FAQ Category Archive: Consumer

Hi. I am a 62 year old woman with Parkinson’s disease. I took an early disability retirement in 2007. I signed up for Calpers long term care insurance in 1997 after I attended a presentation at work. They said that Calpers was self insured and at that time was not asking about pre-existing conditions or requiring any doctor letters or file copies. They said the premiums were low and were going to stay low. So I signed up. Since then I have always payed the max amount in order to keep the max coverage. Now my symptoms are worse and I need to move to assisted living to get the help I need. I recieve Social Security disability and retirement disability from the state. Once I start receiving benefits from the LTC policy will my retirement or social security be reduced?

Hi Lynnette. I am so glad you contacted me. First, I am so sorry you are having to deal with Parkinson’s disease. Second, you were so smart to take out the CalPers policy when you were only 47 and still working. It’s so important to get LTC insurance as young as possible. Now for the …

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If our employer doesn’t offer LTC, where do you recommend we get it? No doubt some companies are better than others…where do I get a recommendation? T.S.

Congratulations for contacting me and realizing how essential it is to seek more information about planning for long-term care with long-term care insurance!  Do let your employer know you are interested in having it available as a benefit as sometimes the employer will seek a plan out for you and the other employees with a one-time …

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How can I find out WHO has the largest number of insurers – therefore least likely to raise rates or discontinue selling insurance in the next 20-30 years, based on the law of large numbers. Surely this is listed somewhere? Thank you! Carol

Hi Carol – the National Association of Insurance Commissioners publishes The Long-Term Care Insurance Experience Reports each fall for the preceding year. It has the number of people insured and the ratio of premium to paid claims for each insurance company three different ways: by each product, by type of product such as individual or …

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What if your Long Term Care insurance goes bankrupt? or you were told that your premiums would never go up and they have increased so much in the past 11 years (from $69 to $189) you can no longer afford the premiums. Can I get my $13,000 back and cancel? My policy is with CalPers Long Term Care. G.P. Idaho

I’m sorry that you have experienced so many rate increases. No, you can’t cancel and get your premiums back. But maybe I can help you feel a little better about your situation. You have paid $13,000 in premium over 11 years. The cost of care in Boise, ID is about $200 a day for 10 …

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One of our friends was in a nice assisted living facility shortly before she passed. We were told by their staff that depending on what type of LTCI a person has it may only cover rent, and food but not medical care. Is that true, and if so what questions do we need to ask our insurance agent about this before purchasing a policy?

Hi Nancy – the room and board is the bulk of the charge in an assisted living facility and it can vary by how much care a person needs. For example, it is common for the cost for an Alzheimer’s patient who requires constant care to be higher than someone who needs help with bathing …

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Should I Obtain Long-Term Care Insurance For My Parents or Adult Children?

Only if your lifestyle is important to you. Of all of the messages you’ve read over the past few weeks about your new group long-term care insurance plan, this one may be the most important. Becoming a primary caregiver overnight can alter your lifestyle dramatically. Consider this simulated “real-life” situation:   Bob and Mary work …

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What is your opinion about a shared policy for couples compared to each person getting an individual policy?

You are asking about the shared care benefit and I think it’s a great concept. It came about as the unlimited benefit period became more expensive (only a few policies even offer it now). With a couple, the chances of both needing a lot of care are slim, but who knows which one will actually …

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I saw the huge bills created as my mother got sick and ultimately died. Now, it absolutely terrifies me that one day I might be in that same position. I hope you can shed some light on a way to get LTC insurance if your are not financially well off. (I am single with no kids.)

It’s especially difficult for single women to contemplate being alone without adequate care as we age. The type of policy that could work best for you would be a facility only policy. It pays for assisted living facilities as well as full scale nursing facilities.  It doesn’t pay for home care, but a single person …

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I have just turned 68, and my wife and I are trying to determine what is most important in a longterm healthcare policy. You stress the importance of getting the inflation protection, as well as being sure that we can afford the premium when we stop working. At our age (wife is 67) what do you recommend?

Assuming you are healthy enough to qualify for long-term care insurance, you will want to consider a monthly benefit that is large enough that you can make up the difference between it and the cost of care. At your age, you can consider 5% simple inflation which costs less than 5% compound unless you have …

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I have delayed purchasing LTC insurance and will be 68 yrs. old this year. Should I lower the amount of monthly coverage and/or the period of payouts or both just to get some protection?

At least you are thinking about long-term care insurance now!  Pat yourself on the back for that. Don’t lower the monthly coverage unless you can make up the difference between the cost of care in the area in which you intend to live out your life and the monthly benefit you purchase. You can shorten …

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