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Ray, Lawyer
Category: Legal
Satisfied Customers: 36371
Experience:  30 years in civil, probate, real estate, elder law
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My mother is looking into long term care insurance.

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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

RayAnswers :

Thanks for your question and good evening.

RayAnswers :

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).

RayAnswers :

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

RayAnswers :

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?

RayAnswers :

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?

I understand if you can give me a minute here I will review the policy.Here are copntact numbers here==do some more investigating it cannot hurt..

Contact Consumer Services:

  • North Carolina Department of Insurance
    1201 Mail Service Center
    Raleigh, NCNNN-NN-NNNNbr/> (NNN) NNN-NNNN- in North Carolina Only
    (NNN) NNN-NNNN- outside North Carolina

Seniors' Health Insurance Information Program (SHIIP)

SHIIP Counselors are available to help citizens with a variety of senior insurance issues including Medicare, Medicare supplements and long-term care insurance.

Contact SHIIP:

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


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This communication does not establish an attorney client relationship here.Information provided is not legal advice. Rather it is simply general information.

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Customer: replied 3 years ago.



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!

Well the premiums have gone up so much because the cost of long term care has.Here she would be looking at say $4-$5k a month for private pay nursing home depending on her level of care .So it can get real expensive.But thats her call.I mean you are buying peace of mind, planning for the worst here.

But its expensive no doubt so it comes down to a judgment call as to whether it is a good option.It does provide reall protection if she needs it down the road.
Customer: replied 3 years ago.

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.

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).This is average for this specific kind of coverage where she has ability to get a refund if she doesn't use long term care.Her loss here is the loss of interest on this much money the refund did not include any interest on the funds as I stated above.

Honestly id she has plenty of funds you may try to toalk her out of it if you think it is not needed.It is legitimate but it is not cheap.
Customer: replied 3 years ago.

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?

Well it protects her from being a burden to you and gives you some peace of mind and her too.I think there are worse things to have than long term care coverage.People are living longer these days and the price of care goes up like all of health care here.
Customer: replied 3 years ago.

Agreed. Do you know of any plans that seem to be a much better deal?

No I have not seen any that have a better rate for this kind of coverage.The premium is higher here bacause of the refund language.But it gives you flexibility.Regular long term care insurance might be cheaper but no refund options.
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