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Long Term Care Insurance: As I Was Saying

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As I said in detail in a prior post, long term care insurance is not a solution for the custodial care of the aging. Giving a large share of your money to a private entity over 20 or 30 years, expecting in every case it will meet your needs that many years later, is a good way to pay and get nothing.

Today, according to Bloomberg News, MetLife announced it will halt the sale of long term care insurance. Fortunately for its long term care customers, it is a big company and long term care is a small part of their business, so profits elsewhere might allow claims to eventually be paid. Not so for a company for which long term care insurance accounts for a larger share of the business.  By using optimistic assumptions, such a company can divert a large share of premium payments to executive pay and bonuses, then run out of money 20 or 30 years later as its customers age.  Imagine you are 80 years old, you've paid in $600,000 to a company, if you stop paying you get nothing, but it will likely be unable to honor its claims?  At least Metlife pulled the plug early.

As The New Governor Prepares To Take Office

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The latest Current Employment Survey release from the New York State Department of Labor shows that local elementary and secondary school employment in the portion of New York State outside New York City increased by 11,400 future pension recipients from September 2009 to September 2010. Public school spending, staffing and pay has been off the charts in the rest of the state for decades.

In the past that has been at the expense of New York City, where local elementary and secondary school employment fell by 100 in the most recent September to September period. But now NYC school funding is higher, if lower than in the rest of the state — but with most of the added funding going to the retired. So local government employment in the rest of the state excluding the public schools is being slashed instead, by 32,600 in the most recent September to September period. In New York City, it fell by 5,800. State agencies are being gutted too. So what else happened in New York City?

In Frank Rich’s World – Nobody Can Win An Election

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Frank Rich in Sunday’s NY Times writes one of those pithy comments that make no sense if anyone thinks about it for more than a minute.

http://www.nytimes.com/2010/11/07/opinion/07rich.html?emc=eta1

You can’t win an election without a coherent message. Obama, despite his administration’s genuine achievements, didn’t have one. The good news — for him, if not necessarily a straitened country — is that the G.O.P. doesn’t have one either

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