Berkeley Parents Network: Long Term Care Insurance

Berkeley Parents Network

Long Term Care Insurance

Berkeley Parents Network > Reviews > Insurance > Long Term Care Insurance

July 2002

Does anyone have any experience with or opinion about long-term care insurance? Is it a good deal, or a bad idea? I'm considering buying long-term care insurance for myself because I do not want to burden my child with the cost of long-term care in the event that (or when) I'm unable to care for myself. (I'm a single parent older mom.) Your input is appreciated. Thanks much!

I'm interested in other responses to the long-term-care insurance question. I, too, am a single mom (and getting older every day!), and I decided to get the insurance a few years ago, since the premium is partly determined by age. Like you, I knew there was a possibility of becoming an extreme burden on my child if I were to need this kind of care, and I figured it was in both our interests for me to get the insurance. If I ever needed it, it would MORE than pay for itself, and if I didn't need it, it was still a reasonable price to pay for peace of mind. I've seen some medicare-only nursing homes, and nobody would want to be in most of those if they had any choice. Through PERS, I pay $456 a year for this insurance. At this rate, if I paid for, say, 30 years, I'd still have paid less than $14,000 total. If I needed the care at any time, for even six months, I'd be ahead of the game, since this kind of care is EXPENSIVE. I'm willing to pay $14,000 over 30 years to know I wouldn't be warehoused and my child wouldn't be sent to the poorhouse if I needed long-term care. Any financial types out there with more/different info? Anonymous

If you are an UC employee, you may be eligible to participate in the long-term care insurance that CalPERS offers. I enrolled in that program out of the same concerns you voiced as an older, single parent. My cost is about $30/month. The cost depends on coverage options selected and age. After UC retirement, one can stay on the insurance. You can learn more about the CalPERS' plan at this web site: http://www.calpers.ca.gov/longtermcare/apply/. Looks like the current deadline for enrolling is July 31. There are other plans to choose from; I just don't know anything about them. anon

I am strongly in favor of long-term care insurance. I have had great anxiety about my own parents ability to care for themselves -- they did not plan ahead well financially, both have complex and costly diseases (cancer & diabetes), and I have concerns about their diminishing abilities to take care of basic tasks. After helping them move from a house into a condo two years ago, I immediately signed up for long term insurance through my work, and picked the most comprehensive, inflation protected plan. I never want my kids to worry about that!

I did not check out many plans thoroughly...I am a member of Cal PERS, which offered a good, low cost plan. But the rates were inexpensive for me (at age 35) and I could lock that price in forever. If you can afford the premiums, you can get plans which cover in-home care, not just nursing homes.

I think it's a great idea, and encourage you to do it. meg

Jan 2002

I am trying to decide about keeping Long Term Care Insurance for my elderly parent, and I would appreciate any advice from someone who has had a parent in long term care. The insurance is expensive. My mother has no assets to speak of, so we don't have it to protect her finances --- we are carrying it on the theory that she will have better care in a nursing home with private insurance than with Medical, if a nursing home should become necessary. She is in her mid-70s and in excellent health. The tradeoff seems to be: is it better to have a better level of care in a nursing home later, or is it better for her to enjoy the money currently going to insurance while she's young and healthy? (The premium -- which I pay -- would be a lot of money for her, with her small income from social security, if I just gave it to her instead of the insurance company.) Since this is comparing apples and oranges, there may be no right answer. I have consulted HICAP folks, but frankly speaking the people that I talked to didn't seem to have any more insight than I do, which is not much. Part of the question is -- how much better is nursing home care if you have private insurance versus Medical? Another is: how likely are we to need it -- what fraction of healthy people in their 70's eventually need long-term care? I would really appreciate any thoughts from someone with some experience with an elderly parent or relative in long term care. Thank you! Anonymous

I can't speak to the quality of care issue with private insurance vs. MediCal, but there is a very useful book that deals with long term care issues, including the pros and cons of such insurance. It is "Avoiding the Nursing Home Trap" by Nolo Press, the well-regarded legal self-help press in Berkeley. You can probably find the book in the library if you don't feel like buying it. I am thinking about sending copies to both of my parents as well as my in-laws to give them some useful information and open the door to discussions of what happens when they get old and need help caring for themselves (and how will we pay for it). Good luck.

A lot of people don't get to the point of needing a nursing home but do need help with activities of daily living in their current home (bathing, dressing grooming, housecleaning, meal prep etc). If your mother should have a health problem that affects her ability to do these things then family needs to provide this support or pay someone. If your mother gets on MediCal (she can own her home but has to live in it and have less than $2000) the county will pay someone just over minimum wage to help, which often means not very good service. I would suggest that you check out the coverage for this service in your Long Term Care Insurance Plan - it is a service that seniors can use for years and stay living at home. Be sure that it is not limited to a short period of time. My grandmother had someone take care of her in her home for 15 years. Elizabeth

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