Long Term Care Insurance

My husband in his mid 80s has a long term care policy that he has had since 2007. In retrospect, because he was denied by other companies, he jumped at a plan through Mutual of Omaha. Monthly premiums are in the $250.00 range. Except for spinal stenosis, he is in good health. We recently learned that there is no inflationary clause. In the event that he would need to use his policy, the daily pay out rate to a nursing home would be $100.00. We own our own home and have some investments, but wonder if we should just set aside monthly funds on our own and cancel this policy. Your advice on this is greatly appreciated. Thank you.

Terry Says:  If you can afford it, I think you should keep it!  An additional $3,000 a month might be the difference in getting better care in a nursing home that has either special rooms for private pay clients — or one that does not accept state Medicaid programs.  You’ll never be able to save enough now for a $3,000 per month benefit — which you might need for a year or more!  AND, you didn’t mention home-care benefits.  Do you have them on this policy?  A $100 daily benefit might be enough to keep him at home, with just a few hours of daily assistance for bathing, dressing etc.  That’s another reason to keep this policy.

Now I have a question:  What about YOU??  Typically, based on actuarial data, the man needs care first — and uses up most of the family resources.  I wish you had your own policy — or very caring daughters!