The American Association for Long-Term Care Insurance just released results of their research that reported what 10 leading long-term care insurers pay each and every day of the year. It's $10.8 million...365 days a year. That's 53% more than just three years ago in 2007.
The long-term care insurance industry often takes a beating in the media. That has certainly been the case over the past year as insurers announced rate increases and several decied to exit the business.
With so much money paid to claimants, it is obvious that this type of insurance is utilized by its insured. Planning for long-term care is necessary. To determine if long-term care insurance is appropriate for your individual situation, it's best to consult with a Long-Term Care Specialist.
Saturday, February 12, 2011
Thursday, January 20, 2011
Basic Parts of a Long-Term Care insurance Policy
You’ve done your research and have decided that Long Term Care Insurance (LTCI) is right for you and your family. The next step is to become familiar with the basic structural components of an LTCI policy.
When building an LTCI policy there are four primary variables that must be considered. They are:
• Daily benefit amount
This refers to the maximum amount an insurance company will pay per day when extended care is needed. To determine the proper daily benefit amount you must first determine the cost of care in your part of the country.
• Benefit period
This refers to the length of time an insurance company will pay benefits if the insured receives the full daily benefit amount. If the insured receives less than the daily benefit amount then the insured’s policy will last longer than the defined benefit period.
• Elimination period
The elimination period is similar to the deductible on your homeowners or auto insurance. It is the amount of money you, the insured, agree to pay before the insurance company begins paying.
• Inflation protection
Many insurance companies provide several options when it comes to inflation protection. The first and most costly option is 5% compound inflation option. This option, as the name suggests, automatically increases the daily benefit amount every year. Another option typically offered is a guaranteed purchase option which gives the policyholder the opportunity to purchase additional coverage. Under this option if you elect to increase your coverage your premium will increase, too.
These are the main parts of the LTCi policy. There are other riders and features that add to the flexibility of the LTCi policies. When it comes time to structure your LTCi policy, consulting with a LTCi specialist will save you considerable time and effort by using his experience and education to design a plan that is right for you.
When building an LTCI policy there are four primary variables that must be considered. They are:
• Daily benefit amount
This refers to the maximum amount an insurance company will pay per day when extended care is needed. To determine the proper daily benefit amount you must first determine the cost of care in your part of the country.
• Benefit period
This refers to the length of time an insurance company will pay benefits if the insured receives the full daily benefit amount. If the insured receives less than the daily benefit amount then the insured’s policy will last longer than the defined benefit period.
• Elimination period
The elimination period is similar to the deductible on your homeowners or auto insurance. It is the amount of money you, the insured, agree to pay before the insurance company begins paying.
• Inflation protection
Many insurance companies provide several options when it comes to inflation protection. The first and most costly option is 5% compound inflation option. This option, as the name suggests, automatically increases the daily benefit amount every year. Another option typically offered is a guaranteed purchase option which gives the policyholder the opportunity to purchase additional coverage. Under this option if you elect to increase your coverage your premium will increase, too.
These are the main parts of the LTCi policy. There are other riders and features that add to the flexibility of the LTCi policies. When it comes time to structure your LTCi policy, consulting with a LTCi specialist will save you considerable time and effort by using his experience and education to design a plan that is right for you.
Wednesday, January 12, 2011
Long-Term Care Insurance-What to Consider...
The news has been filled with lots of news regarding the long-term care insurance industry. Some carriers are announcing sizable premium hikes while other carriers are leaving the long-term care business entirely.
There are a couple of reasons that carriers find the need to raise premiums.
There are a couple of reasons that carriers find the need to raise premiums.
- The carriers are seeing claims that are higher-than expected.
- They have been hampered by low interest rates making it difficult to grow a cash cushion.
Does this mean that you should never consider this type of insurance? Absolutely not! It does mean that you should do your homework.
Policies offer dozens of permutations such as different daily benefit amounts, coverage lengths and ways to protect against inflation. Consult with an independent Long-Term Care Specialist who can help you design a plan that is specific to you and your situation.
Ask yourself if long-term care coverage is worth it?
You may be paying annual premiums for 20-30 years before making a claim or never using it. But skipping coverage can prove costly, too. The most expensive form of long-term care, a private nursing home can run more than $200 a day or more than $70,000 a year.
What will the cost be 30 years from now?
Tuesday, November 30, 2010
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.
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.
Tuesday, November 9, 2010
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.
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!
Wednesday, September 1, 2010
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.
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.
Wednesday, August 11, 2010
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.
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.
Subscribe to:
Posts (Atom)
Posts
