Insurance Question
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  1. #1
    Registered User forHISglory's Avatar
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    Insurance Question

    I'm looking for advice on life insurance and long term care insurance. I'm asking you because I value the experience and sensibility of this forum, and I don't want a biased answer from an insurance agent.

    We have no life insurance nor long term care insurance. We were comfortable making this decision, but many others are appalled that we don't carry these insurances.

    At one time we had life insurance, but dropped it after son became an adult on his own. I always thought of life insurance as a tool to provide for those who depended on you and also to meet final expenses. We have no dependents now, and have enough in savings to meet final expenses. If hubby dies first, I will continue to get his pension. If I die first, he still gets his pension. So we see no need to have life insurance to provide a living to surviving spouse.

    We don't have long tern care insurance because we THINK we have enough in savings to cover this, if it is ever needed. We can't tell the future, of course.

    Basically over the last 10+ years, we have banked the amount that we would have spent on these insurances.

    What do you think? I promise not to argue! Can you think of angles that we should consider?
    Spiritual:
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  2. #2
    Rude and Vile Master Greebo's Avatar
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    Life insurance at this point in the game you don't need.

    Provided you have long term care insurance.

    But without life insurance and without long term care insurance, if one of you gets a long term lingering illness, that nest egg you think is enough will turn out not to be.

    Get long term care insurance.

    Tomorrow.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"


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  3. #3
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    **Disclaimer - I worked for an independent insurance agency for 5 years.***

    I agree with your life insurance decision, and honestly, I think a lot of people hang on to it too long.

    As far as the long term care insurance, I would always recommend purchasing this if it is at a reasonable cost. Very few people realize how expensive this care can be. I can not tell you how many times I saw the situation where the last few years of a client's life sucked up every last dime of their savings and there was nothing for them to pass on to their children/grandchildren/philanthropic causes. Or even worse, nothing left for their spouse to live on. And the state run facilities will chase you for EVERY LAST DIME. They don't care if their is nothing left for the spouse to live on.

    Now, leaving money in your estate may not be a priority to you. And that is completely ok, I was talking about clients who were planning on leaving $$ to the next generation in their estate. I personally believe everyone is free to use their money how they want.

    I am not yet 30, but purchased a long term care policy through my employer. I like the idea of, if I ever need long term care, my DH will not need to worry about where the $$ will come from (the events of the last few years have made me rather cynical towards 401k's, SS and Medicare) . I also look at it as a hedge against the rise in medical care costs, because as we all have seen recently they have dramatically increased in the past decade, and I don't see the increases stablizing anytime soon.

    I am sorry for the long winded response, and hope I didn't offend you in any way. I really do hope this helps you make the best decision for you

  4. #4
    Registered User frugalfranny's Avatar
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    Quote Originally Posted by forHISglory View Post
    We don't have long tern care insurance because we THINK we have enough in savings to cover this, if it is ever needed. We can't tell the future, of course.
    Agree about the life insurance also........

    BUT........and yes, we never know the future or can always think "I will take care of him/her at home"...........

    my father just died..........was in a nursing home for seven years with Alzheimer's and the monthly fee FOR JUST THE NURSING HOME ALONE WAS $4000........yes, FOUR THOUSAND a month. This did not count........any new teeth, any new glasses, any medication, any new wheel chair/walkers/etc. and the basic 'daily living things' that you need outside of food.

    Could you handle that if it happened?

    Yep......they keep taking until all assets are gone then you go on state assistance and don't believe for a minute that you will get the same sort of care.

    Just giving you something to think about.............

  5. #5
    Registered User forHISglory's Avatar
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    Thanks. And Andy, I'm not offended. After all, I asked for advice!
    Spiritual:
    "You are fearfully and wonderfully made." Please... respect life.

    Financial:
    Debt free, hoping to stay that way!


    MY BLOG: glorybug.wordpress.com


    1. Keep on writing.
    2. Get some balance in my life.
    3. Lose weight. Hopefully 20# this year.
    4. Continue to be looking for how God wants to use me this year.


  6. #6
    Registered User peanut's Avatar
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    I'm interested in this too. But we're in Canada, so things may not apply here. We have term...just a bit...till DH is 71. Then it disappears. The idea was to have a bit to take care of me should anything happen to DH during his working years.

    But we aren't prepared for the long term care costs. Here you can get government care if it's long term care. But it sure isn't the same as private care. Sometimes it's better. Sometimes it's worse. Depends on the private care situation.

    Right now, locally, everyone is so crowded they just fit you in where they can find a space! A lot of our hospital beds are taken up with people who belong in long term care but can't get there because there's no space. Private is way more expensive though. Just a basic seniors home is $2000-3000CAD/month! Everything else is over and above that. We just had a seniors home open up locally that is charging $4500/mth!

    What saddens me is to go visit these places and see such small rooms and crowded hallways and common areas. So sad...

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    Registered User melodys's Avatar
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    Ditto on the long term care insurance advice. It can happen at any age too. I was a caregiver to my husband through a ten year illness. The last three years or so we really could have used assistance, but since no long term care insurance there was no help. Long term care can also help with in home care.

    I cannot begin to describe the level of physical exhaustion associated with heavy duty care-giving. I was a caregiver, worked full time and have two children. I was widowed four years ago and in some ways I am still recovering from the experience. It took 18 months for me to recover my physical strength.

    I have long term care on myself because there is no one there to take care of me if and when that time comes. And in truth I would not want any other person to have the burden. I semi-jokingly tell my kids to push me off a cliff. (We have a thing for dark humor now.)

    I am now 42 years old.

  8. #8
    Registered User peanut's Avatar
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    Melodys: I tell my SIL to take me out to the back 40 and shoot me. I hear you about the dark humour.

  9. #9
    Registered User Josephhgoins's Avatar
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    Your question seems answered, and I just wanted to add. I am a 34 yo Single male. The closest thing I will ever have to children is my cat. My company has a life insurance policy on me that pays out to my mom (please no one tell her or I may turn up missing).

    I have a very good friend/co-worker that had to use all of these insurances with her Mother-in-law, husband and father. I remember the horror stories that she told me about the nursing home bills for her mother in law and father, both were in the same home and averaged about 10K per month total (both had Alzheimer's which requries quiet a bit more care than just being frail).

    I think it is time for me to get the long term care insurance as well. Thanks for bringing up a very good topic.
    total debt: $23977.09 updated 04/02/11

  10. #10
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    The life insurance I can agree with. We have some but we also still have young children at home.

    Long term care....definitely. Unless you're completely loaded, I just don't think people realize just how much they charge!

    Off to look into long term care insurance for us now....than you for reminding me!

  11. #11
    Registered User Lora88's Avatar
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    Long term insurance would have been a Godsend with the nursing home expenses My mother is in a home and the cost is ten thousand dollars a month and she has already been there 2 years 240,000.00 dollars gone a nest egg can disappear in a very short while Buy the insurance As for life insurance I am not a big fan but long term insurance in my opinion is a necessity
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  12. #12
    Registered User Lady_V's Avatar
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    LTC is definately something you will need to look in to unless there are plans to move in with your son and have his wife, children, friends have a hand in your care.

    I worked the other end. I did nursing home and in-home care. I would "forget" to bill 15 mins here or there because I knew the families were hurting financially trying to care for their family member. I couldn't "not" bill as I worked for an agency and I needed to get paid too. I always came early on those times so I wasn't taking money from the agency.

    My mother chooses to live "head in sand" and I know when she needs constant care, it will be down to me or a nursing home and depleting any and all savings (not that I think she actually has any).

    The Outlaws are VERY "well-off" and they have both elected to purchase LTC... and they are the type that they will hold on to a penny so tight you can hear Abe scream.

  13. #13
    Rude and Vile Master Greebo's Avatar
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    Quote Originally Posted by Josephhgoins View Post
    I think it is time for me to get the long term care insurance as well. Thanks for bringing up a very good topic.
    The odds at your age that you'll need it are remote to astronomical.

    Dave Ramsey says that you need it when you turn 60.

    Personally, I'm inclined to go 50-55.

    Mid 30s? No way.
    If you could kick in the pants the person responsible for your problems, you wouldn't be able to sit for a month.

    Did you know that a 4 year student paying $20,000/year who finances their education graduates with over $103,000 in debt to start? But a student who works and pays cash and takes 6 years to graduate ends with $6,300 in their pocket! So much for "getting a head start by financing!"


    Greebo
    (Nerd Spender): Loving and extremely patiently tolerated husband of ceashels.
    WARNING: Y Chromosome behind the keyboard. Adjust your listening filters appropriately!

    Three
    Two mortgages, two one no car loans, one no credit cards, and a partridge in pear tree!

  14. #14
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    I think if you can afford the insurance it is wiser to get it. Never thought I would be disabled in my late 30's. But yea, it happened. Just that you never know what can happen and on FV we all know it is better to be prepared.

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    Quote Originally Posted by shoiji View Post
    I think if you can afford the insurance it is wiser to get it. Never thought I would be disabled in my late 30's. But yea, it happened. Just that you never know what can happen and on FV we all know it is better to be prepared.

    This is what I was thinking too. I worked in a nursing home for a while and was amazed at the amount of non-elderly people that were being taken care of there.

    Yes, we would all like to think that we'd never need that kind of thing until we are well past our prime but accidents happen. Nursing homes and in home care are ridiculously expensive, even if you have a nice nest egg. That nest egg could be wiped out in less than a year, and then what?

    Sure you may never need the LTC insurance. But what happens if that slim chance is the one you're given?

    The thought of something happening to myself or my husband terrifies me...heck, I don't even want to be in a nursing home when/if I ever reach that stage in my life (dark humor here too) but I don't want to be a burden financially, physically and emotionally on my family either.

    So many tough decisions. I'd like to go back to Kindergarten, please. So much easier then!

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