Kim Kelly, CLTC
29 Feb
When buying long term care insurance
Do not apply right after an illness, you will probably be declined. On the next application you will be asked this question about declination and it will prejudice that second application. Instead, wait until the illness has passed. Always work with an agent who specializes in LTCi, it can be complicated.
1 Oct
Don’t buy too much Long Term Care insurance
Buying too much insurance. I have reviewed several policies that were
“oversold” to people who made good money while they were working. After
retirement the premiums became a burden. Look at just mitigating the risk of
you needing care, not paying the entire bill. Generally, we do not need skilled
care (a price tag in 2011 of between $7,000-12,000 a month, depending on where
you live) immediately unless you are in a bad accident or have a severe stroke –
things like that. Most of us just get frail as we age. We may start off with a
caregiver coming to our home three days a week for four hours. In today’s
dollars, that would cost $20 an hour or $960 a month. Assisted living can range
from $3000-4500/month – again, depending on where you live. So as you choose
your monthly benefit, take into consideration how much you are willing to spend
of your own money every month towards your care. This scenario is different if
you are married as the healthy spouse will still be at home, the unhealthy one
in assisted living or skilled care. This can potentially double your total
monthly expense.
