Long Term Care Insurance Worries Baby Boomers

Change is happening in the long-term care insurance industry and it's not all bad, but different.

Millions of baby boomers are afraid that they will not be able to afford long-term care insurance and at the same kind afraid that they can't afford not to have this type of coverage.

A rapidly aging population, lengthening longevity and unpredictable health care costs are some of the factors that highlights the need for long-term care insurance.

Insurance companies are looking to raise their rates and some are leaving the long-term care industry (Met Life). Met Life will continue to provide coverage for its existing policyholders.

The insurance companies are struggling with record low interest rates, which have dragged down investment returns. In addition, the insurance companies are seeing an increased utilization of the the policies.

The need for this type of coverage is there, the insurance carriers are going through "growing pains" where they are offering a product that will be utilized by over 50% of the people purchasing this type of coverage.

There are ways to to keep premiums affordable. It is important to consult with an insurance broker or agent that specializes in long-term care insurance. He can help you design a policy that will fit your income and needs.

There is No Place like Home for Long-Term Care

There's No Place Like Home

Home is where the heart is, so it's no surprise people want to stay in their homes for as long as possible, especially when they are older.

Here are some tips to help you or a loved one stay in your home longer:

November is Long-Term Care Awareness Month
This is a great time to learn about your options if you get sick or injured and how you can help protect your family and finances.

Stay Healthy:
Leading a healthy lifestyle helps lower your chance of injury or illness and helps you recover faster. So, eat well and exercise to keep bones and muscles healthy. Also, see your doctor for regular checkups and preventive care.

Modify Your Home:
Making a few adjustments to your home can make it easier and safer to move around. These can help lower your chance of needing care or be useful if you need a little extra help getting around.

• Build ramps or chair lifts to help you get up and down stairs.
• Add grab bars or non-slip surfaces to make rooms less accident-prone.
• Reorganize furniture and update flooring (like tile, rugs or linoleum) to ensure you have enough room to maneuver and avoid tripping.

Plan for Emergencies:

• You may need to notify emergency personnel if you need help. Get a personal alert system and have a telephone in every room. Also, keep a list of medications and health problems on your refrigerator so people coming into your home can find the information easily.

Get Help:

• Your family will probably pitch in to help, but they may not be able to do everything. Consider having a caregiver heap with your everyday activities or ask your neighbor to run a few errands for you. Also, have someone check in on you regularly and hire housecleaners or order meals on wheels.

Other Things to Keep in Mind:

• Before you get sick or injured, consider your options to help cover the costs of your care. Also, if staying at home isn't an option, do research to see what types of service are available in your area, such as an assisted living facility or a nursing home.

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

Age with Agility-Keep Your Mental Processes Going Strong

Michael Merzenich, PhD, professor emeritus at the University of California, San Francisco and a pioneer of the concept of neuroplasticity says “We now understand that the brain is continuously rewiring itself based on our experiences.”

Not only can you form new wiring among existing brain cells, you also can grow new ones, says neurologist David Permutter, MD, author of The Better Brain Book. We were always told you were given a finite number of brain cells and that it was downhill slide as you aged. But, in fact, the human brain retains the ability to grow new brain cells throughout your lifetime.

Here are some expert tips shown in the latest research to boost brainpower:

Break a Sweat- Aerobic workouts stimulate production of brain-derived neurotrophic factor (BDNF), a protein that helps neurons function better and fuels brain-cell growth.

Color your Plate- Antioxidants in colorful vegetables and dark-skinned fruits can fend off free radical damage in the brain and turn on genes that protect against inflammation, which has been show to increase dementia risk.

Befriend DHA- DHA is an omega-3 fatty acid abundant in oily fish and algae.

Clear Your Brain-Stress boosts production of cortisol, a hormone that is particularly detrimental to cognitive function. One proven way to lower cortisol and boost brain cells is to meditate.

Prioritize Sleep-Lack of sleep also can lead to a surge of cortisol and it inhibits the production of BDNF.

Long-Term Care Insurance: It’s Not Just for Older People

Long-Term Care insurance is not just for older people. It is not what was thought of in the past as "nursing home" insurance.
Younger people are buying it, too for a variety of reasons. According to the American Association for Long-Term Care Insurance (AALTCI) more than half of the people who purchase a policy are between the ages of 55 and 64. There is a growing market of even younger buyers. Twenty-six percent of policies are sold to people age 45-54.Younger people are prompted to buy long-term care insurance even though they know they may not use it for 20-30 years. Why?

Personal Experience- Many of the younger people are member of the “Sandwich Generation”-people struggling to care for aging parents or family members while still raising their own families. Being caught in the middle gives them firsthand knowledge and experience of just how difficult being a caregiver can be. With this understanding, they don’t want that for their own kids.

Cost of Premium- The premium for LTCi is based on the applicant’s age. That means younger buyers pay less. And even though they may pay for a longer period of time, it’s generally less expensive than waiting to buy. In addition, no one know when the need for long-term care services will arise. The younger age usually is accompanied by a preferred health rating which comes with a discount. So buying young means that they will have coverage in place no matter when it’s needed.

Future Insurability-Younger buyers know that if their health were to change tomorrow, they may not be able to purchase LTCi at any price. Buying it while they are young and in good health not only eliminates the concern about future insurability, it also may cost less since young people have a better chance of qualifying for good-health discounts.

Pragmatism- The truth is an accident or prolonged illness can happen to anyone at any age. Today’s advances in medicine are saving the lives of people with catastrophic conditions like head injuries, heart attacks and strokes. However, these people still may need months or years of care. And the best way to help pay the bills for Long-Term Care services is with a Long-Term Care policy.

Consulting with a Long-Term Care Specialist simplifies your Long-Term Care Planning. Long Term Care Insurance Pros is an independent broker and works with the top carriers in the industry. These top carriers will give you the confidence that the companies will be there when you make a claim many years after the purchase of your policy.

For a free, no obligation consultation, contact dane@LongTermCareInsurancePros.com or call 949-854-3001.

Can You Afford NOT to Have Long-Term Care Insurance?

Do you have the perception that long-term care insurance is too expensive? Many financial experts say that long-term care insurance is important for protecting retirement savings. And the cost of not having coverage can be devastating.

Most people do not know realistically know what the cost is for long-term care services, which includes home health care, custodial services and nursing home care.

A lot of people think they can just pay for long-term care services if or when they need it, but it doesn't take long for the cost of care to exceed the cost of insurance. The cost of just two or three years in a nursing home can wipe out the average American's retirement savings.

Some insurance companies offer policies that provide greater flexibility as to how benefits can be used. For example, according to LongTermCareInsurancePros.com, policies that offer cash benefits instead of traditional reimbursement can cover the indirect expenses associated with long-term care, such as travel expenses, lost income for a family member serving as a caregiver, housekeeping services or other out-of-pocket costs. As soon as you trigger benefits, you receive a cash payment.

Some carriers offer a combination of cash and reimbursement in terms of paying claims.

For more information on designing a long-term care policy, Visit: LongTermCareInsurancePros

Health Care Reform is in News, But Not Understood

There has been widespread coverage of health care reform, but consumers still admit that they know very little about the health care system in the United States. This is according to the 3rd Annual Deloitte Center for Health solutions Survey of Health Care Consumers.

Here are some of the findings:

• 23% said they understand how the health care system works
• 76% grade the system a "C" or below
• 48% believe that 50% or more of health care dollars are wasted
• 57% said they are satisfied with their health plan
• 46% said they understand their health insurance coverage
• 25% do not know how much they are paying for health insurance

Even though consumers tended to rate the "system" low, when it came to their own personal experience they are much more likely to say they are satisfied, even if they do not know how much they are paying.

The survey also identified a number of contradictions when it comes to consumer perception, attitude, and behavior about health care decisions and personal health status.

People perceive themselves to be healthy, yet suffer from chronic conditions. 7 out of 8 (88%) consumers surveyed believe they are in "excellent," "very good," or "good" health, yet more than half (54%) have been diagnosed with one or more chronic conditions, and of the 56% who take prescription medications, almost half (47%) take three or more daily. Only 1 in 5 surveyed said they participate in a wellness program.

They have mixed emotions on the government's role in health care. 42% support government-mandated health insurance, 38% oppose it. 33% believe that the marketplace needs 10 or more insurance companies competing in order to ensure consumer choice.

The are financially confident, yet forego care because of cost. They are interested health records, but are slow to use them. Three in four consumers are confident that the medications they take are effective.

People are slow in making changes to their health coverage. It often takes a major event to even make people begin to think about the kind of coverage they have or should have. At this point, it may be impossible to get the coverage you want due to chronic illness or the type of medications you are taking. It is important to be proactive in regards to your health.

This is only the beginning of what is to come with Health Care Reform.

Trying to Understand Health Care Reform

I spent a couple of hours last week attending an informational seminar on Health Care reform, the Patient Protection and Affordable Care Act.

We were provided a timelime of the implementation dates for key provisions. The timeline begins in 2010 through 2018. The number of pages of this bill is over 2000 pages, which we were told is really just an outline. When finished, it could be well over 200,000 pages.

Some of the changes taking place in 2010 are:

• Provide dependent coverage for adult children up to age 26 for all individual and group policies.
• Prohibit individual and group health plans from placing lifetime limits on the dollar value of coverage and prior to 2014, plans may only impose annual limits on coverages determined by the Secretary.
• Prohibit insurers from rescinding coverage except in cases of fraud and prohibit pre-existing condition exclusions for children
• Establish a process for reviewing increases in health plan premiums and require plans to justify increases.*
• Provide a $250 rebate to Medicare beneficiaries who reach the Part D coverage gap in 2010 and gradually eliminate the Medicare Part D coverage gap by 2020.
• Authorize the Food and Drug Administration to approve generic versions of biologic drugs and grant biologic manufacturers 12 years of exclusive use before generics can be developed.

*Anthem Blue Cross who was in the crosshairs of the huge rate increases actually was approved by the California Department of Insurance. Why?

The system is broken and with all the new laws, cost containment doesn't seem to be addressed in this legislation.

I am not sure how any or all of this affect you and your families. I feel better keeping you posted and venting a little.

You can reach me at 949-854-3001 or dane@LongTermCareInsurancePros.com

You can find valuable Articles and Resources on Long-Term Care Planning

Long-Term Care Is In The News-What is Your Plan?

With health care reform passed, everyone is hearing more and more about the CLASS Act and how it will affect ones' planning for long-term care. The details of the CLASS Act are still uncertain.

What we do know and simply stated is that CLASS creates a new voluntary government program under which individuals will pay a monthly premium and will be eligible for modest benefits for their long-term care needs after five years of paying premiums.

While CLASS is often characterized as a long-term care program, it is primarily designed as a program to provide future assistance to the working disabled. Traditional long-term care insurance requires that applicants meet certain good-health requirements. CLASS will not have such health qualification requirements. The plan will be available on a guaranteed-issue basis.

Long-Term Care insurance is an important health insurance product designed to meet a growing need in this country. The good news is we are all living longer and medical advancements help us survice more illnesses and injuries than in the past. With all this said, it also means we have a greater need for long-term care.

While life insurance offers financial protection when someone dies, LTCi is a "living benefit" designed to protect you while you are alive. People need to be prepared to survive- not only physically if they get sick or need care, but also financially. If you needed long-term care, your assets could be depleted.

If you do not own long-term care insurance, here are some thing to keep in mind:

• It will be at least two years before CLASS is operational (2013) and another five years from that time benefore any benefits can be paid (2018).
• CLASS is not a contractual obligation (the way private long-term care insurance is). The provisions of the plan can be changed at any point by Congress.
• Lower premiums may be offered to healthy,low-income individuals and many in poor health will take advantage with the anticipation of benefits. As a result, those in good health (or with good incomes) will be subsidizing others. Private insurance is not based on income -- this type of 'subsidization' does not exist.
• The government plan is very limited in what it will eventually pay ($50 or $75 per day is way below the cost for quality comprehensive care at home and certainly far less than the cost for care in an assisted living community or skilled nursing home setting).
• PLUS, there are several advantages of private long-term care insurance offered on an individual basis or available through your employer.

For a free, no obligation consultation for your long-term care planning, call 949-854-3001 or 877-GO-4-LTCI or email me at dane@LongTermCareInsurancePros.com

Health Care Reform and LTC: What is the CLASS Program?

The health care reform bill (now known as the Patient Protection and Affordable Care Act), which includes the Community Living Assistance Services and Supports (CLASS) provisions has been signed into law.

Many of the details of the CLASS provisions are not yet defined and will be developed through regulation. Most of the terms of the new CLASS program that passed as part of the Patient Protection and Affordable Care Act will be developed by the Department of Health and Human Services over the next few years. Certain terms are set in statute,

including the following:
Enrollees will:

• Pay a monthly premium, through payroll deduction, that has yet to be determined, but most recent estimates indicate that the average premium will be $180-$240/month; that premium could be increased yearly to ensure that the CLASS fund is actuarially sound.

• Be covered on a guaranteed-issue basis;

• Be eligible for benefits for their long-term care needs after paying premiums for the first 60 months of coverage (i.e., a 5-year waiting period) and have worked at least three of those five years;

• Receive a lifetime cash benefit after meeting benefit eligibility criteria, based on the degree of impairment, which is expected to average about $75/day or more than $27,000 per year and is payable as long as the claimant remains disabled.

Now that the bill has been signed into law by President Obama, it will go to the Department of Health and Human Services, where the terms of the program will be worked through. From there it will be two years before the program goes into effect and another five years from that point before anyone is eligible for benefits.

Delaying the purchase of an LTC insurance policy because you think that the government program will cover your long-term care costs is not recommended. Any delays in long-term care planning can have an effect on the cost of a policy and possibly your insurability.

The advantages of an individual private LTC insurance policy are many:

• It does not require that the individual be employed.
• Offers a broad range of benefits and is better suited to address the high cost of care
• It does not have a minimum number of years an individual must pay premiums before benefit are payable: the coverage will begin paying benefits once the benefits trigger and waiting periods have been met.
• Any unused LTC insurance benefits are carried over from year to year.
• The policy provides access to care coordination services, quality providers and provider discount.

If and when the CLASS provisions are up and running in about 7 years and you have been in the workforce and contributing to the pool, you may have yourself a additional supplement to your solid private LTC insurance policy.

For a Free, No Obligation Long-Term Care Financing and Planning Consultation

Health Care Reform and Long-Term Care

Everyone is waiting for the results of the health care reform bill. Depending upon your age, one is looking at the different parts of the reform. The bill will be covering everything to demanding everyone get health insurance, Medicare reform and the Class Act (a voluntary program for working adults to help with some long-term care costs in the future).

If you are thinking that this health care reform will cover your long-term care costs, Think Again. It is time to get the information on what is long-term care, where this type of care is received and how and when people begin needing this type of care. And most importantly, how much does this cost?

What is long-term care insurance? Why is it so important to the aging baby boomers? The cost of care is staggering and increasing every year. The cost of long-term care insurance is usually a small part of what the actual costs are for care. The break even point of paying for this insurance for as long as 20-30 years could easily be as little 3-6 months of care.

Depending upon your age, financial situation and where you are going to receive your care, a long term care plan can be designed just for you.

Cost of care is different in every state. Find out the cost in your area.

For your own individual free, no obligation consultation, send an email to:
dane@LongTermCareInsurancePros.com or REQUEST A QUOTE

Long-Term Care Systems- A Comparison

A Washington Post article recently compared the U.S. Medicaid system unfavorably to the long term care systems for the elderly and those with disabilities employed in France and the United Kingdom. Going back 20 years, most of the developed world relied on a system similar to the one the United States uses: Poor enough and sick enough and you received some assistance; middle class and you were on your own (until your resources became so depleted that you no longer qualified as middle class.

Most developed countries determined that this approach was unnecessarily cruel and fiscally unwise, and revamped their systems to address the need for long term care, often in arrangements that combine government assistance with private long term care insurance. The U.S. response was to encourage its citizens to purchase private long-term care insurance. Despite tax subsidies, a government marketing campaign and efforts to coordinate private insurance with public benefits, the approach has been less than successful, as today only about seven million Americans own private insurance.


The systems in place in other countries have not been without problems, such as increasing costs and uneven availability of benefits. Germany has been forced to raise taxes to pay for the benefits it provides. France, Japan and the Netherlands have had to reduce benefits. In England, the long term care model is disparaged as the “postcode lottery,” as benefits vary by local jurisdiction. Although insurance-based systems are difficult to administer, they are superior to those that force people to impoverish themselves before they qualify for help. In revamping the U.S. health care system, perhaps legislators will examine the long term care systems of other countries and attempt to learn from their mistakes.


The responsibility should rest on you in determining what the best long-term care plan is:


Self-insure (be responsible for all financial obligations for long-term care)
Family (family pay for long-term care)
Medicaid (impoverish yourself to qualify)
Long-term care insurance (an annual premium with inflation protection to cover costs later)


For more information, schedule a consultation with a Long-Term Care Specialist, no cost or obligation.

Long-Term Care with the Help of a Reverse Mortgage

There is a problem when seniors cannot qualify for long-term care insurance. To qualify for this type of insurance you need to be in relatively good health. With very good health you can even get substantial discounts on long-term care insurance.

Reverse mortgages can help seniors who own homes by giving them the money to help pay for long-term care or anything that they wish. They use the equity in their homes which they are not required to pay back for as long they live in their homes.

The advantage of using the money from a reverse mortgage is that the seniors can tap into the equity of their homes, uses the funds to help with the cost of long term care and be able to stay in their homes longer, too.

The reverse mortgage helps the milliions of senior home owners on a fixed income recover some of the their spending power and financial security.

The reverse mortgages are govenment insured loans called FHA Home Equity conversion Mortgages (HECM).

For more information on long-term care financing, planning or reverse mortgages, call 949-854-3001 or visit LongTermCareInsurancePros

Long-Term Care Insurance Costs Rise About 2 Percent

A study by the American Association for Long-Term Care Insurance measured costs for top selling long-term care insurance policies that provided approximately $115,000 in current benefits, with protection increasing yearly as the individual ages.

The study showed that costs for long-term care insurance have risen about 2 percent compared to the prior year.

According to the study, costs can vary by as much as 60 percent from one insurer to the next. Experts advise consumers to compare policies or work with a long-term care insurance specialist with access to multiple insurers who can determine the most benefits for the lowest cost.

The cost of long-term care insurance is directly related to how much protection you purchase, the age you first apply, your health at the time of application and assumptions that vary from one insurer to another.

According to the association, more than half of all individual applicants are between 55 and 64, and one-third purchase a daily benefit of between $100 and $149. Most opt for an optional inflation growth rider that increases the potential pool of available benefit dollars each year.

The cost analysis priced typical coverage for individuals ages 55 and 65. The study reports that a 55-year-old married individual purchasing $172,000 in current protection will pay about $20 a week ($1,084 per year) by qualifying for available good health discounts. By age 65, they'll likely pay $63 a week ($3,275 per year) because costs increase with age and one must buy more coverage to keep pace with inflation, the report concludes.