Those of you planning for retirement..what is your LTC plan?

New to the forums, joined because it’s the best source I found on Rise of the Resisrance BG strategies.
I came into this sub forum expecting money saving trips for Disneyland, particularly alternative parking strategies.

I say all this as a lead in to say I have no interest to self promote, but I do financial planning for individuals and businesses. Part of that conversation when my clients start approaching retirement age is long term care insurance. With that said, pure long term care insurance is a troubled product category for insurance companies, and most products out there (for new contracts) are constantly revised and downgraded along with steadily increasing premiums. The simple reason for this is because there is such a high probability of their use as people live longer.

The problem with this is while LTC is something you absolutely have to budget for, it’s a bitter pill to swallow to pay for something that is pure insurance (meaning it has no cash value or ancillary benefit, it’s use it or lose it). The insurance companies see the issue of LTC insurance and have built hybrid insurance products that blend long term care insurance with something like life insurance so you know you or a loved one is getting back what you put in. Also some fixed period annuities allow for early draw down without penalties for long term care coverage.


Sorry for making this my second post on the forums, I know it seems sketchy and self promoting, but I wasn’t expecting to find a topic so relevant to my profession on a Disney forum!
 
No problem, Epicnemesis--I didn't read your post as self-promoting at all.

I agree with you about the LTC insurance industry--my biggest concern with LTC insurance, after buying it and not needing it, is needing it and not getting what I thought I paid for. I suspect a lot of people are going to be surprised--and not in a good way--in 20 years or so when premiums are through the roof or insurers are dropping like flies or whatever ends up happening. That's why I figure, self-insuring is the way to go, although this isn't an option for everyone, either.
 
Hire a certified financial planner to help you determine your financial health/ability to self insure vs. purchasing insurance. Look at hybrid LTC policies. Lincoln and Nationwide are big players in that space. Good luck!
 
Yes, it's expensive. We purchased it three years ago. Basically, we do not want to be a burden to our sons who live in states far away.

We live in New York. NY LTC has an asset protection component. I won't pretend to be able to describe it fully but basically our plan offers us some ability to keep assets. Supposedly the thought is that NY wanted to encourage people to get LTC and in return they'll let us save some assets.

My grandmother lived to be 108. At the time I thought that was great and a worthy goal. Now, not so much.
 
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