Opinions on longterm care insurance please
This seems to be the current 'trend' in must-have insurance coverage, being pushed by everyone from insurance agents to banks and financial institutions. Now I admit that the cost of longterm in-home care, if needed, can be devastating. However, as in any type of insurance that isn't required (basically anything other than auto insurance, or homeowners if you have a mortgage, is strictly up to you and your budget), it's a cr#pshoot. (Gotta love Chris Rock's routine on insurance: "We buy insurance in case $*!t happens. So if nothing happens, shouldn't we get a refund?!?")
Anyway, I figured out that IF I were to buy one of these policies now and live to be 98, over time I would end up paying out more than $60,000 in premiums for coverage that would pay up to $3500/month for longterm health care IF I should ever need it. I couldn't borrow against this kind of policy (as is possible with life insurance) nor does it pay dividends. I am already paying almost $6000/yr for car insurance (male under-25 driver in the household) plus $2600/yr for homeowners insurance. At the moment, I don't even have basic health insurance because an individual policy would cost me $12,000/year in premiums. Where does it all end...?
But I am wondering what the overall opinions of THS members are, regarding the value of longterm health care insurance. Do you have or would you get it? Do you think it is more or less valuable than other types of "catastrophe" insurance? If you were to buy it, at what age do you think it makes sense to start? The younger you are, the lower the premiums but the longer you pay them; the older you get, the higher the premiums... so it sounds as if it all comes out to the same amount of money in the insurance company's pocket in the end (what else is new).