Interesting on long-term care insurance (#PFD)
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John Gear
Nov 25, 2014, 11:50:35 AM11/25/14
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John Gear Law Office
A values-based Oregon law practice serving consumers, elders, employees, and nonprofits
503-339-7787
Typographical errors are all Siri's fault
>
> Bloomberg
> November 12, 2014
> Maybe You Don't Need Long-Term Care Insurance After All
> By Ben Steverman
>
> The biggest threat to a retiree's nest egg isn't a stock market crash. It's a long illness requiring round-the-clock care.
>
> The statistics behind that scenario -- $81,000 a year for a nursing home, $184,000 for 24-hour home care -- are what sells long-term care insurance policies. But while past research suggested that many more people needed the coverage than bought it, a new study suggests that most people should just skip it.
>
> The study, by Boston College's Center for Retirement Research, focused on singles, who now make up the majority of Americans. Long-term care insurance makes financial sense only for the richest 20 to 30 percent of unmarried people, it finds. For the rest, it makes more sense to go without. If they need care, spending down their assets and then letting Medicaid pick up the tab is the most practical solution.
>
> Long-term insurance can pay off for wealthier singles, even under the Center’s new math. It takes $260,405 in assets, or about $90,000 in annual income, to put a household in the top 25 percent, the Russell Sage Foundation and the Congressional Research Service estimate. These affluent customers can afford the premiums, and insurance can protect their heirs' inheritance if that's a goal. The same logic works for couples, but only if they're even wealthier. Webb warns that forthcoming research will show long-term care insurance makes even less sense for married couples than it does for singles.
>
> http://www.bloomberg.com/news/2014-11-12/maybe-you-don-t-need-long-term-care-insurance-after-all.html
>
> Report from Center for Retirement Research at Boston College
> http://crr.bc.edu/briefs/long-term-care-how-big-a-risk/
>
> Mediciad.gov - Community-Based Long-Term Services & Supports
> http://www.medicaid.gov/affordablecareact/provisions/community-based-long-term-services-and-supports.html
>
> ****
A values-based Oregon law practice serving consumers, elders, employees, and nonprofits
503-339-7787
Typographical errors are all Siri's fault
>
> Bloomberg
> November 12, 2014
> Maybe You Don't Need Long-Term Care Insurance After All
> By Ben Steverman
>
> The biggest threat to a retiree's nest egg isn't a stock market crash. It's a long illness requiring round-the-clock care.
>
> The statistics behind that scenario -- $81,000 a year for a nursing home, $184,000 for 24-hour home care -- are what sells long-term care insurance policies. But while past research suggested that many more people needed the coverage than bought it, a new study suggests that most people should just skip it.
>
> The study, by Boston College's Center for Retirement Research, focused on singles, who now make up the majority of Americans. Long-term care insurance makes financial sense only for the richest 20 to 30 percent of unmarried people, it finds. For the rest, it makes more sense to go without. If they need care, spending down their assets and then letting Medicaid pick up the tab is the most practical solution.
>
> Long-term insurance can pay off for wealthier singles, even under the Center’s new math. It takes $260,405 in assets, or about $90,000 in annual income, to put a household in the top 25 percent, the Russell Sage Foundation and the Congressional Research Service estimate. These affluent customers can afford the premiums, and insurance can protect their heirs' inheritance if that's a goal. The same logic works for couples, but only if they're even wealthier. Webb warns that forthcoming research will show long-term care insurance makes even less sense for married couples than it does for singles.
>
> http://www.bloomberg.com/news/2014-11-12/maybe-you-don-t-need-long-term-care-insurance-after-all.html
>
> Report from Center for Retirement Research at Boston College
> http://crr.bc.edu/briefs/long-term-care-how-big-a-risk/
>
> Mediciad.gov - Community-Based Long-Term Services & Supports
> http://www.medicaid.gov/affordablecareact/provisions/community-based-long-term-services-and-supports.html
>
> ****
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