21 Comments

  1. Most billionaires have LTC insurance. Cheaper to purchase when younger. Only 11% need nursing home for long periods. 84% can do home care. Cheaper and longer. High cost policies makes more money for agents.

  2. I bought Genworth. Low premiums have hurt them. In debt 2021. China’s trying to buy them. We’ll see what happens next year. They aren’t selling contracts. Government says they’ll help on premiums? I’ve had it sense year 1999. I’m 71 now and in great health.

  3. Wow, where do I start with this one….

    Dave Ramsey mostly does more good than harm….but he isn't a financial services professional. PLEASE find financial services professionals that you know and trust. Notice I said financial services professionalS (plural) because different agents/advisors will focus on different products and services.

    Obtaining LTC prior to 60 can help you to lock in both insurability and a lower premium. Jan is 55 which is a good age to lock in insurability. I wouldn't advise someone in their 40's to obtain Long Term Care, but 55 is a great age. Telling a 55yr old to wait 5yrs is…questionable. You don't know if she will have a medical event that could make her uninsurable prior to age 60.

    Also, and this is my biggest pet peeve with Dave Ramsey, all LTC plans are not created equal, just like all Whole Life policies aren't created equal. You can't make an ACCURATE judgement on whether or not a product is suitable for someone based on 30 seconds of gathered information, ESPECIALLY when you don't know which carrier the person is considering. What are the baked-in features your carrier offers with their LTC plans? What Riders do they offer? The devil is in the DETAILS!!!

    Dave should've advised Jan to speak to a trusted advisor about obtaining Long Term Care insurance. There are plans that offer a return of premium should you pass away before using any/all of your benefits. For someone doing as well as Jan, that would make FAR more sense than trying to self-insure.

    ALSO, while listing her assets, Jan only cited 250k that have been taxed (Roth IRA). Self funding could possibly require significant distributions that could result in steep taxes.

  4. Long term care is a bogus benefit. Less than 10% of people who go into a nursing home live beyond the 30 days Medicare covers. It is only worth it if you have a family history of a need for nursing home care. Also, carefully read the policy terms. What qualifies as “long term care” might make it very difficult to get the benefit. It’s akin to “disability insurance” which may never pay out because of what you need to have to qualify for the benefit.

  5. Great advice. We were being sold a plan for 7 years. When we learned the averages, we quickly changed. Also, since my husband is 60 and I 48, we decided to pay for him and not for myself til I’m 60. Thank you

  6. His numbers are way off! I'm in one of the poorest states with the cheapest care and the average here per year is over $90,000 a year.

    I've been through FPU and Dave gives solid advice about saving money but he lies constantly about insurance, annuities, and long term care. If he really has as much money as he claims than he could afford a better research team to get him more accurate numbers.

    Everyone needs long term care insurance! Even if you have millions of dollars, why on Earth would you want to spend it??? No one pays in more to a LTC plan than they get out of it unless they die early.

    Look at all of the major insurance companies that used to offer LTC plans and don't anymore because they lost a fortune.

    John Hancock
    MetLife
    BlueCross/BlueShield
    Etc etc etc.

    It is a loss leader for insurance companies. They offer it in hopes to get other business from you.

    If you want to know the real numbers in your area you can download the Genworth Cost of Care App. Based on zip code you can search for what it currently cost for a room, private room, daycare, in home care, etc.

    You can also do a little research to find out that his 2.4 years per person is wrong as well.

    Men do tend to need the care around 2 years unless they have Dementia or Alzheimer's. Then they are likely to need the care much longer.

    Women need this Care on average around 5 years. Some much much longer. The healthier you are now, they longer you are going to need care.

    If anyone needs help getting a plan in place just let me know

  7. If anybody would like to learn more about Long-term Care and the current options available, I work for a top, fortune 100 insurance company and would love to share some insight. Message me back and we can set up a conversation.

  8. Don't really understand why Dave would be questioning the purchase of LTC before 60yrs. Isn't that better to receive lower premiums? I think that is the reason why the caller was purchasing. With the plan on not using for another 25+ years.
    Does anyone here have more information on the best policies to get and at what age to lock in the best premiums? I'd be willing to spend $50k in overall premiums throughout the years to avoid paying out of pocket expenses in the future., which in my area is currently $80 to $100k a year.

  9. I bought my first LTC policy in my late 40's when offered by my Sate government job as a new benefit…I was even able to get my Mom who at the time was in her early 60's a smaller policy as my family member. Although that was 15 years ago the low rate was attractive…and so glad I did it…. I have since lost my Mom a couple of years ago…but it gave both of us a better feeling of ease in case either needed care….not so much for nursing home…but the for home health aide benefit…so we could stay in the home but have care a few hours each day…this is what can wear down family members quickly…I know this as I am a Registered Nurse and see it all the time……. once I moved to another job I even took advantage of their better LTC policy and bought another policy to layer that is tied to inflation. I have a modest nest egg…and felt I needed LTC policy to help….since I bought at younger age both of my policies together cost me around $125 month…. I feel it is worth it….if I had waited until now I am in my early 60;s I would be paying 3 to 5 times as much…and might not be able to afford now…..

  10. The reason I decided to self insure is the policy is capped. Even with a $6,000 plus a year premium, the policy maxes out at $385,000. Assuming $100k a year nursing home needs (which is conservative), that only lasts less than four years no matter what. Just hope you're not one of those "lucky ones" to live longer than the average.

Leave a Reply

Your email address will not be published.