Long Term Care Insurance 101 - Cost, Benefits, Features

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

[@cherylcampbell7495]

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.🙏🙏👍

[@skeezix8156]

Thank you for taking the time to post this comment. I’d never even heard of Genworth and I’ve just started looking into this type of coverage.

[@EricSmith-mz7tn]

But is there. Limit how much premiums can go up? I'm turning 40 in a yr. I'm considering this, but if I end up needing to pay unreal prices by the time I need it, no point.

[@yolandawilliams7313]

I have genworth and pay close to $120 a month. Next year it's increasing to 114%

[@jennykim6220]

@@yolandawilliams7313 is this this the most reasonable long term care company & policy you have found? I am looking into it again & my friend who is with Met Life says $600 a month. Ridiculous ..can’t afford that much! This is for in case I need it but for $600 is just outrageous!

[@EricSmith-mz7tn]

@@yolandawilliams7313 doesn't seem worth it to me. Unless you can get into a fixed rate I don't see the point.

[@clancylittleboy7408]

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.

[@weddingpianist316]

Excellent helpful, without trying to oversell a product !

[@kbyrnes1019]

Excellent presentation, very informative. Thank you.

[@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.

[@karenmikich4972]

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

[@Elephantine999]

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." 🤓

[@jennifersnavely7826]

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?

[@SadhuTravels]

I think this is why a lot of senior will move to lower cost of living/ healthcare expenses places around their 70s. Also, wow! 10K a month is literally a death sentence.

[@govinda102000]

"typically drop?" I like his frankness.

[@beerbearmgd]

Good Job Joe. Easy to understand presentation.

[@suwanatatnina]

Thank you so much for the information.

[@kpcali533]

Man getting old is expensive

[@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.

[@crystal3088]

Because people like the idea of security… people forget the idea that you can self insure.

[@maygrace6738]

No it’s the use or pass it option

[@LLMiller1]

The $167 is a death benefit portion not the LTC portion.

[@atbda]

Both plans in this example pay $5K per month. The difference is the $171K cost for the use-it-or-PASS-it plan will pay $167K back to your heirs when you die and haven't used any of the care services. On the other hand, your heirs don't get anything back if you die or even if you decide to stop paying the premiums in the use-it-or-LOSE-it plan. Its true that $5K per month won't cover the cost of a nursing home, but instead of paying $9K per month out-of-pocket (i.e., savings and or assets) for a nursing home, you would be paying $4K per month out-of-pocket. You might consider going with an assisted living facility (rather than a nursing home) which average ~$5K per month and then either insurance would then pay full monthly rate (no out-of-the pocket).

[@gilliandale4854]

but remember that most people don't actually o into a nrsing home. they are more apt to have in-home health care.

[@lori-annefay4138]

Hahaha, discounts for married people, no stress there. Single by choice, happy, health and screwed. And of course it's cheaper for men it's your world, and ya kick it earlier. Okay did some research and circled back. Question with the $21,000 10/ yr. Pay wouldn't you be better off investing that $$ and having it directed to a living trust?

[@Texasbird026]

This is a dumb question but is the payout 5k a month or 5k a year.

[@janetlynch2920]

It's usually per month

[@lorihamlin3604]

Got to be month. 5000 a year would be useless for care of any sort. You’d pay more than that for a 1x weekly housekeeper.

[@jeebs98]

This is not a dumb question, as it was not explained in the video. Based on the fact that the presenter has yet to reply to this one simple question, I for one will not be seeking his services.

[@CocoChanelle-1]

I was thinking the same thing.

[@karlalvsmissy9437]

It’s most likely per month :((

[@ramonalopez7516]

Very helpful! Thanks.

[@IamMC939]

Thank you for the insightful video

[@vmobile890]

Thank you right to the point on cost .

[@reconnectforsuccess22]

Great background and very easy to understand

[@reconnectforsuccess22]

Info varies throughout states, which one is this video?

[@krissykris4475]

I keep calling around and they say you can’t start a policy until your 50

[@robmartin217]

Life/LTCi combo partnership policy

[@joannemeeks745]

Excellent video.

[@brettyeager9279]

Great information - thank you!

[@ijyoyo]

Thank you, very helpful video

[@hpaek1891]

You lost me on the first line - 5K? Why would you buy a policy that only pays 5K?

[@gilliandale4854]

it is probably referring to $5k payout max per month?

[@anntrope491]

For the amount per year you are referencing… I would just put it in a high interest savings account… or a Roth !! $21,k a year !!?? X 10-20 years plus compounding interest…& I could access it anytime I needed to !! & if something happens,& I can’t make my payment… I’m not going to loose every thing I invested !! Then leave everything to a trust… the Roth can keep making $ for 10 years after I die !! Guess I’ll have to shop around if I want a life insurance policy !!

[@ginnys1010]

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?

[@ss_541]

Thanks for this informative video!

[@Silvertestrun]

Ty

[@user-ty2uz4gb7v]

What if the insurance company goes out of business after you've paid in monthly for years and years or paid a lump sum

[@sarahmoyer4983]

I do not understand. I must be missing something. If you are paying $5000/ per year to get a benefit payout of $5000 per year, what's the point? Or is it 5,000 payment per couple, then the benefit is 10,000 per couple?

[@KS-tl3uh]

Payout is $5,000 per month. Hope that helps in your calculations.

[@thomaschadwick4699]

@@KS-tl3uh $5000 per month is the !st year payout. Every year the payout is increased with the 3% per year with the inflation option. Your monthly benefit and lifetime benefit increase every year by the 3%. After 20 years the monthly would be around $9000. At 5% inflation option the monthly benefit would be $13000.

[@GratefulDeb270]

Very helpful video! Ty!

[@jcc9059]

Is the $5K benefit amount a monthly amount?

[@priyankagarigipati558]

Fundamental information is missing in this video is 5k per month per person or 5k for life time or per occurence of risk? Presenter took lot of measure NOT to speakout what is 5K means.

[@cdbutera1093]

I just watched this video. Please look at the video at 15:08 to 15:10 where he says “......again that’s 5 thousand per person. I think that’s important to point out.” Hope this comment helps you.

[@Joec828-x8f]

$5k per month per person

[@bjdeng2646]

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

[@dilyaknight5430]

Great presentation, but I am watching after speaking with my local agent and your yearly price is 3x's higher with less benefit.... why? Is this for 2 people or just 1 person?

[@atbda]

He did three scenarios based on age (50, 60, and 70) for covering a couple (two people).

[@pinganwei1419]

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

[@maureenoleary8988]

Wow, the fact that you did not mention a significant cost of this plan is disturbing.

[@kristinemitchell8043]

Is that 5K per month or year?

[@jhanebarnes9104]

I was told yesterday by an insurance agent that a "use it or pass it" couples plan is hard to find these days especially with lifetime coverage. Is the plan you showed for age 70 still available at the same rate?

[@nickgullett7774]

Someone told you a fib -- OneAmerica is the carrier Asset Care is the product, and it will issue up to age 80 (assuming you are insurable)

[@jennykim6220]

I just started looking into since a friend of mine is doing long term care. It was $300 a month about 7 years ago but now $600 a year. Can’t afford it!

[@robmartin217]

2 years coverage enough....really?....how?.....when you need ongoing care or move into a nursing home for the rest of your life

[@n7daly]

who can afford this?

[@nickgullett7774]

Pricing is based on age, health, amount of coverage, and optional riders chose -- "affordable" is a relative term. We can design these to fit most budgets

[@bernardcohen3245]

are you normal sir. 5K ? That's on day's worth of care you need to find a new line of work

[@dannemeans9842]

My mother is currently in an assisted living that is fabulous and my father was in one also. My father's care was about $4800 a month and my mother's is about $3800 per month. These are 2022 prices. My mother currently recieves a guaranteed $160 per day. We are actually banking money each month, although the policies my parents bought only pay for 3 years. Either way, you don't need to be rude.

[@overeasy3118]

$5k per day would be more in line with full medical care/hospitalization. Full health care insurance coverage is used before the LTC coverage kicks at the selected waiting period. Both policies continue to supplement each other during a policy holder's needs.

[@jenniferressmannwriter]

@@dannemeans9842 What state? :) Thanks

[@danamuise4117]

$5000 benefit? What is per week, per Month, year?

[@Dsuji245]

I have the same question. 5k benefits means what? Someone please clarify it. Thanks.

[@bornwithbsguards]

I have an alternative remedy to long term care. 🤯 This world is shitty. You work your whole life just to be able to have someone care for you like a baby again. My long term care does not end. And its only the cost of a single round

[@johnliu3924]

The premium here is for one person or couple?

[@jeebs98]

very sad that the presenter is not interested in answering questions.

[@Joec828-x8f]

Couple

[@jeanie_k]

Sadly, this doesn’t help us singles.

[@atbda]

@@jeanie_k Singles can buy either plan (use-it-or-LOSE-it or use-it-PASS-it (aka, hybrid long term care plans)). The presenter only showed numbers for a couple, but a single person can get either plan for roughly half the rates shown in this video.

[@user-we6wi3rn1l]

You can also start drawing if you have cognitive impairment.

[@kimchi4776]

You start the math at 50. Is 35 too young to start??

[@barreahmed3173]

Just for your info, “Premiums for long-term care insurance do not qualify as an eligible medical expense for the medical expense tax credit.”

[@Gary-li2xr]

Not true. It is tax deductible on the federal return. Keep in mind that your total medical has to be more than a certain percent (7.5 of gross income?) for it to be claimed. Also I think policies less than one year don't qualify, See your tax guy.

[@barreahmed3173]

@@Gary-li2xr Got it. thanks.

[@nickgullett7774]

@@Gary-li2xr You are correct on the 7.5% floor, bu there are also age based limits that apply as well (the older you get the more you can potentially deduct)

[@diazsrv340]

8【

[@deedi6414]

A phone number would be nice

[@jeebs98]

So would replies to questions.

[@nickgullett7774]

The 21 minute mark on the video provides this as well

[@deedi6414]

My apology

[@nickgullett7774]

Joe has his contact info listed on his LinkedIN page

[@dionnestokes8862]

@@nickgullett7774 What is Joe’s full name on LinkedIn?

[@nickgullett7774]

@@dionnestokes8862 Joe Conroy, CFP