rebuild at much higher than I paid - my insured value is actually higher due to that analysis.
I feel for those who have been paying LTCI premiums for years to only see benefits slashed and/or premiums increased dramatically. I'm afraid it's only going to get worse as more people are living longer and requiring care.
It depends on the policy. The good ones are worth their weight in gold.
absolutely.
i like how others have comments on policies they never owned and likely the person telling them if true , didn’t understand the terms of what they bought or blatantly didn’t meet the terms .
our policy is written in plain english with no gotchas , it is a requirement of our state and i am sure other states by now have followed
so based on what they heard all policies suck.
the mere fact insurers are getting out of the business because they are paying out billions in claims says that statement is incorrect.
it reminds of me someone who didn’t dot their I and cross their T in an auto accident and now all insurers suck
Last edited by mathjak107; 09-19-2023 at 03:52 PM..
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IF the average stay is 23 days why does it matter if you have $10 Million. Where's the risk to your millions????
