OK, this is about the philosophy of owning LTC insurance.
- If you're over 65, the odds are good that you will need some form of long term "custodial" care. Probably not for more than 3 years, according to the averages. Longer if Alzheimers' runs in your family. And you'll have to pay for the first 90-100 days yourself in any case. Now, do you feel lucky? LTC could wipe out your savings quickly, leaving you in a state Medicaid-funded nursing home. At least with LTC insurance you can "buy your way in" to a nicer facility~
- It USED to be smart to buy a policy earlier when you were healthier and premiums were lower -- presumably for the rest of your life. Insurers couldn't raise YOUR premiums just because you got cancer or some other disease. No one -- especially me-- figured they would have these huge increases for ALL policyholders. But they convinced insurance commissioners -- state by state -- that they'd go out of business if they didn't raise premiums on everyone. They goofed -- priced policies too low in the first place.
- If you're younger, say in your fifties, there is a better way to purchase LTCI. Do it through a "combo" life/LTC policy. See my recent article on those in the archives at www.TerrySavage.com. Here's a link. That solves two problems. If you make a lump sum deposit into the life policy with LTC rider, they can't raise your premium. AND, if you don't use the LTC part of it, your named life insurance beneficiaries will get a payout.