I have been working in healthcare for 35 years and would not own a policy unless it was supplied by my employer. I have chosen to do a VUL, which is much less expensive than LTC and can help cover those costs if ever needed. I am also at liberty to use these funds to cover different needs than are covered by a LTC policy. Will it cover all my expenses? Absolutely not! That is why I have savings.
Many long term care policy benefits do not start until you have had 100 days of skilled care, which is a medicare (partly) covered benefit. After the first 20 days of medicare covered skilled care, out of pocket expenses are approx $120 per day. Some LTC policies do not start for 90 days to 180 days after the need has been certified and you have paid for out of pocket care. Make sure you know when your policy would start before you purchase it. I wish I knew more about the government proposal, but like any other plan, I am sure it will not fit everyone's needs.
Only 5% of the population is in LTC at any given time. A lot of people pay huge sums of money into LTC insurance but only 36- 50% of those who pay in ever receive any part of that benefit. If you need it, and have paid into it, then great, but otherwise it is not useful. Look at your family history, your personal health history before you take a policy. Not one of my family members nor my husband's family has ever needed LTC. Many LTC policies ONLY cover nursing homes, not skilled facilities, assisted living or home care. Know what your policy offers and how infirm you need to be before you can access coverage.
These policies are huge money makers for those who sell them to you. It is in their interest for you to purchase this. My sister in law sold these policies for years for a major corporation and DID NOT buy one for her or her husband, because she knew what a bad investment it is. Rates for private insurance through the big companies may rise as much as 40% this year.
When searching the web for information, most of the sites that recommend these policies are sponsored by either the insurance or healthcare industry, and therefore have a huge bias. This link is to a Consumer Reports article.
http://www.consumerreports.org/cro/...ance/overview/long-term-care-insucance-ov.htm Money Magazine also did a similar article.
Make the decision that is right for you and for your spouse and extended family. Me, I am with with x3 skiier who wants to go with the avalanche. My father was always hoping to be shot by a jealous husband. Both my husband and I have discussed this with each other and with our children and we have come up with a plan that is agreeable to all, will not over burden each other or our children and will allow us to live (and to die) with dignity.
