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.
Thursday, October 1, 2009
Monday, September 14, 2009
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
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
Tuesday, September 8, 2009
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
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
Tuesday, September 1, 2009
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!
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!
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.
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