Long-Term Care Insurance and Tax Breaks for Hybrid Annuities

Did you buy some annuity product earlier this decade that allowed some provision for long term care insurance too? If you did, and weren’t really sure of the benefit, next year might be the year that you do. In 2010, you will be allow to withdraw money from a certain kind of annuity without paying taxes as long as you use it to pay for qualified long-term care coverage. All baby boomers, especially those in the highest tax bracket, can thank the Pension Protection Act of 2006 for this new, fortunate development

1. New popularity for an obscure annuity.

In the mid-2000s, a new kind of non-qualified deferred annuity emerged, the hybrid annuity, structured to provide either a long-term care benefit or a death benefit. It was designed as a less expensive alternative to a traditional long-term care policy. So far, these hybrid annuities with long-term care riders had been little publicized, but all that is about to change. Before 2010, you could make withdrawal from these hybrid annuities without facing penalty or surrender charges, but part of the withdrawal could be subject to tax. Starting in 2010, any withdrawal from such an annuity will be income tax-free if the money goes towards qualified long-term care. So in 2010, if $100,000 you initially put into hybrid annuity with long-term care rider has grown to $250,000, you can pull the entire $250,000 without a tax hit, if that $250,000 will be used to pay for qualified long-term care coverage. You wouldn’t even pay taxes on the $150,000 gain of the annuity. If you are simply withdrawing small amounts from the hybrid annuity to help pay for long-term care, those tax-free withdrawals will be taken from the principal of the hybrid annuity and not the gain of the annuity. That is the by-law under the new tax treatment.

2. Can You exchange a tax shelter into a hybrid annuity?

You sure can. The Pension Protection Act also allows you to make a 1035 exchange into a hybrid annuity starting in 2010. So you can exchange the annuities you have now for one with a long-term care rider that would permit you to withdraw entire value of the annuity to pay qualified long-term care costs, tax-free and penalty free. If you are looking to do an exchange with an existing policy, be sure to make sure that the current policy doesn’t have a death benefit or income guarantee that you might be giving up. This kind of goes without saying, too; but also make sure you don’t have a substantial surrender penalty.

3. 2010 is a time to learn more.

Could these hybrid annuities prove useful to you in paying long-term care costs? Are they suitable for your overall financial picture? You, and only you, are going to know the answer to that question. You definitely want to meet with an insurance or financial professional to take a closer look at your situation and find the potential tax break that could be offered to you.

For more information Contact Dane at LongTermCareInsurancePros

Long-Term Care Insurance Is Not Expensive

One of the great misperceptions about long-term care insurance is that it's expensive. One argument goes, "it's expensive because I could pay for something I never use."

Would you say the same thing about your homeowner's insurance? "It's a waste if my house never burns down." Or your car insurance? "I'd better total that car so I get my premiums back." Of course you wouldn't make either of these statements. That's because you know that every day many people have bad car accidents and every day house fires happen. You count yourself quite lucky when they don't happen to you.

The same is true for long-term care insurance. Every day many people submit a claim on their long-term care insurance policy. According to the American Association for Long-Term Care Insurance some 180,000 individuals are receiving benefits from their insurance coverage yearly. Some $8.5 billion is paid out annually.Long-term care insurance is incredibly valuable protection to have should you need it. Consider yourself lucky if you live a long life and never need long-term care.

For those who are still not convinced, I'd like to share two real examples of individuals who purchased long-term care insurance. These are real people with the information provided to the Association by the nation's leading insurance companies at the beginning of 2009.

COMPANY A: Largest open claim: $1.2 million.
The individual (a woman) purchased long-term care insurance at age 43, paying an annual premium of $1,800. Three years later her claim began and has continued for almost 12 years ($1.2 million in benefits already paid).

COMPANY B: Largest open claim: $1.02 million.
The individual (also a woman) purchased long-term care insurance at age 72 paying an annual premium of $12,766. Three years later her claim began and has continued for almost 9 years ($1.02 million is benefits already paid) for her nursing home care.

Individuals between the ages of 55 and 59 paid between $700 and $6,950 for long-term care insurance according to a new report from the trade organization. People are taking advantage of readily available discounts to and policy design techniques to reduce the cost of coverage. You can too.

The cost for long-term care insurance coverage is based on a variety of factors. Some you have no control over such as your age and current health when you apply. Others are choices that can significantly impact what you pay. Understanding how to take advantage of applicable discounts and saving techniques can reduce the cost by 20-to-50 percent yearly.

Spouses as well as partners residing together can take advantage of the most significant discount available today when both parties purchase coverage. The discount can be as much as 40 percent applied to both policies. A number of insurers will even offer the discount when only one individual purchases coverage or can health qualify.

If you would like more information, please call Dane Petchul, LTCP, CLTC at 949-854-3001. Visit my website Long Term Care Insurance Pros for more information. I can help make this important protection more affordable than you might think.

Health Care Costs Can Lower Your Tax Bill

This may be the year to take a tax deduction for medical expenses. This write-off has long been one of the least useful for most taxpayers because medical costs have to be a significant percentage of income to be deductible.

With health-care costs rising, the medical deduction is worth looking into with your accountant. The medical deduction covers a wide range of expenses.

For complete details see Internal Revenue Service Publication.

Here are some basics:

To be deductible, a medical expense must be paid with after-tax, out-of pocket dollars.

Insurance premiums paid with pretax dollars aren't deductible and neither are medical expenses that are reimbursed by insurance, flexible spending plans or health savings accounts.

The Internal Revenue Service has announced the 2010 limitations on the deductibility of long-term care insurance premiums from taxes. For the first, the maxiumum deductible limit for an individual exceeds $4000.
For complete details see: 2010 Tax Deductions

Simplify Your Long-Term Care Planning with a Long-Term Care Specialist!

Long-Term Care Awareness Month is November

During Long-Term Care Awareness month which is always in November, it is wise to become aware that the younger you are, the healthier you are.

When it comes to long-term care insurance, a significant number of consumers cant' get what they want simply because insurance professional failed to share one significant fact with them: the need to health qualify for protection.

Each year, the American Association for Long-Term Care insurance surveys leading insurers to find out how many individuals apply for coverage but are declined for health reasons.

Qualifying with good health and even getting a "good health discount" is the important message you should take with you during Long-Term Care Awareness month.

It is important to begin the long-term care planning process while you are healthy and have all the planning options available to you.

Think about your next physical, how often does a 50-year-old leave their doctor's office without some sort of prescription in their hands or a new diagnosis. A health condition or single prescription may not preclude you from obtaining coverage, but it costs nothing to find out earlier than when it's too late.

It's never too early when it comes to long-term care planning. Find out what options are available to you while you have all the options available to you.

For more information and a free consultation: LongTermCareInsurancePros

Long-Term Care Premiums Could Go Up, So Is It best not to purchase Long-Term Care Insurance?

There is a conception that you should not purchase long-term care insurance because the premiums could possibly increase in the future.

While none of us likes cost of living increases on any of the goods or services that we use and benefit from, we do not forgo the comfort or protection they provide simply because their cost could increase in the future.

Almost everything in life, necessities and non-necessities, increase in cost over time, but that certainly does not keep us from enjoying and benefiting from them.The media has emphasized all the "bad" regarding increases in the premiums of the long-term care insurance carriers.

Twenty years ago when long-term care insurance products were new, the actuaries (the experts who analyze and study the data) were incorrect in determining the correct premiums. They made assumptions that there would be greater lapses of the polices as well as what the claims were to be. So, twenty years later, adjustments were made to the premiums.

Today, there is better data and newer plans with better pricing too.It is also important to know that almost all long-term care insurance policies include a provision called "waiver of premium." this provision states that once a person is received benefits from their policy, the premium for the policy ceases or is waived. During the duration of their claim, they would no longer be responsible for paying the premium on the policy.

It could prove to be a very costly mistake to forgo the security and protection provided by long-term care insurance out of fear that the premium might possibly increase in the future.Many people will be receiving benefits from their policies while others will be paying for the cost of care out of pocket simply because they were concerned about something that may have never occurred.

Long-Term Care Awareness Month sends this message:

Don't let another year pass without taking a hard look at how you will pay for your lown long-term care.

Simplify Your Long-Term Care Planning with a Long-Term Care Specialist

You Can Only Make Two Mistakes with Long-Term Care Planning

There can be many reasons preventing someone from putting long-term care insurance in their retirement portfolio...conflicting priorities (would rather have that special vacation than pay the premiums), recent negative press (the bad is always stressed in the media, not the good), failure to realize the value of owning long-term care insurance and in denial that "I will never need it."

There are really only two potential mistakes that can be made:

Buying a policy, but never needing care
or
Not buying a policy, but needing care.

Based on the averages, you may be paying premiums for 20-30 years. Your out of pocket expenses would be roughly $34K- $51K. After 20 years without the purchase of a Long-Term Care insurance policy, if you needed to be placed in an assisted living facility the cost for one year of care could be over $160K. It is important to keep in mind that the average stay is three years. This would bring the total cost to $480K.

So the bottom line is: Which mistake would you rather make?

You can either make the mistake of buying a policy and never need the benefits
Or
You can choose to not buy a policy and spend far more out of pocket in a fraction of the time.

Consumer Library Resources for Long-Term Care Planning

Will My Children Take Care of Me If I Need Long-Term Care?

Many people believe that their children or even close family members will take care of them if they need long-term care. This is usually thought of without considering all of the consequences involved.

After all, if you have children you may feel that "we took care of them, now it's their turn." You really need to ask yourself if you would want to be a burden to your children and due to poor or no planning, have your problems and misfortunes become their problems.

Many children may lovingly and naively say that they will always take care of their parents, but is it even fair to put someone who you love in such a difficult situation.

The parent and the adult child typically does not fully understand all of the issues involved and how uncomfortable certain personal situations can be for both of them.

The stresses and demands associated with care giving are enormous in even the best of circumstances.

Important questions to ask yourself are:

• Do your children have jobs that will allow for the necessary flexibility for care giving?
• Do your children have families of their own?
• Do your children live close by?
• Will you need to relocate?
  

Believing that your children will take care of you may initially seem like a reasonable idea. However, when the time comes to start rearranging everyone's lives and facing the reality of all the issues involved, many people end up having serious second thoughts.

Simplify Your Long-Term Care Planning with a Specialist!

Consumer Library Resources are available here.

Increased Tax Deduction Limits For Long-Term Care Insurance

The Internal Revenue Service (IRS) has announced increased deductibility levels for long-term care insurance policies purchased in 2010. "For the first time, the maximum deductible limit for an individual exceeds $4,000," explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance , the national trade organization.

"The federal government and an increasing number of states are sending a clear signal that individuals need to plan for long-term care and tax deductibility and tax credits certainly make long-term care insurance more attractive to millions," Slome adds. "It is a positive sign to see limits for long-term care insurance deductibility increase especially when pension contribution limits for 2010 were not increased."

The end of the year provides a double tax-saving incentive for consumers. There is still time to take advantage of tax deductions in 2009 and also benefit from the increased deductible limits next year.

The 2010 deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:

• Age 40 or less: $ 330
• More than 40 but not more than 50: $ 620
• More than 50 but not more than 60: $1,230
• More than 60 but not more than 70: $3,290
• More than 70: $4,110
  

A complete explanation of tax deductible rules for individuals and business owners can be found on the Association's website: Click here for 2010 tax deductible limits.

For More Information: Visit LongTermCareInsurancePros

Consider Long-Term Care Insurance Now

It's in the news almost daily...health care reform, how can the government save money to help pay for the uninsured. This plays a big part in what is going to happen to long-term care services.

Last week, the Centers for Medicare and Medicaid Services reduced Medicare funding for nursing homes by an estimated $16 billion over the next 10 years. Twenty-four states already have reduced Medicaid funding this year. And $313 billion of additional cuts have been proposed by the administration to fund health care reform.

What is this going to happen when all the "boomers" are in the system and require care? Long-term care is not necessarily about "nursing homes." It is the custodial help people need with the activities of daily living. This help can be provided in your own homes or in assisted living facilities.

The time is now to make plans to take care of yourself and/or parents and not wait for the government to step in to help.

Terry Savage a columnist for the Chicago Sun-Times recently summed up why everyone should Consider long-term care insurance now.

Learn more about What Long-Term Care is.

By planning early, you can enjoy "good health discounts" given by the insurance carriers. The younger you are the less you pay over the long haul.

For more information Visit: LongTermCareInsurancePros

Long-Term Care Insurance-Some Coverage is Better Than No Coverage

Long-Term care insurance is a product that many people don't understand or think they need. The statistics show that most people over 65 will indeed need some type of long-term care. It is the responsibility of the trained Long-Term Care Specialists to educate the public on what is long-term care and how long-term care insurance can be affordable.

Less than 10 percent of our population has made the decision to purchase Long-Term Care insurance. Why? What are the other 90 percent thinking? It is believed that one of the main objections is cost. Many consumers perceive this product to be too expensive. The word "perceive" is used because long term care insurance is not as expensive as people generally think.

Many studies have shown that, when asked, the average consumer guesses at a premium dramatically higher than the actual cost of an LTCI policy. Part of this comes from not being educated on the subject, but the other part comes from agents across the country, who insist on showing proposals for only the "Cadillac" of policies.

Some type of long-term care coverage is better than no coverage. It is true in the perfect world that a top notch, high priced plan would be great when long-term care is needed. But, an affordable plan with a $70 day benefit is greatly appreciated when the time comes to hire a caregiver for a couple of hours a day.

Find Affordable Long-Term Care insurance by getting educated and free multiple quotes.

Long-Term Care Hybrid Products May be Another Option for Buyers

Insurers are rolling out new products that combine long-term care insurance with either a life insurance policy or an annuity. These new products have been on the market for awhile, but they are gaining in popularity due to a law that goes into effect Jan. 1, 2010, making distributions from life insurance and annuities tax free when used to pay nursing home costs.

Even though long-term care costs continue to rise, some consumers may hesitate to purchase long-term care insurance. Many people do not want to pay premiums for something they might not need. A hybrid product has the benefit of combining two products into one. If you don't use the long-term care insurance, you can still benefit from the life insurance or the annuity.

The products vary in the details, but the general idea of a hybrid life insurance policy is to allow a buyer to purchase a cash-value life insurance policy and to use a portion of that policy for long-term care benefits, if necessary, and keep the rest as a death benefit that will be paid to the purchaser's beneficiary. If long-term care benefits are used, the death benefit may be reduced.

Hybrid annuity products also vary significantly, but in general they allow a buyer to purchase a fixed deferred annuity with a long-term-care rider attached. The annuity may pay out for a specific number of years or for life. For example, a purchaser could deposit $150,000 into an annuity. The annuity would provide approximately $4,700 a month of long-term care benefits for 36 months. For an additional cost, the purchaser could get the $4,700 monthly benefit for life.

While a two-for-one product may seem attractive, these products are not for everyone. For one thing, you may have less flexibility with a combined product than you would with a stand-alone product. Hybrid products may not cover home care or include inflation protection, for example.

In addition, hybrid products may not offer enough long-term care coverage for what you need. It is impossible to predict exact coverage needs, but click here for more information on how to figure out how much insurance to purchase. A hybrid product is likely less expensive than purchasing two separate products, but it is often more expensive than purchasing a stand-alone long-term care insurance policy.

As with any major purchase, you need to evaluate it carefully before purchasing. Before deciding what to buy, get advice from a Long-Term Care Specialist.

For more information on long-term care insurance, Visit: Long Term Care Insurance Pros

Long-Term Care Insurance and What Consumers are Paying

In gathering information from Partnership States, the American Association for Long-Term Care insurance shed some light on the subject of what people pay for long-term care insurance protection. It clearly shows that the majority of consumers are spending far less for long-term care insurance protection than what is reported in the consumer media.

The following data is based on over 70,000 individuals (under age 61) purchasing Partnership long-term care insurance policies between January 1, 2009 and June 30, 2009.
Premium Amount Percentage

• Less than $500 18.1%
• $500 - $999 33.2%
• $1,000 - $1,499 11.1%
• $1,500 - $1,999 10.2%
• $2,000 - $2,499 7.6%
• $2,500 - $2,999 6.0%
• $3,000 - $3,499 4.7%
• $3,500 - $3,999 3.3%
• $4,000 and Over 5.3%

Why are these numbers so important?

Because a number of organizations reported to the media that the average cost is much higher than what is documented here. It is important to get the facts when doing your Long-Term Care Planning.

Long Term Care Insurance Pros is working hard to properly educate consumers and other professionals on Long-Term Care Care Financing and Planning.

For more information: Visit Articles and Resources on Long-Term Care Planning

How to Evaluate Long-Term Care Insurance

Whether from the personal experience of a loved one or via the comparatively easier exposure of a friend's story about his parents, a prolonged health decline by someone you know is not an easy process to observe, let alone be touched by. While the non-financial implications are great, the monetary consequences of extensive medical care can be equally as meaningful. In recent years, the long term care insurance industry has grown significantly and now plays a major role in this life stage.

Unfortunately, like many relatively new products, the industry is still finding its footing and apples-to-apples comparisons of policies are still difficult. Furthermore, premiums can be extremely expensive, especially for those first looking to acquire a policy late in life. Nonetheless, long term care insurance is worthy of your time and consideration. Whether you opt to purchase the product or pass, it is critical to make a conscious decision to address the possible financial implications of long-term care.

Schedule a consultation with a Long-Term Care Specialist!

Long-Term Care Insurance and Elimination Period Options

Choosing the most appropriate elimination period of the long-term care insurance (LTCi) policy requires careful consideration. The elimination period refers to a specific period of time before the Long-Term Care insurance policy will begin to pay benefits or reimburse the cost for covered care to the insured that has become eligible to receive them. Meanwhile, you will be responsible for paying the full cost of your long-term care during the elimination period. This is also called the waiting or deductible period.

It is important to choose the elimination period that you are comfortable with throughout the life of the policy--which may cover several decades. A long-term care specialist can design a plan including which is the best elimination period depending on your own personal situation. If you have significant assets, you may opt for a longer elimination period. This will also lower your premiums.

During your long-term care consultation, your long-term care specialist will explain how different carriers count their elimination period days. Depending upon each carriers definition, some policy's elimination period may begin sooner than others.


No matter what the elimination period is, the premium that you will be paying must be affordably comfortable. A long-term care specialist will be able to help design the best plan while still keeping it affordable. Having some insurance is better than not having any coverage.

The bottom line is...when the time comes to collect on your long-term care insurance policy, any amount will be greatly appreciated.

For More information: http://www.LongTermCareInsurancePros.com

Women Benefit More from Long-Term Care according to AALTCI

The American Association for Long Term Care Insurance (AALTCI) has released a new consumer guide for insurance and financial professionals that specifically addresses issues and options facing women.

Findings from the "Woman's Guide to Long Term Care Insurance Protection," indicate that women who are older than 65 comprise 980,000 nursing home residents in the U.S. This is compared to only 337,000 men in that age group.

According to the Association’s Executive Director Jesse Slome, women benefit more from owning long term care insurance, as two-thirds of all insurance benefits are paid to women, 41 percent to single women and 25 percent to married women.

In terms of single men, this demographic accounts for just 12 percent of claim benefits, 22 percent for married men. “Each have very specific planning needs and issues," Slome explains. "Married women face a likelihood of providing care for their spouse, who typically is older, or facing a very significant annual bill for care."

Having a long-term care plan in place before an event occurs helps preventing one spouse from becoming the primary caregiver. Caregiving on a full time basis takes its toll on the family and caregiving often times reducing the health of the caregiver.

Simplify Your Long-Term Care Planning with a Long-Term Care Specialist!

Long-Term Care and Some Aging Myths

I came across some interesting myths on aging. No one likes to think about getting old and not being able to do everything we did when we were younger. The truth of the matter is we can age gracefully when we maintain good health and exercise habits and acknowledge that we may not be able to do at 50 what we did in our 20's. With this said we can still enjoy life at all ages.

Aging Myths:

• 70% older adults feel they are in good health.
• Americans who live to be 65 can expect to live on the average of 18 more years.
• Older women are less likely to be married than older men.
• There are 32 males per 100 females for seniors over the age of 90.
• A person who has a warm, sociable and outgoing personality at 20 is likely to be the same at 80.
• The median personal income for persons 65+ in 2003 was $14,495.
• The 65 - 74 age group has a higher net worth than both 55 - 64 and 75+ age groups.
• In 2000, 70% of Americans age 65+ had completed high school.

The Buzz About Long-Term Care

Senator Herb Kohl (D-Wis) is the chairman of the Aging Committee. As the chairman of the Aging Committee, he has gained a familiarity with many of the pressing health care issues that affect seniors and all Americans. He has been pushing for health reform to include improvement to our long-term care system.

Our nation’s population is aging at an unprecedented rate, and with every passing year, more elderly Americans find themselves in need of long-term care.

Senator Kohl feels that we must protect those consumers who are making an effort in advance to plan for the costs of their own long-term care. Partnership programs have been initiated in many states encouraging residents to purchase Long-Term Care insurance in an attempt to lessen the burden of Medicaid (MediCal) costs on state budgets.

Sen. Edward Kennedy’s (D-Mass.) Community Living Assistance Services and Supports Act (CLASS) supports a $50/day benefit for long-term care after being vested in the system for 5 years. $50/day is a start but, hardly enough to cover the costs. Senator Kennedy envisions a whole new market of supplemental LTCi policies that consumers would be urged to buy in order to complement the bill’s coverage.

Planning ahead while younger and healthier is key to keeping your premiums reasonable. I advise clients to get something in place that is affordable while the discounts are still available.

As time goes I will keep you posted on the options the government is considering with the growing long-term care issue.

In the meantime, if you are between the ages of 45-75, it is wise to not wait for the government, but learn what your options are and get a long-term care plan in place.

By putting a plan together you will know where the money will come from when long-term care is needed.

Long Term Care Insurance Partnership Programs

States which offer Long-Term Care Partnership policies have a public/private arrangement between long-term care insurers.

The California Partnership for Long-Term Care is an innovative program of the State of California, Department of Health Care Services in cooperation with a select number of private insurance companies. These companies have agreed to offer high quality policies that must meet stringent requirements set by the Partnership and the State of California.

These special policies are commonly called "Partnership policies". Partnership policies take the guesswork out of ensuring you purchased a quality policy. In addition to many other consumer protection features, Partnership policies offer the special benefit of Medi-Cal Asset Protection.

The "Partnership" plans help state residents plan for future long-term care needs without depleting all of their assets to pay for care. They are designed to encourage and reward state residents for planning ahead for future long-term care needs.

Only a Partnership approved policy can help pay for the care you may need and provide you with lifetime asset protection, so that even if you use all your policy benefits and need to apply for Medi-Cal or MediCaid benefits, you will not be forced to spend everything you have worked for on long-term care.

If you don't have long-term care insurance for yourself, your spouse or your loved ones, I urge you to meet with a long-term care specialist who can more completely describe the Partnership-approved policies and discuss which policy could best meet your needs.

Obama Backs Efforts for Long-Term Care Insurance

President Barack Obama is backing efforts to create a new government program to provide long term care insurance as part of the broader health care overhaul.

The voluntary insurance program — sponsored by Massachusetts Democratic Sen. Edward M. Kennedy — would pay a modest daily cash benefit of at least $50 that people could use for in-home services or nursing home bills.


Health and Human Services Secretary Kathleen Sebelius said in a letter to Kennedy that the administration supports the program because it would help elderly and disabled people stay in their own homes. But the Congressional Budget Office is questioning the program's long-range solvency.

In a letter to Kennedy released Tuesday, Health and Human Services Secretary Kathleen Sebelius said that Obama believes the long-term care program is an "innovative" idea that should be "part of health reform."

"Enactment of this important legislation would expand resources available to individuals and families to purchase long-term services and supports to enable them to remain in their own homes in the community," Sebelius wrote.

Senator Kennedy's idea, known as the Community Living Assistance Services and Supports Act or CLASS Act for short envisions workers and their spouses enroll in the long-term care insurance program for a monthly premium of $65. People would have to pay premiums (become vested) for at least five years before they could claim benefits and they would have had to be working at least three of those years.

Beneficiaries would qualify for assistance if become disabled and unable to perform at least two or three basic activities such as bathing or dressing.

Because of the five-year vesting period for benefits, congressional budget analysts estimate the program would run a fat surplus in its first 10 years. Soon after that, it would get swamped by claims.

To keep the program financially solvent through 2050, the government would have to raise premiums significantly, to $85 a month, and keep benefits at the $50 daily minimum, the budget office said. And even with those measures, the program might still increase the deficit.

It is important that long-term care is being addressed, but how realistic is the government when in 2009 they are putting on the table a $50/day benefit to help cover expenses in the home. At 2009 rates, the average caregiver has an hourly rate of $18-20/hour. Fast forward 10 years and this $50/day benefit will not provide you with 2 hours of care.

Is this really solving your Long-Term Care problem? Is it good planning to wait to see what the government will sign into law?



Consult a Long-Term Care Specialist to see what your options are TODAY!

Long-Term Care Planning Helps Manage Retirement

Retirement today can last for many more years than it did in the past. In the old days, retirement lasted 7-10 years, so the cost of health insurance was more manageable. Retirement can last decades especially with the help of medical science and the new prescription drugs which keep us alive longer. But, living longer comes with a price.

Health care can cost a retiree about $250,000 during their retirement years. This is for the medical expenses such as office visits, prescriptions and surgery. This does not take into account the need for long-term care.

Even though Congress is discussing a limited national long-term care program, it does not come close to offering comprehensive care over a number of years, in the setting of your choice.

There is an underlying message:

• You will live a long time.
• You will probably need care before you pass away.
• This need for care may last several years.

It is important to plan now for where you want to receive that care and who will pay the bill. The problem with planning when you are young and healthy is that "It just doesn't feel urgent." It is sensible to put a plan in place when you are not in crisis mode so that you can make good and sound choices.

The cost of long-term care insurance varies significantly from one insurer to another. That is why you want to talk to a knowledgeable long-term care specialist with access to more than one company.
Find out more about Long-Term Care at LongTermCareInsurancePros

Confidence in Long-Term Care Insurance Act of 2009

Chairman Herb Kohl (D-WI) has introduced a bill S.1177, the Confidence in Long-term Care Insurance Act, which will include curbs on premium spikes, ensure that agents receive training and make it easier for consumers to compare policies.

This bill aims to improve consumer protections for purchasers of long term care insurance and suggests that there is a profound recognition by the federal government of the important role of private long-term care insurance.

The State Partnerships for Long-Term Care Program, a program which allows individuals to purchase a long-term care insurance policy and qualify for Medicaid benefits without depleting all of their assets. This program is a win-win as consumers are afforded a first layer of protection through their private long-term care insurance policy, enjoy the flexibility and choice it offers, backed by the state Medicaid (MediCal, in California) program should they exhaust the benefits of their private long-term care insurance policy and otherwise qualify for Medicaid benefits.

This new legislation will provide a uniform way of handling claims, transferring policies between states and increasing premiums. Long-term care insurance should reflect standards set by the National Association of Insurance Commissioners.

A long-term care specialist has the additional education and training (LTCP, CLTC) necessary to assist you in your long-term care financing, planning and insurance.

What is Long-Term Care?

Life comes in Phases...It is Never Too Early for Long-Term Care Planning

We can look at our lives in Phases.

• 
  Phase 1- This is the phase where you are working and accumulating wealth with your paychecks. You are making choices about what you do with your money.
• Phase 2- With the money you earned or are earning, you either have or are building assets.
• Phase 3- The choices you made or are making throughout your life determine the enduring phase of your life- how will you live out your life, can you continue to enjoy your lifestyle, and what legacy will you be leaving.

Long-Term care planning and insurance can help protect you in each phase of your life. It will provide you with the comfort of knowing that your assets-and those of your loved ones- are protected from unforeseen events.
Planning in the early Phases of your life while you are younger, healthier and more likely to be insurable will save you substantially on your premium payments. Why? When it comes to buying long-term care insurance, good health is a real advantage.

I look forward to helping you with your Long-Term Care Planning. Call me at 949-854-3001 or email me at dane@LongTermCareInsurancePros.com

Long-Term Care Insurance and The Procrastination Game

Why is procrastination so closely associated with long-term care planning and insurance?

Nobody ever wants to imagine themselves in a situation where they are going to need help with the activities of daily living.

The activities of daily living are really the activities we do every day and take for granted. They are simple tasks like eating, dressing and getting in and out of a chair. No one wants to picture themselves in that situation. So, what does one do….Procrastinate.

There is way of reducing the anxiety that is produced when approaching the subject of Long-Term Care planning and insurance. It is important to consult and get the information from a Long-Term care specialist with designations in long term care financing and planning (LTCP and CLTC).

The information will be presented to you in a manner that you will be able to understand and ask questions as it pertains to you and your family. Long-term care insurance is not a “one size fits all” product. It is important for you and the long-term care specialist to communicate what is important to you when designing a plan. The long-term care specialist will also be honest and forthright and telling you if this type of coverage makes sense for your individual financial situation.

Procrastination can be the most costly enemy when it comes to purchasing long-term care insurance. As you age, the premiums go up and as you age your health begins to decline. So, the bottom line procrastination can increase your premiums or you may not qualify for the coverage due to your health.

For more information and a free, no obligation quote comparing all the top carriers call 877-GO-4-LTCi. or visit LongTermCareInsurancePros

Long-Term Care Insurance-Should I Self-Insure?

A common question I get in the long term care insurance world is: "Should I just self insure?"

The answer is simple, just look at the wealthiest people in the world and you will find they are insured to the max most of the time. The reason being it's better to spend pennies to protect dollars.

According to the U.S. Department of Health and Human Services, at least 70% of people over age 65 will need some long-term care services at some point in their lives. This underscores how financially vulnerable people will be without a carefully considered Long-Term care plan.

Long term care insurance is a smart idea simply because people are living longer these days and the potential risk is $100K/yr in many areas of the country.

Preparing for the potential need for LTC clearly makes sense, especially if it can help protect existing assets at the same time. Even if a particular individual could afford to self-fund a private room in a nursing home at $74,825 per year, the question remains–does that really make the most sense? Or is it more sensible to leverage those assets so the individual can enjoy them by passing them on to beneficiaries or to a favorite charity?

We work with all the top carriers so visit us today for your free long term care insurance quotes. http://www.longtermcareinsurancepros.com/

A Gift for Mother & Father-Long-Term Care Insurance

A great gift for Mother (and Father) is Long-Term Care insurance. However, you may want to wait and give it to them during the year, but not directly on Mother's or Father's Day.

On Mother's Day and Father's Day , give your parents what they want.

• A family get-together
• A nice dinner out or a family Bar B Q
• Quality time spent with children and grandchildren
• Hugs and Kisses

Then, during the year it is time to broach the subject of long-term care financing and planning. You should do this because you love your parents and want them to be able to have the best care available to them when they will need it. It isn't selfish to suggest that the subject of long-term care be brought up. It is best to discuss this early before a long-term care event occurs and puts the family in crisis mode.

Siblings should come together with a good long-term care plan for their parents. As a loving gift to your parents, you may want to pay for the premiums for long-term care insurance or pay a portion of the premiums.

Long-term care insurance is a gift of love. It is really a gift that shows you care.

• It eases the burden from your parents.
• Having long-term care insurance means that your parents will have the choice of home health care, assisted living or privately funded nursing homes.
• They will have choices.
• It will provide the family with "peace of mind."

Free, No Obligation Family Consultation is the best way to start your Long-Term Care Plan

More Articles and Resources on Long-term care planning

Long-Term Care Affordability and Security Act of 2009

The American Council of Life Insurers (ACLI) applauds the Senators (bi-partisan, I may say) for introducing legislation that will help Americans prepare for their long-term care needs.

The "Long-Term Care Affordability and Security Act" (S.702) would permit long-term care insurance to be included in employer-sponsored cafeteria plans and flexible spending accounts (FSA), enabling people to pay long-term care insurance premiums using pre-tax dollars. Current law excludes long-term care insurance from being included in cafeteria and FSA plans.

Many retirees would have to deplete their hard-earned savings to pay for these services. Long-term care insurance can help cover the costs of long-term care services and protect Americans’ savings.” says CEO Frank Keating of The American Council of Life Insurers (ACLI). He is urging Congress to pass this important legislation.

The government sees a problem of where the money will come from to pay for the 77 million baby-boomers. Long-term care planning needs to be addressed at a time that one is healthy enough to qualify for coverage.

If you are in your 50's, 60's or older, this legislation may be too late to help you, but your children and grandchildren may benefit.

It is important to remember that:

• Your Good Health may qualify you for a good health discount
• The Younger you are the lower the premium
• Long-Term Care insurance must be comfortably affordable

Long-Term Care Articles and Resources

What is Long-Term Care?

So often, I have clients who do not completely understand what Long-Term care is. Many think that it is having been hospitalized. In some cases, long-term care can occur after a hospital stay if the patient health is not improving.

When you think of a hospital stay, you may have an operation or an ailment such as pneumonia. These conditions may vary well improve and you can go on taking care of yourself. Long-Term care comes in when you have a situation where you need help with the activities of daily living.

These activities are eating, bathing, dressing, transferring, incontinence and walking. Long-Term care is needed when you have a chronic illness or disability that causes you to need assistance with Activities of Daily Living. Your illness or disability could include a problem with memory loss, confusion, or disorientation. (This is called Cognitive Impairment and can result from conditions such as Alzheimer's disease.)

In 2008, about nine million Americans over the age of 65 will need long-term care services. By 2020, that number will increase to twelve million. Most people who need long-term care are age 65 or older, a person can need long-term care services at any age. Forty (40) percent of people currently receiving long-term care are adults 18 to 64 years old.

No one knows when they will require assistance, but the chances of needing care increase as we age. Medical science, new prescription drugs help us live longer today.

You are younger and healthier today than you will ever be. This is the right time to look more closely at a good long-term care plan. Speak with a Long-Term Care insurance specialist today!

Long-Term Care Insurance Carriers Change with the Times

I just returned from an independent Long-Term Care producers conference held in Barcelona, Spain. A number of the top carriers were in attendance. Of course, the different companies all want you to sell their product.

In listening to the companies spokesman, the same point seems to be made across the board. The companies are coming up with new plans that fit today's consumers in regards to lifestyle and health qualifications. In some cases, the carriers have actually loosened up their underwriting guidelines to make long-term care insurance available to more people.

Among the fastest growing products are the Life + Long-Term Care combination Products.

There is more talk about long-term care planning than ever before because there is a greater need for long-term care. We are all living longer thanks to the advances of medical science. Baby boomers will start turning 65 in 2011. Between 2000 and 2040 the number of older adults with disabilities will more than double.

An independent Long-Term Care Specialist is able to help you determine what the best long-term plan is best for you and your family. He has access to many different carriers and the products they have whether it be long-term care insurance or a hybrid product with a long-term care rider.

For more online articles and resources, visit LongTermCareInsurancePros

The Caregiving Years

The Caregiving Years

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Long-Term Care Insurance Feels Better Than Ever

It doesn't occur to me to read my Long-Term Care insurance policy just for fun, but with these tough economic times, I have found comfort in knowing that it is there and the benefits are growing.

Most feel that long-term care planning is an unpleasant topic. The thought of being old and chronically ill is a subject that is easily set aside. The truth of the matter is it is best to put a plan in place before a life crisis occurs. Why? While you are younger and healthier, the chances of getting long-term care insurance is greater. You many even benefit from the discounts available for preferred health.

Many are now part of the "sandwich generation" in between caring for aging parents and still actively involved with your own children. These realities help contribute to my appreciation of long-term care insurance policies. In addition, my grown children have a great appreciation of our long-term care insurance policies.

The uncertainty in the economy and the financial markets also make reading your long term care insurance policy a bit more enjoyable. Your lifetime maximum is one clearly defined number, no decimal points, share prices or "depending on market performance" caveats in the summary of coverage. It also feels nice to read the words "Inflation protection."

The best advice is to schedule an appointment with a Long-Term Care Insurance Specialist. You will receive a free, no obligation "side by side" quote from the top carriers in the industry.

Long-Term Care Insurance is Different than Investments

You would have to be living in a cave not to know that a number of financial institutions that were the giants of the industry are in the state of collapse. As a result, many are questioning whether long-term care insurance is worth the paper on which it is printed. It is understandable that one look at this financial mess with a jaded eye.

Let me explain that even though investments and long-term care insurance may both be part of a financial plan, they offer different benefits and risks.
Stocks and bonds are issued by a corporation and their value depends on the financial health of the company.

A long-term care insurance policy is absolutely a different animal. Insurance is regulated by each state and the regulators require that insurance companies put aside money (called "reserves") to help make sure that future claims can be paid. In addition, regulators restrict how these reserves can be invested,

It is important that policyholders understand that their insurance contract is backed by more than just the promise and goodwill of an insurer. There is actually money put aside to make sure claims can be paid.

As in the case of AIG, the policyholders are safe. Even in the worst case scenario where an insurer becomes insolvent or is unable to pay its claims, here comes the state's guaranty fund. Insurance contracts are regulated by the Division of Insurance (DOI) in the state where the contract was originated.

Insurance offers guarantees backed up by reserve funds and guaranty funds. You do not get this with your financial investments.

In a world of increasing uncertainly in so many areas, it's a another reason to make sure a long-term care insurance policy is part of your financial plan.

I can answer any questions or discuss your particular situation. You can contact me at 949-854-3001 or email dane@LongTermCareInsurancePros.com

Long-Term Care Insurance Makes Sense in a Tough Economy

It's a tough economic world out there, but it is possible to avoid financial ruin by staying on the right path. It is important to plan for what can be the largest financial risk one could face in the future.
Long-term care could be devastating to anyone's retirement plans. It is also an area that is usually not in the fore front of the financial plan.

I cannot emphasize enough how important it is to plan ahead for any health-related costs thay may crop up, including those for any aging parents you may be taking care of in the near future.

A nursing home can easily cost $75,000 or more a year and Medicare does not cover long-term care. A caregiver providing home health care costs between $15-$20 an hour depending on the training and location of the caregiver.

Long-Term care insurance is probably one of the best expenditures you can make if you are trying to reduce the rishe of running out of money in retirement. With the costs of health care rising, you can run out of a huge chunk very quickly.

Long-Term care insurance helps to manage this potentially huge risk and transfer the risk to an insurance company.

A professional independent long-term care specialist can help determine if this type of insurance makes sense for you and your particular situation. The insurance isn't for everyone and everyone doesn't always qualify for it.

If you are thinking about it, do not hesitate. Get educated and then make an informed decision. You will be happy one way or another after you have addressed what most people find depressing. That is DENIAL!
Let's face it, we are all healthier today than we will be tomorrow and if you plan on living a long life, then some type of long-term care is in your future.
For more articles and resources, visit LongTermCareInsurancePros

Long-Term Care Insurance and How Underwriting is Important to the Application Process

Underwriting as it relates to insurance is evaluating the risk and exposures of potential clients. The underwriters decide how much coverage the client should receive, how much they should pay for it, or whether even to accept the risk and insure them. Essentially, underwriting is the acceptance of risk in return for payment. This is the reason that your good health buys your policy. Without reasonably good health, purchasing a long-term care policy is not possible.

The function of the underwriter is to acquire—or to "write"—business that will make the insurance company money, and to protect the company's book of business from risks that they feel will make a loss. In simple terms, it is the process of issuing the long-term care insurance policies.

Each insurance company has its own set of underwriting guidelines to help the underwriter determine whether or not the company should accept the risk. The information used to evaluate the risk of an applicant for insurance will depend on the type of coverage involved.

The following are the underwriting procedures used by the company.

The first step in underwriting after the application is received is where the applicant lists his or her relevant personal health history and authorizes the insurance company to examine their medical records.

Next, the carrier will schedule a phone health interview that lasts for about 15-20 minutes. This is to assure the carrier that the applicant does not have any cognitive problems.

The carrier will often request a copy of the medical records from the applicant’s primary care physician to verify the person’s overall health. The records from a specialist may also be requested as well.

The biggest delay in this underwriting process is in the request for medical records. Sometimes the doctor’s office does not process the record quickly. Once the carrier receives the medical records, a final underwriting decision usually follows very quickly.

A long-term care specialist can match you up with the carrier and a plan that best fits your health and budget.In conclusion, health determines the way underwriters look at each potential client. Having one particular ailment may not be an issue with one carrier but may be with another carrier. Additionally, if a client has more than one illness, the combination may cause them to either be uninsurable or have the premium increased or rated up.

When learning about long-term care insurance, it is important to consult with a long-term care specialist. Usually, a long-term care insurance specialist has additional education and training (LTCP, CLTC) in long-term care financing and planning. An independent specialist can match the carrier to your own particular needs and budget without being bias toward anyone company.
For a great online source for articles and resources on long-term care financing and planning, visit LongTermCareInsurancePros

Long-Term Care Insurance-Your Quick Guide

Here is a quick guide to Long Term Care Insurance:

It's what you must know about LTC to move you off the fence and into learning about what it is and what it can do for you and your family.
I know that most do not find the subject of insurance that interesting and nobody likes to think about Long-Term Care. But, here are some quick facts.

• Long-Term Care can happen to you. I am sure you hear about it every day. As we get older, all of us may need help and a stroke, Alzheimer's or even a bad fall can leave you debilitated and unable to care for yourself.

• If you need long-term care, you will probably have to pay for it out of own savings. If you are legally impoverished, government programs like Medicaid may cover your nursing home care.

• The bill for Long-Term Care is not cheap. According the Met Life Cost of Care Survey in 2007, the national average daily rate for a private room in a nursing home is $213 or $77,745 annually. The rate for a caregiver is around $18-$20 hour which adds up to thousands of dollars a month.

• Long-Term care insurance can be an affordable alternate to using your savings to pay for care. However, it's not right for everyone. People that already have severe health conditions may not qualify for coverage and if you are retired, with less than $70,000 in savings, purchasing insurance is probably inappropriate.

With all this being addressed, your Long-Term Care planning will be simplified with a Long-Term Care Specialist. He will help choose the carrier that will get you the best rate in designing a Long-Term Care plan that fits your needs.

Do you have a plan?

Give me a call or send an email to dane@LongTermCareInsurancePros.com to get started.

Got more Questions?

A Simple Case for Long-Term Care Insurance

A recent article in the New York Times makes a great case for purchasing Long-Term care insurance.

The article describes in great detail the situations where men "default" into becoming primary caregivers, largely because no prior thought or conversation was given to long-term care financing and planning.

Here’s how the article starts:

“ When Peter Nicholson’s mother suffered a series of strokes last winter, he did something women have done for generations: he quit his job and moved into her West Hollywood home to care for her full time.

Since then, he has lost 45 pounds and developed anemia, in part because of the stress, and he is running out of money. But the hardest adjustment, Mr. Nicholson said, has been the emotional toll.

“The single toughest moment was when she said to me, ‘And now who are you?’ ” he said. “My whole world just dropped. That was the pinnacle of despair.””

An important question is: If Mr. Nicholson’s mother had purchased affordable long-term care insurance while she was able, how differently would this situation have turned out?

Learn about your options when doing your Long-Term Care Planning with a free consultation.

Long-Term Care Insurance helps Plan for A Secure Financial Future

I must share with you some of the flippant comments I have received from friends as well as potential clients when asked what their plans were for providing for long-term care.

"I'll just overdose"
"I'll shoot myself"
"When I will need long-term care, it won't matter, because I won't have a clue"
"I took care of my kids, they can take care of me"

Over the years, many people have given me these types of answers. I have to wonder, what are they thinking or the truth is they really don't want to think about it. Therefore, they think its funny just to be flippant about such an important part of life where you may need help with your daily activities.

Sometimes we have to face up to tasks that may not be pleasant such as:

• Your Wills (who will get what and will I insult someone)
• Your Trusts Your Health Care directives
• Your Long-Term Care Plan

It is true, that you become uncomfortable thinking and planning for that day that you may not be the same as you are today. So, while you are healthier today than you will ever be, it is time to plan.

To simplify your Long-Term Care Planning, consult with a Long Term Care Specialist. It will give you insights that will make the process more palatable. It will also let you know if Long-Term Care insurance makes sense and is affordable.

A good long-term care plan is beneficial to you and to your family.

Find out more about Long-Term care.

Long-Term Care Insurance Top Questions for 2009

As we welcome a new year filled with hope and promise, I thought it would useful to address the most Frequently Asked Questions concerning Long-Term Care Financing and Planning.

In addressing these questions, you will improve your knowledge of what Long-Term care is and what you can do to provide the best solution for you and your family.

The Top Questions:

1. What is Long-Term Care?
2. When is the right time to buy Long-Term Care Insurance?
3. What should the Policy cover?
4. How do you make sure the insurer will be around when you need the coverage?
5. Won’t Medicare pay for Long-Term care?
6. What are the Partnership plans?
7. Can’t I just invest the money?

These questions and more can be answered specifically for you, your spouse or partner and any other family members involved with a FREE consultation with a Long-Term Care Specialist

Any Other Questions?