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.

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.

• 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!

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.

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.

Can You Afford NOT to Have Long-Term Care Insurance?

Do you have the perception that long-term care insurance is too expensive? Many financial experts say that long-term care insurance is important for protecting retirement savings. And the cost of not having coverage can be devastating.

Most people do not know realistically know what the cost is for long-term care services, which includes home health care, custodial services and nursing home care.

A lot of people think they can just pay for long-term care services if or when they need it, but it doesn't take long for the cost of care to exceed the cost of insurance. The cost of just two or three years in a nursing home can wipe out the average American's retirement savings.

Some insurance companies offer policies that provide greater flexibility as to how benefits can be used. For example, according to LongTermCareInsurancePros.com, policies that offer cash benefits instead of traditional reimbursement can cover the indirect expenses associated with long-term care, such as travel expenses, lost income for a family member serving as a caregiver, housekeeping services or other out-of-pocket costs. As soon as you trigger benefits, you receive a cash payment.

Some carriers offer a combination of cash and reimbursement in terms of paying claims.

For more information on designing a long-term care policy, Visit: LongTermCareInsurancePros

Health Care Reform is in News, But Not Understood

There has been widespread coverage of health care reform, but consumers still admit that they know very little about the health care system in the United States. This is according to the 3rd Annual Deloitte Center for Health solutions Survey of Health Care Consumers.

Here are some of the findings:

• 23% said they understand how the health care system works
• 76% grade the system a "C" or below
• 48% believe that 50% or more of health care dollars are wasted
• 57% said they are satisfied with their health plan
• 46% said they understand their health insurance coverage
• 25% do not know how much they are paying for health insurance

Even though consumers tended to rate the "system" low, when it came to their own personal experience they are much more likely to say they are satisfied, even if they do not know how much they are paying.

The survey also identified a number of contradictions when it comes to consumer perception, attitude, and behavior about health care decisions and personal health status.

People perceive themselves to be healthy, yet suffer from chronic conditions. 7 out of 8 (88%) consumers surveyed believe they are in "excellent," "very good," or "good" health, yet more than half (54%) have been diagnosed with one or more chronic conditions, and of the 56% who take prescription medications, almost half (47%) take three or more daily. Only 1 in 5 surveyed said they participate in a wellness program.

They have mixed emotions on the government's role in health care. 42% support government-mandated health insurance, 38% oppose it. 33% believe that the marketplace needs 10 or more insurance companies competing in order to ensure consumer choice.

The are financially confident, yet forego care because of cost. They are interested health records, but are slow to use them. Three in four consumers are confident that the medications they take are effective.

People are slow in making changes to their health coverage. It often takes a major event to even make people begin to think about the kind of coverage they have or should have. At this point, it may be impossible to get the coverage you want due to chronic illness or the type of medications you are taking. It is important to be proactive in regards to your health.

This is only the beginning of what is to come with Health Care Reform.

Trying to Understand Health Care Reform

I spent a couple of hours last week attending an informational seminar on Health Care reform, the Patient Protection and Affordable Care Act.

We were provided a timelime of the implementation dates for key provisions. The timeline begins in 2010 through 2018. The number of pages of this bill is over 2000 pages, which we were told is really just an outline. When finished, it could be well over 200,000 pages.

Some of the changes taking place in 2010 are:

• Provide dependent coverage for adult children up to age 26 for all individual and group policies.
• Prohibit individual and group health plans from placing lifetime limits on the dollar value of coverage and prior to 2014, plans may only impose annual limits on coverages determined by the Secretary.
• Prohibit insurers from rescinding coverage except in cases of fraud and prohibit pre-existing condition exclusions for children
• Establish a process for reviewing increases in health plan premiums and require plans to justify increases.*
• Provide a $250 rebate to Medicare beneficiaries who reach the Part D coverage gap in 2010 and gradually eliminate the Medicare Part D coverage gap by 2020.
• Authorize the Food and Drug Administration to approve generic versions of biologic drugs and grant biologic manufacturers 12 years of exclusive use before generics can be developed.

*Anthem Blue Cross who was in the crosshairs of the huge rate increases actually was approved by the California Department of Insurance. Why?

The system is broken and with all the new laws, cost containment doesn't seem to be addressed in this legislation.

I am not sure how any or all of this affect you and your families. I feel better keeping you posted and venting a little.

You can reach me at 949-854-3001 or dane@LongTermCareInsurancePros.com

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