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Self directed long term care

I have not done anything about LTC My wife and I are 56 .Her mother age 89  has LTC and just went in to care home physically she is fine. Mentally not  at  all . She has vision problems and started dementia   Wife parents paid well over 100 k  in premiums for a 3 year benefit .. It is about a trade off right now.They had it for 32 years.  Insurance co has said as long as it is medically necessary they will pay after 100 days.

 I would like to decide when it is my wifes or my time if  we need lt .Anyone have self directed LTC Thanks

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5 Replies
Highlighted
Senior Advisor

Re: Self directed long term care

I'd say it is a good time to start now. Rates are lower at a younger age and that incapacitating calamity can happen at any time. Not just a disease overtaking your body but a car wreck or anothe accident can render you helpless.

 

A hundred or so in premiums are quite managable but $5K per month is not. It is not only protecting your assets but the futures of your children as well. WE have had long term care insurance for quite awhile as a result of in laws and parents requiring long term care. Fortunately they were prepared for it.

 

Meanwhile it is our hope that neither one of us need it but if wedo neither one of us will be impoverished because of it.

 

 
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Re: Self directed long term care

Don am I correct that yours is a insurance policy ? I  was wanting to  deposit  funds into a Medical savings acct . and if I never use them my family keeps all the premium or in in my case the deposits. All for long tem care and all tax deductible.

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Roy_Smith
Friend

Re: Self directed long term care

We purchased a LTC policy the year before Sharon turned 60. It seemed that the best rates were before either partner reached that milestone. We got discounts for taking it as a couple as well as for both of us being healthy. You cannot afford to insure against everything. We got an automatic inflation rider and chose a lower daily rate, assuming that we would both live to a ripe old age. My advice- if you are buying insurance-buy early and select carefully. ...Soyroy

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Senior Advisor

Re: Self directed long term care

Yes, we have insurance. I don't know about self directed. I suppose any sizable asset could be liquidated should you have a claim, but we are trying to avoid that.

 

I take it you plan to buy a long term care policy of lesser quality and supplement it with the health savings account.  I5t might work.

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Honored Advisor

Re: Self directed long term care

If you are talking about a health savings account, that is not the answer to LTC, I think.  It is meant to cover deductible expenses under a matching high-deductible HSA health insurance plan.  That contribution at age 56 ( we turn 56 this year together, too) is $7,150. 

That money, if not spent, does stay in the account, drawing a small interest rate (as all savings seem to do now). you do have optiosn to take funds out to invest in alternative ways, if you've exceeded a certain balance, which used ro be five or seven thousand, i can't remember.  The main advantage is that you pay deductible health costss out of pre-tax dollars, instead of your of your after-tax income. 

You could NEVER amass enough money in an HSA to cover a long stay in skilled nursing care. 

I am not sure if HSAs will survive under Obamacare. 

Our insurance agent has been making noises about LTC insurance for a couple of years now. I am not biting yet.  For now, I am concentrating on a coupoel fo otehr avenues for making our senior years better. 

One, this summer,  I have been studying informally on "aging  in place."  Any changes se make on our home now are directed towards making this a safer adn more comfortable spot for two old people. 

Mike is very healthy, and I try to take really good care of him.  I've fought to regain a lot of squandered health assets.  I think a lot of care needs can be avoided, or at least greatly delayed,  if you actively work on your health - diet and exercise. 

I am starting nursing school to gain RN skills in three weeks.  My main driving decider in this choice was to be better able to advocate for the two of us, and to know when it's time to do what.  My family has a history of either living long and independently, or dying very young and suddenly.  Mike's mom is 96 today, and may outlive us all.  It is a bit hard to plan for our own elder years, while still funding hers to a fairly good extent each month.  We will deal with it in due time. 

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