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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: JimisJim who wrote (24471)	3/9/2016 6:05:15 PM
From: E_K_S	2 Recommendations Recommended By geoffrey Wren research1234 Respond to of 34328

OT - Long Term care insurance My aunt had LT care insurance and the company that underwrote the policy had financial problems and required earlier policy holders to pay higher rates in order to keep their policies active. At the time, her policy premiums were fixed. She paid the higher rates another 10 years before she needed to use it. Long story short, she never got the full benefit of her policy as reimbursements were limited and the underwriter merged and/or went out of business and did not cover her expenses as expected. By the time she went into an assisted living home, she was there for three months before she died. I believe she paid in almost $80K in premiums over the life of her policy. She would have been better off to just invest in TBills and then cash them in to pay for her assisted living stay expenses (at the time it was around $4K/month). FWIW, the assisted living manager said that the average stay at their facility is/was less than a year. . . . and then you die! I think the best way to manage this is to either have family and/or bring in a home healthcare worker in from the Philippines. For my aunt, I hired a health care worker to "senior sit" during the week. That person provided company, helped w/ shopping, cooking and cleaning and was there only a few hours each day. My aunt died at 93 and had cancer which was treated but died from the radiation treatment. She was at most 87 pounds. She had plenty of money in her estate w/ the bulk of her assets in a home (all paid off) and mutual funds. Her mutual funds were not the lowest cost but were well balanced and diversified. She also had a Federal pension. When she died even w/ the LT care fiasco, she had enough just in her mutual funds to stay in the assisted living home for at least 7 years and much longer if she invested her long term care premiums in mutual funds. She could have always sold her house (valued at $350) if she needed more money. EKS