Or your spouse/partner ruins their health playing caregiver to you trying to save the money for the kids or for LTC for themselves later.I’m aware there are lots of good arguments on both sides here, but my comment is limited. Why not self insure (or self fund, for the purists) is a very legitimate question.I have the same first reaction as you. Why not self-insure, which I have done.Just about every party I attend (I'm in my 50s) people start talking about long term care insurance (LTCI) and how they are getting it.
But I don't understand it from multiple perspectives. Firstly, most of these policies are capped at close to $1M and all of these people easily have $1M to spare.
Secondly, and most importantly to me, why would you want to prolong your life when you are mostly sitting at home (best case) by yourself with minimum interaction. I'm not trying to be mean, I just saw it happen with numerous people and they genuinely looked miserable and often ashamed they were taking up so much time/money.
1. You may get to that place of needing care but you no longer have the assets, for whatever reason.
2. LTCI premiums are partially deductible, and the policy payouts are not taxed, whereas if you self fund you use post tax money, I think (maybe a tax person can confirm).
3. If you have $20k/mo to spend on an aide at age 90, you (or your family) may not be able to stomach the idea, so you might skip needed treatment or consent to a cheaper arrangement that isn’t best for your condition. Whereas if you have coverage, it can be used only for your care.
That's why we will be purchasing LTCi...to ease the burden on the caregiving spouse or our children.
Having seen Mom spend the better part of a decade bedridden, completely unresponsive, due simply to the progression of her dementia (no co-morbidities) I have also written a very restrictive health care POA, i.e. palliative care only in the event of any terminal illness, including dementia.
Statistics: Posted by ncbill — Sun Aug 04, 2024 4:15 pm — Replies 170 — Views 16222