Long Term Care Insurance

So this is really more of a financial planning post but I have heard several financial planners say to either self insure for long term care costs or do a hybrid policy. The reasoning is that the insurance is very expensive, they often raise the premiums and it is almost impossible to get paid out. I am going to look into a hybrid policy where it is a combonation between a life insurance policy and long term care policy. My understanding is that it is not a very good return on investment for life insurance but is very good for long term care as you essentially present the bills and they pay you directly without all of the obstacles in place like a long term care policy. Not sure if anyone here has a hybrid policy but if they do I would be interested to hear how much the premiums are.

My financial planner sent me roughly 5 different types of long term care insurance and we did have a hybrid in the mix. My financial analysis said they were all high cost pre-pays. Said another way, they are not insurance in the way that car, boat or home insurance is. We are certain to die and likely to need help later in life. These policies are like a form of budgeting. They do nothing to protect you from long term care costs (e.g. long term care in a nursing home)

At one point, I was a bit upset with my planner for sending these my way. He did not tell me they were expensive pre-pay's and when I told him, he said he agreed but wanted us to make a informed choice. My view is that not everyone is versed in the time value of money and he should have told me he did not think these were very good.

I’ve not heard of hybrid policies but I have more experience than I’d like with trying to help my folks with their long term care policies. As the OP outlined, they are expensive, you have no control over rising premiums and it’s damned near impossible to get any payout. My Dad is 97, very close to legally blind, extremely hard of hearing but since he can eat the food that the assisted living facility places in front of him and still wipe his butt on his own he doesn’t qualify for any of the benefits that he’s paid premiums on for 40 years.

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Originally Posted by tcesni

I’ve not heard of hybrid policies but I have more experience than I’d like with trying to help my folks with their long term care policies. As the OP outlined, they are expensive, you have no control over rising premiums and it’s damned near impossible to get any payout. My Dad is 97, very close to legally blind, extremely hard of hearing but since he can eat the food that the assisted living facility places in front of him and still wipe his butt on his own he doesn’t qualify for any of the benefits that he’s paid premiums on for 40 years.

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That is so bad. So I was wrong, it is like normal insurance :thumbsdown1:


As someone who started preparing for retirement about 2 years before my actual date, I tried to prebuy things like a boat and newer vehicles. I think that might be the alure of these policies to many people but until you have it and try to use it, you do not know what you have.

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Originally Posted by tcesni

I’ve not heard of hybrid policies but I have more experience than I’d like with trying to help my folks with their long term care policies. As the OP outlined, they are expensive, you have no control over rising premiums and it’s damned near impossible to get any payout. My Dad is 97, very close to legally blind, extremely hard of hearing but since he can eat the food that the assisted living facility places in front of him and still wipe his butt on his own he doesn’t qualify for any of the benefits that he’s paid premiums on for 40 years.

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That is really bad. Borderline fraud.

It is a Racket Business . Companies are owned by subsidiary companies and after a while just go out of business . The policy sold is just worthless . Take a look at all the paperwork and fine print . Would take a lawyer a long time to fully go over it . A layperson has no chance . But if you are going to buy a policy . Make sure it has custodial care in it . Be careful of scams .