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There are rules for these policies and it is not necessarily intuitive as to how they work. There is a time frame during which claims need to be made - know the rules. There is also often a stretch of time before the policies need to be activated but they still need assistance in making sure that they are paid for. They forget to pay them or are overwhelmed by the increases and let them lapse.....
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,080 posts, read 7,533,882 times
Reputation: 9819
Quote:
Originally Posted by WVNomad
Everything you say makes sense. We are almost exactly in the same place you are---age, ability to self insure. Even the policy we had, had terms that were close to what you described above. I agree your policy is worthwhile. I would have preferred to keep ours as I am pretty risk adverse, but for us, the cost and uncertainty about future rates got to be too much. Hopefully, the end for both of us is a long way off, but when it happens, it will be quick.
Quote:
Originally Posted by kavm
Thank you! All the best to you and your spouse as well. This is an insurance I’d be happy not collecting on.
I imagine that the cost of LTCi will minimally track inflation + the cost of scarce labor + facility cost for us Boomers who need facility care. Our LTCi has increased ~4x original cost since 2001, which includes a 30% benefit reduction on me.
We cared for 4 family members to their passing at home; 2 members would have qualified for LTC were we able to afford it and if they wanted it. I cared for my mother for 10 years, and the last 5 years practically 24/7. Not my proudest time. There is a whole forum on CD for this and as I have seen, other forums within forums for caring for family members.
My friend, the gentleman you are addressing is NEVER going to acknowledge that you may have thought through the situation completely, sensibly, rationally, and made a decision that is consistent with your risk profile, net worth, and your expectation of the future. In fairness, he is clearly knowledgeable, and his advice is not without merit. Unfortunately, he doesn’t understand that people are not going to be receptive to anything he says if he can’t say it without sounding so judgmental and dismissive of other people’s decisions.
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,080 posts, read 7,533,882 times
Reputation: 9819
FYI
In the State of Washington, All, W2 employees, pay a payroll tax on gross of 0.6 of 1% towards LTCi. Mandatory under Washington 's CARES ACT. Some exceptions: Self purchased or existing LTCi. DS (36) bought a life insurance with LTCi rider (I don't understand it) because it is portable but more expensive than the state's plan. DIL 's company is picking up the cost but there may be a federal tax on this (Haven't inquired). They cannot buy standalone LTCi from a insurance company, because the minimum under-righting age= 40. State's Coverage is non inflationary $36,000.
There are rules for these policies and it is not necessarily intuitive as to how they work. There is a time frame during which claims need to be made - know the rules. There is also often a stretch of time before the policies need to be activated but they still need assistance in making sure that they are paid for. They forget to pay them or are overwhelmed by the increases and let them lapse.....
On my LTC if they don't receive my payment(hasn't happened), they contact my sister. They send me a form every year asking if I still want her as my contact or to change to someone else.
On my LTC if they don't receive my payment(hasn't happened), they contact my sister. They send me a form every year asking if I still want her as my contact or to change to someone else.
same , it goes to my son if my wife or i don’t make payments.
if we are using benefits then no premiums are due
Last edited by mathjak107; 12-17-2023 at 03:16 AM..
Genworth did the very same thing on life insurance. I called to ask why and the very honest rep I spoke to admitted they are looking to get out of the life insurance business.
I let it lapse since I originally obtained this policy when my kids were babies, just in case, for college costs. My youngest is graduating from college this spring, so I don't need the policy so much that I am willing to pay their now outrageous premiums. This went above and beyond increases because I am older.
On my LTC if they don't receive my payment(hasn't happened), they contact my sister. They send me a form every year asking if I still want her as my contact or to change to someone else.
Yes, the policies have the contact safeguard. The only problem is when the contact suffers a cognitive decline or predeceases the policy holder. Also, the premiums are not cheap so the contact would need to have a way to pay the bill if you don't.
What often happens is that the policyholder will see the rise in the premium, decide that they no longer need the policy and cancel it. The contact isn't notified to my knowledge. So when a qualifying medical event happens that would trigger the policy - it is no longer in place. It sounds like something you would never do but old people (that includes our future elderly selves) do this stuff.
Genworth did the very same thing on life insurance. I called to ask why and the very honest rep I spoke to admitted they are looking to get out of the life insurance business.
I let it lapse since I originally obtained this policy when my kids were babies, just in case, for college costs. My youngest is graduating from college this spring, so I don't need the policy so much that I am willing to pay their now outrageous premiums. This went above and beyond increases because I am older.
That's interesting. I did not even know Genworth was in the Life Insurance game. I wonder what their long term plans are given they appear to be shedding policies on both the life and the LTC sides of their business.
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