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Strategies & Market Trends : Dividend investing for retirement

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To: chowder who wrote (7014)	12/31/2010 11:39:43 AM
From: E_K_S	Read Replies (1) of 34328

Hi Dabum3 Our family has had bad experience w/ Long Term Care insurance. It's sounds good in theory but the big question is the financial condition of the company providing the insurance. My aunt carried this type of coverage for over 20 years but when she needed it the subsidiary for the insurance company went BK. She lost over $50K in life time premiums she paid. Also, the specific policies are very strict as to what long term care provisions are covered. She needed two weeks of assisted nursing care after treatment for radiation cancer therapy. This was not covered in her "all inclusive" policy. At age 88 her cancer was unexpected and after the chemotherapy she was moved to an assisted living center where she died in 90 days. She would have been much better off taking her Long Term Care premium payments and investing in dividend paying stocks, mutual funds or even U.S. Treasury's (using a maturity ladder approach). In her case, she could have just sold her stocks or cash in the treasuries as she needed the money. As she was a retired government employee, she had the best medical insurance so all of her health care costs were pretty much covered EXCEPT for any type of long term assisted care living expenses. As it turned out, she only needed to pay for three months of this as she passed away from the cancer. Her estate received nothing from the Long Term Care insurance company even though she had a vested policy. This was one of the provisions that made her buy into the policy. The company was BK and any vested monies from the policy disappeared too. My plan is to self finance any Long Term care expenses through a diversified portfolio made up of predictable dividend paying stocks and bonds. My family can cash them in as they need to pay current expenses. Anything left over will go to the estate and distributed to the beneficiaries according to the Trust Agreement. EKS

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