| swne - 3/8/2020 01:03
I wouldn’t. Looks like you have good family medical history. The odds of not needing it are in your favor. Take some of the money your paying on premiums and put in mutual funds. Use that if you need to be in long term care someday.
Buy term life insurance and if you need to be placed in a home borrow against your equity then have your heirs repay it upon your death with the insurance.
Anymore, people are staying at home with the help of in house care. Average length in a home is only about 3 months. Of course, a 20 year stay would be a problem. That’s when you move to Mexico, buy a house, hire a local or a foreigner for a thousand dollars a month to live with you. (I know that can be done). you can’t hardly buy term life insurance that will be in force by rest home time (almost all carriers stop 30 year level term at age 55 for males, and it’s pretty damn expensive if you wait that long to secure it), unless you have an unusual early onset or stroke way before normal. And it’s highly unlikely someone can save enough in mutual funds if they are gettin a very late start to fund an extended stay. My wife and I each purchased a second to die life insurance policy a couple years ago with long term care riders providing 2% of the face amount per month. Premiums are not bad at all, less than 1 1/2% per year of the coverage level. And if we don’t use it, benefits are paid tax free to our heirs. And the long term care portion of the premium is deductible. We most certainly have plenty of assets to cover our needs, just wanted some cushion to take the sting out of our kids having to write those checks out every month if the home goes through the cash flow. If LTC inflation continues on the same trajectory it has for the last 25 years, it will easily be 15,000-20,000 month by the time we need care under normal circumstances. Take that times two, and pretty soon you’re talking some serious cash flow needs. While I don’t have time this morning to explain all the nuances, there are strategies to use qualified retirement money to fund LTC costs.
Edited by Boone & Crockett 3/8/2020 09:12
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Long Term Care
