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
Friday, October 30, 2009
Tuesday, October 27, 2009
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.
Tuesday, October 20, 2009
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:
For More Information: Visit LongTermCareInsurancePros
"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
For More Information: Visit LongTermCareInsurancePros
Thursday, October 8, 2009
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
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
Thursday, October 1, 2009
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.
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.
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
Subscribe to:
Posts (Atom)
Posts
