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!
Tuesday, September 1, 2009
Friday, August 21, 2009
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
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
Thursday, August 13, 2009
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!
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!
Sunday, August 2, 2009
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.
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.
Thursday, July 23, 2009
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.
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.
Wednesday, July 15, 2009
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.
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.
Tuesday, July 7, 2009
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!
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!
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