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
Saturday, March 20, 2010
Tuesday, February 23, 2010
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.
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.
Monday, January 18, 2010
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
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
Monday, January 4, 2010
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.
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.
Monday, December 28, 2009
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
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
Thursday, December 17, 2009
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.
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.
Tuesday, December 1, 2009
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!
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!
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