Insurance advice for a 66 year old newbie, please

[LoveOakland]

Hey everyone.  So glad I found this site.  (Actually my brilliant daughter hooked me up.)  I have a question about long-term care insurance included in life insurance policies.

I know life insurance is a bad investment.  However, I am 66, have no retirement (real estate-related bankruptcy in 2009), am divorced, have one grown (brilliant, as I mentioned ;-) ) child.  I love my job, for which I earn good money, and so have no plans or desire to retire.

I am loathe to become a burden to my daughter if my health fails.  I come from a family with amazing health and longevity, so I don't expect this to be a problem for a long time, but one never knows...

I'm hearing about life insurance policies that include long-term care.  I'd LOVE to have a long-term care policy for all the obvious reasons, but they are exorbitant.  From what I understand, getting life insurance with a LTC benefit makes LTC affordable.  Otherwise I would probably never consider life insurance, especially since my uber-independent daughter assures me and her dad she has no need for us to leave her anything when we die.

Thoughts?  Suggestions?  Warnings?  Anything would be much appreciated.  Thanks!!!

[MayDay]

At 66, I doubt there is anything affordable that you can buy. The odds are too high you'll need to use it in the next 10 years.

My suggestion is to cut your expenses and save.

You mentioned no savings due to bankruptcy 10 years ago- have you not been saving anything in the last ten years?

[frugaldrummer]

From what I understand, getting life insurance with a LTC benefit makes LTC affordable

I would imagine this is only true if you also need life insurance anyway? Or is this some kind of new thing where the life insurance is assigned to them so they recoup your long term care costs when you die by cashing in on the life insurance? 

If you have no savings I'd focus on that first. If you need long term care you will be required to spend down all your assets first but then should qualify for medicaid coverage of a nursing home.

[Villanelle]

So you want to buy a product you don't need in order to make one you do need cheaper?  It's seems extremely unlikely that life+LTC is going to cost less than just LTC (assuming the same terms on the LTC portion).   This is a bit like buying two sweaters because they are buy one, get one 50% off.  That second sweater may be cheap, but it's a sweater you don't need or want, and you are still spending more money than if you'd have just bought the one sweater (or type of insurance) and left the "discount" on the table.

At 66, you are going to find both LTC and life insurance to be fairly expensive.  You are better off cutting your expenses (and increasing income if possible) and saving, and then self-insuring against future disability.  If it is is your wish, you can also let your child know that you don't want her to spend her money to get you better care or a nicer facility, which would remove much of the potential problem. The state generally can't force her to spend money on your care, and thee are options for those who can't pay, they just usually aren't the most desirable options. 

[mistymoney]

If you earn good money, why aren't you saving now?

Start saving! You may be feeling good about your work situation now, but at 66 this isn't going to last long-term.