My mother is looking into long term care insurance. She already has $150,000 in such insurance. She is in good health and is 78. This policy she is looking at is asset based supplemental insurance. From what I can tell, she would give them $25,000. Then it helps supplement long term care or pays out $28000 upon her death if the policy is not used. I think she might have enough long term care insurance now but it's not my decision. If it was up to me, she would sign everything over to me and on paper become broke so she could use medicare if necessary but she won't do that. Just saw a friend's mom pay a few hundred thousand out in medical bills because she didn't sign over assets to family five years before she got sick. Anyway, are these policies legitimate or just a way to con old people? It seems like she couldn't lose, she either uses the insurance or they pay upon her death. I know that's what she is thinking. I think she doesn't want to be a burden to anyone if she loses the ability to take care of herself. I have three kids and I know she thinks we would get the money if she doesn't need the long term care and if she needs it it will be there for her. Anything to watch out for? Do you guys review polices for us?
Here is the program
Thanks for your question and good evening.
These are legitimate policies.Generally they pay for her long term care or in the event of her death the balance here goes to her designated beneficiary(s).
Here is more information about these type policies.
It also says she can get her basic policy amount back if she changes her mind. Is this real? It seems if she can get her money back and she can have the insurance and she can opt out and get her money back it might be a good thing
As you state she may have enough coverage already if she has long term coverage here as well as say savings.As far as getting her money back the term sof the policy control here.
Is that what the brochure says, I don't trust my legal interpretation
Any luck getting a loved one to sign stuff over so she is broke on paper so she doesn't need this stuff?
The risk here is that if she signs it over it is considered a transfer of assets, medicaid has a five year look back period.The risk is if she needs care during the five years medicaid would deem her ineligible.
I guess that's a different issue. She's pretty straight up and wants to pay her own way. I feel like she's paid the government enough. But hey, it's not up to me. My dad got cancer and was dying and it was horrible. If it had been me, I would have bought 10 of those no questions asked life insurance policies but my parents don't think that way.
I see about the five years. She's in good health now, I think the five years would be fine. Especially since she already has long term care insurance and it's paid for. But she won't sign stuff over. I told her I wouldn't take a dime but she would feel dependent on me of course
You know odds of needing more than $150,000 in long term care insurance?
SHIIP Counselors are available to help citizens with a variety of senior insurance issues including Medicare, Medicare supplements and long-term care insurance.
Nationwide Toll Free Line: 1-800-443-9354 Main Number:(NNN) NNN-NNNNbr/> Fax Number:(NNN) NNN-NNNNbr/> SHIIP Directory Email: email@example.com
Mailing Address: Seniors’ Health Insurance Information Program 11 South Boylan Avenue Raleigh, NC 27603
Mail Service Center Address: Seniors’ Health Insurance Information Program 1201 Mail Service Center Raleigh, NCNNN-NN-NNNN
According to their flyer she can get her cash premium back, the "loss" if you will would be she gets no interest on her cash whereas now she is getting some interest on it in a CD or IRA or whatever investment she has.
If she keeps the policy she would be paid some interest according to their brochure it is only if you cancel here you only get the "cash" premium.This would be a reasonable investment if she feels the need for additional protection.
And I have to say I had a client recently that had both of these policies and actually has made out like a bandit after paying all these years.He needed long term care actually skilled care and that runs about $5-$6k a month plus his other medical bills.I know it seems like a big black hole sometimes.I mean this person is same age as my dad and my dad deceased without ever needing it.But this guys has literally defied medical odds, survived a quadruple bypass/stroke and was in the hospital and rehab for a year and then skilled care so I have seen both sides.
He is going on 88 and the odds for a male surviving all that are long but it happens.So your mother may be one of those that needs long term care in her later years.If it gives her peace of mind she likely will not loose a whole lot given that interest rates these days are so low.
Thanks for letting me help you tonight.I appreciate the chance to do so
I hope that you will be so kind as to leave a positive rating. If you do have any additional questions about my answer please click the "Continue Conversation Link" so I can provide you with a fully satisfactory answer. Please be aware that any rating of 1 or 2 is reflected as a negative rating and I receive no credit for my answers.
This communication does not establish an attorney client relationship here.Information provided is not legal advice. Rather it is simply general information.
When I asked this question I didn't realize the policy has a $467 yearly fee in addition to the $25,000 initial price. Do you think it is still a good deal with the yearly AND initial price? I think all the specifics are contained in the original question but please ask if you need to know anything else. I can rate you again if it helps. Thanks!
I guess I mean is this an average price, a good price or a low price for what's included? She puts down $25,000, can get a little more back in ten years or I would if she is dead and doesn't use the long term care. I think I linked the policy for the amount of care included and she pays $39 a month the whole time.
I wish I knew if it was needed. She already has a primary policy for long term care but it's max is $150,000. Her Mom died of pancreatic cancer at 82 in six months flat but her dad had a huge heart attack and lived another 10 years needing someone to stay with him for the whole time (not all medical though). I guess it's a crap shoot. If the price is average I guess she isn't getting ripped off. She doesn't invest in things so the most she would make off the money now is 1%. So at least the way things stand now, she is really just out the yearly fee I guess. Do you know of such a fund that seems to be a great bargain?
Agreed. Do you know of any plans that seem to be a much better deal?
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).