My wife (66) and myself (72) do not have LTC insurance as we have always thought it better to save and invest for many purposes and LTC insurance always seemed expensive. Our house is paid for, we have 1.2 million in Vanguard 1 million in IBonds. Our regular income, including SS, my wife’s retirement, my wife’s annuity (teacher) and my RMD that all adds up to 8k a month. I am biased because both of our mothers had alzheimer’s and were in homes; we did a lot of looking and most homes tended to appeal to family guilt by providing unnecessary expensive services. I believe when you need a place like this you do not need to over spend. Do you think we have been stupid?
Terry Says: You’ve been right — so far! But if one or both of you develop Alzheimers, it could be a different story — and expensive and difficult proposition for the survivor. Do you have children? If so, maybe you would like to put a lump sum, perhaps $100,000 into a combo policy that offers life and LTC coverage on both your lives. It leverages up your deposit for more than 3x that amount in LTC insurance for you and your spouse. But if neither of you needs care, then at the death of the second of you, the life insurance benefits goes to your heirs. In the meantime, the cash value of the policy grows — and if you need case you can always borrow it out, tax-free. Contact Brian Gordon or Peter Florek at MAGA LTC, 800-533-6242 — and they will give you an illustration. That way you can relax about the possible costs. The other choice is to move into a continuing care community now — and if more extensive care is needed for one or both of you it will be an easy adjustment.