New Ways to Pay for Long-Term Healthcare

Good Article on MarketWatch, titled "New Ways to Pay for Long-Term Healthcare". 

I can't get comfortable with long term care insurance. I have met many long-term care specialists that sell this product and they all will tell you that you have to have it. My understanding is that you sign up today and if the group of participants for the product you signed up for submits claims over what is expected by the insurer then the premiums go up. You have the alternative to keep the premiums low by increasing deductibles etc. To me this guts the insurance. This is an illustration of what happened to a client after year four with a long term care insurance policy from one of my trusted advisors. In the end the choice was to pay the higher premium or modify the policy. So I am 50, I am supposed to sign up today and write checks for the next twenty five years and like it for something I may never need. in addition, based on the illustration above, if the product group claims exceed estimates regardless of my personal claims, then the premiums can go up. I am sure this product has merit for some people but I would prefer more tangible things when I have to cross that bridge, like a government insured Reverse Mortgage on real estate that I own and occupy. If I need the money it is available and if I don't I still have my home equity and my roof over my head. As someone who is conservative with money and skeptical of fancy financial products, this would be my personal preference.

What do you think? 

George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Helping seniors with Reverse Mortgages in Virginia, Maryland and Pennsylvania.

Questions/Comments encouraged.