best term life insurance

How to Find a Good Home Health Care Caregiver

2008-09-28T05:22:00.003-07:00

How does one choose the best home health care caregiver? When you or a loved one needs long term care, keeping it simple is always the way to go. For most people who have limitations in their daily activities, the best type of care is the at-home type. Having a caregiver who comes by on a daily or semi-daily basis to help with the tasks you can no longer perform is an ideal solution. But how do you choose someone you can trust to come into your home?

How Do I Choose a Home Health Care Provider?

Check with the experts in the field of home health care. There are a multitude of companies on the market today which specialize in providing home health care workers to those who need it. Such companies have reputations which can be verified through a simple online search of state governing bodies and consumer protection organizations. Companies who furnish home health care workers are usually very stringent in their recruiting tactics and background checks and carry large liability policies to cover anything that might go wrong.

Ask for recommendations. Talk with your doctor about who he or she would recommend in home health care. This may be your best source of information. Also, talk to friends and neighbors about who they have used or if they know someone who used a home health care worker that they were particularly pleased with. Word of mouth is often the most reliable type of recommendation. Whether the average person praises or condemns another's work, usually they have nothing to gain or lose.

What Qualifications Should I Look for?

If you must choose a long term care giver without the help of a service, here are some things to keep in mind. Check to make sure that all licenses are up-to-date. Be sure that the care giver is qualified to perform the duties that he or she will have to do. In certain places, you must be a Registered Nurse to administer any type of medication. If you cannot do this yourself and need help, then you may have no choice but to go with an RN.

Meet with the caregiver at least twice to familiarize yourself with him or her. Be sure you feel comfortable with the person. Instincts mean a lot. Ask for references and be sure to check them. Ask questions such as why the person left their last job and whether the old employer would consider rehiring them or not. Run a background check. By simply getting some basic information and paying a small fee, usually less than $30, you can run a background check on a person in the state you are in. This may come back with information that will surprise you and aid you in weeding out inappropriate candidates for the job.

Where Do I locate Home Health Care Workers?

A good source of potential home health care workers is local hospitals, clinics and nursing homes. Often nurses and other health care workers are open to working a little on days they are off or even picking up a few extra hours every day. Check with the human resources departments of such places to see if you can place an ad on a bulletin board or if they have some names they could refer to you.

Long-Term Care Costs - What Are They in Your Area?

2008-09-28T05:22:00.002-07:00

Most people are misinformed on who exactly pays for long-term care. Medicare and other health insurance do not cover most of long-term care services. So now it's important to understand...how much will it cost me?

It is important to know what the costs of Long-Term Care are in your particular area. The costs vary by facility type: nursing home, assisted-living facility or your own home. It also varies according to geographical location.

Long-Term care costs are important to know when you are doing your estate and retirement planning. With Long-Term care insurance as part of your estate and retirement planning, it is necessary to understand what the costs will be.

Here are three reasons it is important to know the specific costs in advance:

1. You need to know if you've got enough net worth to self-insure. You may be surprised to learn that Long-Term Care in your area can be considerably more than sending a kid to college.

2. If Long-Term Care insurance is for you, you need to know what monthly benefits you will require. Where you want to receive the benefits will help determine what benefits you choose. You don't want to under-insure or waste money by over-insuring. Are you living in an expensive state where you will be receiving care or will you be retiring to a State where costs are lower?

3. Long-Term Care costs is an important factor in deciding where to retire. It is wise to have the costs available to you ahead of time when putting a Long-Term care plan in place.

Long-Term Care Insurance - Where is it When You Need It?

2008-09-28T05:22:00.001-07:00

I cannot tell you how often I get a call from a distraught husband, wife, life partner, children or nieces or nephews of people they love. The call usually goes something like this.

* "My wife has been having trouble managing the household chores, shopping, etc. and just staying organized."
* "My husband just came back from the Doctor's office and was diagnosed with early stages of Alzheimer's. "
* "I think my mother is ready for a nursing home, she just can't stay alone anymore."
* "My uncle needs some assistance, I think an assisted living facility would be the right choice for him.

The next question is always "I would like to learn about and purchase Long-Term Care Insurance for __________."

I am always sad to advise the client that long-term care insurance is not available to their loved ones in the above situations. It's the equivalent of calling your local insurance agent as you are running out the door when your house is burning down. Where is the insurance when you need it?

I guess that's what insurance is. According to the English dictionary, insurance is summed up by these definitions.

1. Insurance: Legal contract that protects people from the financial costs that result from loss of life, loss of health, lawsuits, or property damage. Insurance provides a means for individuals and societies to cope with some of the risks faced in everyday life.
2. Financial Protection against loss or harm: an arrangement by which a company gives customers financial protection against loss or harm such as theft or illness in return for payment premium
3. Money paid by an insurance company: The sum of money that an insurance company pays or agrees to pay if a specific undesirable event occurs.
4. Means of Protection: An act, measure, or provision that gives protection against an undesirable event or risk

Why do we have insurance?

In life, losses are sometimes unavoidable. People may become ill and lose income or savings to pay off medical bills. Individuals or their relatives may die of illness or accidents. People's homes or other property may suffer damage or theft.

People also may accidentally cause injury to others or damage to the property of others.
No one knows in advance when a loss will occur or how serious that loss will be. The uncertainty surrounding potential losses is known as risk. Insurance offers a way for people to replace risk with known costs-the costs of buying and maintaining insurance policies.

Long-Term Care insurance is available with substantial health discounts so it is important to obtain this type of coverage when you are still in good health. According to the American Association for Long-Term Care (AALTCI) the following is the percentage of Long-Term Care Insurance applicants who qualify for good health discounts or are declined coverage.

Percentage of Long-Term Care Insurance Applicants Who Qualify For Good Health Discounts

Age 40 to 49 --- 63.2%
Age 50 to 59 --- 51.5%
Age 60 to 69 --- 42.2%

Percentage of Applicants Declined Coverage (Individual Policies)

Age 50 to 59 --- 13.9%
Age 60 to 69 --- 22.9%

A good place to start getting information is talking to a Long-Term Care Specialist who represents multiple long-term care insurers. The costs vary and acceptable health conditions vary among the top carriers.

What Factors Cause Changes to Long Term Care Insurance?

2008-09-28T05:22:00.000-07:00

In our changing economy the cost of long term care insurance has become a greater concern. Medicare is changing. Increased medical technology has lengthened your life expectancy. Provisions for these extra years and levels of care are issues many of us are facing. These shifts in lifestyle are causing many to consider the benefits of purchasing Long Term Care insurance (LTC insurance). The difficulty of the decision is increased by the multiple variables in cost based on coverage.

Factors of Age

The age at which you purchase your policy is a large factor in determining the cost of your Long Term Care insurance. Since a younger person is less inclined to make a claim his or her premium is much lower than that of an older person. Old er client's premiums are much higher as the risk involved is greater. As with any insurance policy the higher the risk the more costly the premium will be. Your LTC insurance policy may not come with a fixed rate; and premiums may continue to increase as you age.

Factors of Health

A healthy individual with a clean medical record can also expect lower rates. Insurance is a lucrative business and the insurers expect to profit from it. Those who are considered a potential risk because of a poor health record can expect to incur a higher premium. Depending on certain pre-existing conditions you may find it impossible to obtain coverage.

Impact of Coverage

Long Term Care insurance policy choices are as abundant as the colors of the rainbow. You may modify and adjust your policy to fit your personal needs and budget. You may begin your policy at a young age with few options. As you age and your potential need for care increases you may add options and services to increase your level of comfort and care.

Waiting Period

The waiting period is the number of days you choose to forego coverage and opt to pay for expenses out of your own pocket. This is a bit like your deductible on other forms of insurance. It is possible for waiting periods to range from 0 to 100 days with the shortest waiting period commanding the highest price. Your present and projected future income will be helpful in determining which time frame will work best for you.

Type of Care

The type of care you choose to have covered will have a big effect on the cost of your premium. This will also include your choice of coverage duration. In home long term care is the least expensive. You may determine the duration of in home care. You may also determine the type of care to be covered. A home health aid will cost considerably less than a skilled nurse or therapist.

Here are some questions to ask. Will you require someone to administer medication and therapy, or someone to assist you with light household duties? For how many hours a day and how many days out of the week do you want your LTC insurance policy to cover the costs of your assistant? If you no longer feel safe when left alone where do you wish to reside?

Of course, you do not necessarily know with certainty many of these answers. Even so, your educated guesses will help you make the decision. Purchasing a policy which contains adequate assisted living facility coverage can save you quite a bit of money in the long run. Many assisted living facilities cost half of what a nursing home would charge. They also offer a wider range of freedom while providing the monitoring and assistance your need.

Whether the plan is for yourself or someone you love considering the type of nursing home or extended care facility that will be used if this issue ever occurs is a really good idea. This will help you decide how much coverage you should purchase for this crucial time. You do not have to let circumstances decide for you.

The Cost May be Less than You Think

Most people who have not purchased LTC insurance estimate the cost of coverage to be 50% higher than it actually is. Prices can range from $297 a year for a 40 year old with an inexpensive plan and company to $1,200 a year for a 70 year old with the same plan and company. On the other hand a 40 year old can pay $3,500 or more per year while a 70 year old can pay over $9,000.

What You Need to Know About Long Term Care Insurance

2008-09-28T05:21:00.000-07:00

What is long term care insurance?

Long term care insurance is a type of health insurance designated to provide care for individuals living with a chronic illness or injury. Long term care insurance provides both medical and non-medical assistance to the insured, whether in a care facility such as a group home or a nursing home or living in their own home and in need of help with their daily care. It differs from other types of care that are covered by traditional insurance coverage because it pays for help with custodial care, or assistance with tasks of everyday living that most people can do for themselves.

It is often a difficult task to begin thinking and talking about long term care insurance. We don't like to think of ourselves as no longer independent and able to care for ourselves. However, just as with car insurance, life insurance and home owner's insurance, long term care insurance is an extremely important piece of security and protection for you and your family. You may never need long-term care, but when a disabling injury or illness affects your life it often results in long term effects that prevent you from carrying out your activities of daily living such as bathing, dressing, and using the bathroom. This is when it is often necessary to have ongoing help. It can be burdensome or even impossible for family members to provide this level of care on a long term basis. When this is the case, other long term care options may be the most logical choice for your needs.

Is Long Term Care Insurance Expensive?

Depending on the level of care that is needed and the length of time the care is needed, long term care can become extremely expensive. The costs can include supplies and medications, nursing care or direct care help, adaptive equipment, physical therapy equipment, and other needs that are not covered by traditional health insurance. These long term care needs may be a temporary situation, but are generally health care needs that the insured well have for the rest of their lives.

Like all types of insurance, it is possible you may never have a claim against your long term care insurance policy, but if chronic illness or injury leaves you unable to independently care for your activities of daily living. It is expected that this year over 9 million adults in America will need long term health care. That number is expected to rise as high as 12 million by the year 2020. As many as 70 % of elderly adults who need long term care will receive it at home from family or friends. Long term care insurance will cover the costs associated with this type of at home care.

Of adults over the age of 65, there is a 40% chance they will need to consider nursing home care. About 10% of the people who enter a nursing home will wind up staying there for five years or longer. By having long term care insurance, you don't need to worry about whether your Medicare or primary health insurance will pay for care in the nursing home. Your long-term care insurance will cover these expenses.

What About Medicare?

Many seniors depend upon Medicare to help pay for their health care costs. However, Medicare does not pay for most long-term care. Medicare will pay for medically necessary skilled nursing care whether in facilities or home care, but you must meet eligibility requirements and most other options must be paid for by different means, such as long-term care insurance.

However, not all long term care insurance is the same. Some will pay only for nursing home care, while others will pay for a wide range of services and cares such as informal home care, adult day care centers, assisted living services or facilities, medical equipment and others.

When you are considering different long-term care plans, it can be very helpful to think about the different activities and functions you may need help with. You should consider what future needs you may have, especially any that are based on conditions or situations you are already dealing with. Consider activities of daily living such as bathing, dressing, eating, toileting, and moving in or out of bed, a chair or a wheelchair. Next, think about additional services you might need help with like shopping, preparing meals, housework and laundry, getting to appointments, handling finances and bill paying, using the telephone and home maintenance and repair work. Further, consider whether you will need help with remembering to take your medications, monitoring your diabetes, using eye drops or ear drops, getting oxygen or caring for a colostomy bag or a bladder catheter. These are all areas that a long term health insurance plan can help you pay for.

Long-Term Care Insurance - Can a Reverse Mortgage Be Right For You?

2008-09-16T08:04:00.003-07:00

Reverse mortgages have been battered in the media recently, but reverse mortgages are often the perfect solution for cash-strapped seniors. The dollars that come in from reverse mortgages can be the difference between paying basic bills such as food and utilities, and even certain medical expenses or not.

Reverse mortgages are designed for people 62 and over. They enable you to have a bank buy back your home while you're still living in it. You have to pay the money back (plus interest) when you vacate or sell the home, and there are fees involved. Still, these mortgages do have a place, and they're rapidly finding it.

Here's what you need to consider before you (or your parents) commit to a reverse mortgage:

Your age. These mortgages aren't for everyone, but the older you are, the more likely you are to benefit from one. For one, you probably have more equity in your home. But the other reason is this: Banks calculate the payout based on not only the value of your home, but your age and average expected length of life.

Your situation. A reverse mortgage probably isn't for you if you're not planning to stay in your home for a long time, so consider that upfront. Then think about other factors related to both your current and future lifestyle. People get these loans for a variety of reasons. Some do it to finance an active lifestyle in their retirement, others because the home needs to be repaired or updated with health care equipment or to help with the rising costs of health care.

Learn how the loans work. Most reverse mortgages require no repayment as long as you live in your home. The loan must be repaid in full, along with interest, when the last living borrower dies, sells the home or moves away.

Understand the lender's role. A lender - typically a bank - will provide you with a loan in an amount ranging from 20 percent to 60 percent of your home's equity. In exchange, the lender will receive a portion of your home's value when you die or sell the home.

Choose a payment preference. The loan can be paid to you in three ways: as a lump sum, in regular monthly or quarterly installments, or as a line of credit you can tap as needed.

Know your responsibilities. Borrowers are responsible for property taxes, insurance and home repairs. Your loan could become due and payable in full if you fail to meet those responsibilities.

Assess neighborhood real estate prices. Over time, a reverse mortgage whittles away at the home equity you built up over the years. But if you live in an area where home prices have a history of rising, your home's equity could continue to go up despite your reverse mortgage. It goes without saying, though, that you can never count on such increases to last forever. As evidence, just consider the housing slump and accompanying foreclosure fallout sweeping real estate markets across the United States.

The reverse mortgage can be an excellent financial planning tool for seniors from all walks of life. It can enhance their retirement years by providing some extra income to help provide seniors with a lifestyle of their choice. They can be used as part of their estate or legacy planning.

Long-Term Care Insurance - Learn About Your Options

2008-09-16T08:04:00.002-07:00

There are many thoughts that go through the heads of people as they are approaching retirement or even when they begin planning for retirement well before retirement age. Besides, what is the actual age of retirement today? As inflation increases and living expenses are increasing, more and more people are just plain forced to work longer.

The good news is that we are living longer. Hopefully, you will live a long and prosperous life and health or money issues won't affect your golden years. If long-term care is needed due to an injury, illness or even a cognitive disorder, long-term care insurance is one of the ways you can deal with the unpredictable long-term care costs which are very expensive. But to be prepared, you should consider how to make long-term care insurance work to your advantage.

Fortunately we now have some financial tools to help make the golden years more comfortable emotionally, physically and financially. A very viable solution may be long-term care insurance (LTCi). Long-term care insurance used to be thought of as "nursing home" insurance, but that is no longer true. Seek the counsel of a Long-Term Care Specialist who has special education and training (LTCP, CLTC) in long-term care financing and planning.

You will save hours and hours of research by just consulting with an independent agent who specializes in long-term care insurance.

Here are options you should look at and discuss with your Long-Term Care Specialist when considering long-term care insurance.

Activities of Daily Living: Most insurance policies respond to issues that require assistance with the Activities of Daily Living (ADLs). These include dressing, bathing, transferring, toileting, eating and continence as well as cognitive ability.

Companies Ratings: Financial strength as rated by A.M. Best Co., Moody's and Standard and Poor's

Daily/Monthly Benefit: The amount of money one will receive on a daily or monthly basis when a claim is made.

Benefit Period: The length of time the daily or monthly benefit will be pay usually in years.

Elimination Period: The number of days you are responsible for your own before the insurance company pays often referred to as a deductible.

Inflation Protection: This is a hedge against increased cost of care in the future.

Shared Care Rider: Allows a couple/partners to share each others benefits.

Spousal/Partner Discount: Discounts for married couples or partners

Health discount: Discount is awarded for above average health.

Home Health Care Rider: Offers a zero day elimination for care provided in the home

Guaranteed Renewable: When premiums are paid on time, one cannot be cancelled for changes in your health.

30-Day Free Look: When policy is issued, you have 30 days to change any of the benefits or options or to decline coverage.

Potential Income Tax Benefits: Business owner can deduct some or all of the premiums.

These are some of the options to consider when evaluating long-term care insurance plans, Long-term care insurance is a little more complicated than life insurance or health insurance, so it's best to consult with a Long-Term Care Specialist. A long-term care specialist will educate you in long-term care planning. He will determine if it makes sense financially and then together you will design a plan that fits your own particular situation.

A Unique Way to Protect Yourself From the Financially Devastating Costs of Long Term Care

2008-09-16T08:04:00.001-07:00

The potential cost of everyday care is huge if you are one of the unlucky people to contract Alzheimer's disease, Parkinson's disease, Multiple Sclerosis, or have a major stroke. I don't think anyone would argue otherwise. Therefore, I am not going to get in-depth into the statistics of the possibility of needing long term care other than to say that there is a better chance of needing long term care at some point during your elder years than there is a chance of your home burning down, and most people protect against that happening by purchasing a homeowner insurance policy. I am also not going to get in-depth in telling you how expensive it can be other than to say that it currently averages around $70,000 per year (higher in some areas like Chicago or New York City) and its costs are increasing at a pace higher than the rate of inflation.

The trouble is, even knowing all of this, only a very small percentage of people have chosen to protect themselves by purchasing long term care insurance. The reasons for not purchasing usually go as follows:

1) "Nothing will happen to me and if it doesn't I'll have wasted alot of money on something that I didn't use."

2) "I can just set aside some money for long term care in a CD, that way if I need if for something else it will be accessible."

3) "Long term care insurance costs too much and I might not need it" (see reason #1)

4) Any and all combinations of the above

THERE IS AN ALTERNATIVE

What many people don't know is that there is a way to get protection from the high cost of needing care resulting from a chronic illness, while not spending all of your retirement money on long term care insurance premiums. In fact, this alternative way that I'm going to show you will allow you to free up more of your money for your own enjoyment, and also even pass money along to children, grandchildren or your favorite charity.

The alternative that I'm speaking of is a special type of life insurance policy called a Linked Benefits Life Insurance policy. Only two major insurance companies that I'm aware of issue these products, but I've found them to be an instrumental part of my practice for people that understand the need of protecting themselves, their families, and their investment portfolio from the ravages of potential long term care expenses, but just can't or won't buy a regular long term care policy.

HERE'S WHAT IT IS

A Linked Benefits Life Insurance policy is basically a regular universal life insurance policy, with a special rider or riders attached to it that multiplies the money invested in it by three or more times if it is used for qualified long term care expenses. If the policyowner never needs long term care services, the original amount invested, plus any accumulated interest, can pass to the policyowner's loved ones tax free(if a beneficiary other than the estate is named and if the policyowner's estate does not exceed the federal estate tax allowance amount) because it is considered to be first and foremost a life insurance policy. Incidentally, many people whose sole reason for not purchasing long term care is that they would be wasting their money if it was never used, love the fact that if long term care isn't needed the money will be passed on to loved ones instead of going to waste. The final advantage of a Linked Benefits Life Insurance policy is that if you decide that you want the money back that you originally invested in it, simply write a letter to the issuing insurance company notifying them of this fact, and they will send you a check, no questions asked! (Note: if the money accumulated any interest during the time it was in the policy, you might be responsible for taxes on those gains.)

HERE'S HOW IT WORKS

Let's look at example of a Linked Benefits Life Insurance policy at work. Nancy Jones, age 65, a non-smoker and in good health has $300,000 set aside in a bank CD that she is saving in case she needs long term care services. She doesn't want to invest in a long term care insurance policy because she lives an active lifestyle and has no family history of any chronic illness and believes there is a good chance that she may not need it, but she wants to prepared just in case. She would, however, like to use some of the $300,000 to supplement her social security, a portion of her deceased husband's pension, and a mutual fund IRA that she withdraws from for a vacation every year. She could continue to do things as she's doing them and leave the money in the CD, but there are two problems with that: 1) She currently can't use any of the money for fun in case she is diagnosed with a chronic illness and would need it. 2) If she does need the money, $300,000 could be used up in two to four years depending on the costs of care in the area where she lives. Also, these costs are rising at over 4% per year so suddenly that $300,000 doesn't seem like so much. After reading a helpful article on the internet, Nancy decides to purchase a Linked Benefits Life Insurance policy with $100,000 of her $300,000 CD. She also decides to add two available riders to her policy. Let's look at what she was able to do by investing 1/3 of her CD into a Linked Benefits Life Insurance policy.

The first, and biggest thing she did was to turn $100,000 of CD money into $499,218 worth of coverage, nearly a 500% increase! The policy will provide her with $83,203 per year over 6 years, which works out to approximately $6,934 per month if she needs care. If her care costs less the money will last longer than six years. The second thing that she did was to free up $200,000 to use for her enjoyment since she was able to leverage $100,000 into darn near $500,000 for long term care needs (nearly $200,000 more than her original CD amount.) She can now use $200,000 without worrying that she might need it for care. The third thing she did was that she prevented the money from going to waste if she never needed long term care services. If she doesn't need care, approximately $166,406 will be able to passed on to children, grandchildren possibly tax free if she names a beneficiary and doesn't have assets that exceed the Federal Estate Tax Minimum Allowance. If she ever decides that she is uncomfortable with the arrangement and wants her $100,000 back, all she has to do is write a letter to the insurance company and they will write her a check to reimburse her original premium.

Note: The above example is based on Nancy Jones. Actual amounts vary based on an applicants age, gender, and health conditions.

....ONE MORE THING

One other thing that I forgot to mention, if Nancy Jones did end up needing to long term care services, the Linked Benefits Life Insurance policy, like regular long term care insurance, would allow her the option of receiving care in her home from caregivers as opposed to having to go to a nursing home or other care facility. This is an important issue for many people. If Nancy had to go on Medicaid, which is a good government provided program, but doesn't allow for much flexibility, she would be forced to go to a nursing facility as Medicaid does not currently provide for in home care.

What Women Need to Know About Long Term Care Insurance

2008-09-16T08:04:00.000-07:00

If you have assets you want to protect, can afford the premiums, and want to be sure someone other than the government will take care of you should you need it, then long term care insurance is for you. This is especially true if you are a woman. Long term care insurance is a key component of a sound financial plan.

Why Do Women Need Long Term Care?

Women have a significantly higher probability of needing long term care as they age, whether that care comes from home health care workers, nursing homes or assisted living facilities. Just the fact the women live longer than men increases their probability of needing such care. Because we live longer, we run a greater risk of falling victim to debilitating diseases, Alzheimer's, dementia, broken bones and other medical conditions that often necessitate long term care. In addition, since women are typically the caregivers in the family, quite often if a man is in need of long term care or assistance, if his wife can provide that care, she does. With men statistically dying younger, that leaves no one to take care of women when they need it.

A major concern, especially when it comes to nursing homes and assisted living facilities is privacy and preserving your dignity. Sadly, Medicare and Medicaid coverage will cover only certain facilities and for semi-private rooms only. Often you spend your remaining days in a place that, given the opportunity, you would not have chosen for yourself and sharing a room with a stranger. Sounds pretty unfortunate to me. Luckily long term care insurance can save you from that situation.

What You Need To Do To Protect Your Dignity And Health

Women need to be proactive in making sure that they have long term care insurance for themselves to protect their own dignity, security, privacy and financial assets. They need to educate themselves on the types of policies on the market and the limitations of each. You want to make sure that whatever policy you choose covers the type of care you would typically choose. Often there are restrictions, especially on home health care. Another thing to be sure of is that your policy has inflation protection built in, because the price of care today will be much different in the future, especially if you don't need to use it for another twenty plus years.

Be sure to find out about any possible discounts to help save you on premiums. Often, taking out a joint policy with your spouse will reduce the cost of separate policies. But if your spouse is reluctant to carry such insurance, go ahead and make sure you are covered. Women need this protection much more than men do. There may also be a cost break if you are in good health at the time you first buy your policy. Also, making one yearly payment on your policy tends to save you the charges affiliated with payment plans.

Investigate all the options available to you in selecting your policy. Give serious thought to how long you can afford to cover yourself before the long term insurance kicks in. This will help you choose the best elimination or waiting period for your policy. If you are unsure about your future finances, maybe a nonforfeiture clause would be a good idea, so you still have some coverage should you need to cancel your policy for financial reasons.

How to Find a Good Home Health Care Caregiver

2008-09-16T08:03:00.000-07:00

Everything You Need to Know About Long Term Care

2008-08-20T21:58:00.003-07:00

It's very easy to get lost in the world of insurance. Between car, boat, house, pet, bike and health insurance, the thought of adding any more insurance bills is a bit daunting. Furthermore, we have family, friends, lawyers, financial advisers all telling us what type of insurance to buy, where to buy it, etc. Throw in the Internet and our library of resources balloons exponentially. Soon we ignore everyones advice and just forget about it. But in some cases that's obviously not the right decision to make.

Certain types of insurance are required by state law. Long term care insurance is not one of them, but as more and more baby boomers reach their 60s and 70s and the cost of health care rises, LTCI (long term care insurance) is becoming a pretty hot topic. The New York Times recently opened up a Q&A about LTC and the response was overwhelming. Interestingly though, many of the comments were not necessarily about how to shop for LTCI, but instead questions on what long term care insurance actually was. Obviously there is a need to educate the public about this issue.

Guidelines For Selecting the Right Long-Term Care Insurance Policy

2008-08-20T21:58:00.001-07:00

Care Settings:

There are 3 main types of policies:

1. Home Healthcare Only

2. Facility Care Only

3. Comprehensive (this is a combination of the two).

Home Health Care Coverage, for example, means you receive insurance benefits covering in-home care services provided by a licensed or registered practice nurse or therapist. Respite Care guarantees a facility will offer some help about one to two weeks each year to those caring for a homebound person. Adult Day Care can also help, ensuring assistance is provided during the day for recreational, therapeutic and personal care. When looking at policies, make sure the care settings are what you want and that you are comparing apples to apples.

Inflation Protection:

1. No inflation benefit - the Daily Benefit never grows. It remains the same for the life of the policy,

2. Future purchase option-you have a limited right to periodically increase your Daily Benefit. When you choose to increase your Daily Benefit , however, you do not have to prove that you're still healthy. When you choose to increase your Daily Benefit, your premium will go up because you are buying additional coverage,

3. Automatic Inflation Benefit-your Daily Benefit automatically grows each year by a certain percentage which you choose when you purchase the policy. The automatic increases in the Daily Benefit each year do not make the premium go up. There are many different types of Automatic Inflation Benefit. The most common are 5% Compound, 5% Simple and 3% Compound. .

Daily Benefit:

How much will the policy pay for each day that you receive qualified care? When comparing policies, make sure you understand how much of the Daily Benefit is available for each care setting. Some policies may pay a smaller percentage of the Daily Benefit for care that is received at home or in an assisted living facility.

Benefit Period:

How long is the policy designed to pay benefits while you qualify to receive benefits? It is sometimes described in terms of dollars or "pool of money", sometimes in terms of years, and sometimes in terms of days. It is similar to, and sometimes referred to as, the "Lifetime Maximum Benefit". The most commonly offered Benefit Periods are 3 years, 5 years, or Lifetime/Unlimited. A 3-year Benefit Period means that if you use up all your Daily Benefit each day, your policy would run out of benefits after you've been on claim for 3 years. A Lifetime/Unlimited Benefit Period means that the policy could never run out of benefit.

Elimination Period:

This is similar to a deductible and is called the "Elimination Period". It is the number of days that you receive qualified care before the policy will start to pay benefits. As with any insurance policy, the higher the deductible, the lower your premium. The most common Elimination Periods that are offered are 30, 60, or 90 days.

Levels of Care:

1. Custodial
2. Intermediate
3. Skilled

You should be able to receive skilled, intermediate or custodial care. Skilled care, for example, is the highest level an individual can receive outside of hospital confinement and requires constant medical attention from licensed medical professionals under a physician's supervision. Intermediate care, which is handled by a licensed practical nurse, involves occasional nursing and rehabilitative care. Custodial care is the lowest level of care. It is non-medical care that helps with individuals with the activities of daily living, preparation of food, administration of medication and household chores.

Avoid Polices with a Company Requirement:

Make sure your policy does not require hospitalization before benefits are paid. Preferred policies will require the insured to be unable to do two of the "activities of daily living" rather than rely on a "medically necessary" standard.

Select Highly-rated Policies:

Financial strength is important, helping determine the insurers' long-term survival and whether they can pay future claims. Look for a company that has an "A%2B" rating from A.M. Best Co. and a triple "A" rating from at least one other service. Policies from the same insurer vary from state to state, so verify the information is appropriate for your particular region.

Front End Underwriting:

Front end underwriting requires an attending physician's statement at the time of application and can help protect against claim denial due to underwriter mistakes. Expect the procedure to take up to a month and a half.

Guaranteed Renewable:

Guaranteed renewable means the insurance company cannot drop the policy unless you skip payment, but premiums can be raised for all policyholders within a particular group

These are just some options to consider when evaluating long-term care insurance policies. Long-term care insurance is more complicated than life insurance or health insurance, so it's best to consult with a Long-Term care insurance specialist.

Long Term Care Insurance - A Matter of Timing

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A reader recently sent us an email as a result of reading one of our blog posts. He said Baby Boomers need to be aware of a couple of important issues regarding long term care insurance and the application process:

It is easier to qualify and less expensive if the application can be made prior to age 60, at which point, the cost increases significantly. The strength of the company issuing the policy is important. Companies are rated by Standard & Poor, Moody, AMBest, & Fitch.

Information like this is not always readily available. Taking a look at the details is warranted. Applying for long-term care insurance (LTC) prior to the age of 60 make sense in two arenas:

(1) The cost in terms of monthly or annual premiums is less because you ostensibly will be paying for the insurance over a longer period of time and can therefore get the plan at a lower cost.Actuarial tables have these probabilities all figured out. We just reduced the language to what most of us can understand. It is a win-win. You get LTC coverage and the insurance company has a greater probability of not losing money on you.

(2) Qualifications for LTC are a little daunting, but not impossible. Companies issuing LTC policies take a very close look at your past medical records. They also take a close look at your current health, and then they decide if you are a good risk or not. What this means is that, the younger you are, the more likely you are to be in good health and not have too many blemishes on your medical records. The older you are, the more likely you are dealing with health issues, and may prevent you from qualifying for LTC insurance.

So for those of you not yet 60, we highly recommend looking at LTC insurance plans. Search the internet. Compare plans. Talk with trusted advisors. And then decide what is right for you. For those of you over 60 and without a plan, it is not hopeless. But the longer you wait, the more it will cost and the more difficult it will be to qualify.

Long-Term Care - Who Will Look After You?

2008-08-20T21:56:00.000-07:00

The long-term care crisis is upon us. States are encouraging private citizens to purchase long-term care insurance to take the burden off the government. The government is already having trouble paying the cost of long-term care for the indigent elderly. The Partnership programs continue to develop ways to educate consumers on the risks associated with long-term care. Many states participate in the "{Own Your Future" campaign throughout the states. The emphasis is on the importance of planning for long-term care in order to prevent future dependency on state public assistance programs.

As we the emphasis on Long-term care planning, this is definitely NOT as issue just for older people, In fact, once you face the issue of needing care, it's too late to plan. No one like thinking about needing help to do basic activities of daily living-things such as dressing, or bathing, toileting or feeding yourself. Or your parents or spouse.

This is no time for denial or procrastination. Too often long-term care planning is put off until a health issue comes, is now is your medical record and you no longer quality for that "good health discount." Let's hope you are not disqualified from purchasing long-term care insurance entirely.

The good news is that we are all living longer. The flip side to that is it costs more. If you need daily personal care today, it cost about $7000.00 a month depending upon where you live in the United States. The cost of care is sure to rise faster than the rate of inflation as demand for care rises. With all the baby boomers reaching retirement, who will provide this care especially if immigration is restricted?

So, how will you pay for this care for yourself when you'll need it or for your parents in the coming years? Did your parents put a long-term plan in place so that they would not be a burden to you and your family? Will they be occupying the bedroom vacated by your child who just graduated from college? If this scenario looks familiar, you are part of the "sandwich generation." Having your parents in your home will look like a far better alternative for care than a ward in a Medicaid (Medi-Cal in California) funded nursing home. Medicaid or Medi-Cal is the welfare program that promises to pay for care-and it does so primarily in nursing home.

The choices you have for paying for long-term care are:

1. Paying for care out of your savings and assets

2. Purchase long-term care insurance

3. Qualify for Welfare

Long-Term Care Insurance Policies Pay Benefits

2008-08-20T21:55:00.000-07:00

The long-term care insurance industry paid out $3.5 billion in benefits to individuals holding long-term care insurance policies in 2007 according to a study released by the American Association for Long-Term Care Insurance. Approximately, 180,000 Americans received benefits. The AALTCI compiled the data from over 60 long-term care insurers who represent 98 percent of all policies currently in force. This is the first time the total number of individuals on claim was gathered.

The risk is higher of needing long-term care than the risk of a serious car accident or house fire. Baby boomers as part of the "sandwich generation" are beginning to understand the importance of planning for long-term care needs. Long-term care insurance isn't nursing home insurance.

The Association's (AALTCI) study of claims for 2007 showed that 43.0 percent were attributed to home care. 32.9 percent of claims were for assisted living and 24.1 percent covered home care. It also found that the individuals receiving benefits are older. 32.3 percent receiving benefits are between 70-79, 55.2 percent are between 80 or over, but 11.5 percent were for those between 50-69. The youngest individual on claim was 23.

Retirement planning needs to include long-term care planning because unless an individual is guaranteed through group long-term care insurance, you will need to health-qualify for coverage. That's why it is important to start planning when individuals are in their 50's. An individual is far more likely to qualify for significant good health discounts when they are in their 50's than if they wait to purchase coverage in their 60's.

The five most common reasons for a long-term care insurance claim, according to the Association, are Alzheimer's disease, stroke, arthritis, circulatory issues or injury. Fifty-one percent of American children and adults are regularly taking one or more prescription drugs for a chronic condition, typically for problems linked to heart disease, obesity and diabetes according to a recent survey conducted by Medco Health Solutions.

According to the Association, after looking at the records of major insurance companies and 250,000 consumers, it found that 22.9 percent of those 60-69 were turned down for a policy. In your 50's, only 14 percent were rejected. Yes, it's true you will be paying for the policy for more years, but at a lower premium. But at least you'll qualify and have a policy.

In conclusion, we can't predict our future. Medical advances are increasing as well as our life span which means that most of us can expect a longer life than our parents. This increases the likelihood that we will need some kind of long-term care. So, don't put off this very important aspect of your financial plan. Consult with a Long-Term Care Specialist to find out what the best plan is for you and your family.

Group-Term Life Insurance

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Total amount of coverage

IRC section 79 provides an exclusion for the first $ 50000 group term life insurance coverage under a policy carried directly or indirectly by an employer. There are no tax consequences if the total amount of these policies does not exceed $ 50000. The imputed cost of coverage in excess of $ 50000 be included in income, using the IRS Premium table, and are subject to social security and Medicare taxes.

Developed directly or indirectly by the employer

A fringe benefit tax is raised whether the coverage is more than $ 50000 and politics is seen as led directly or indirectly by the employer. A policy is considered led directly or indirectly by the employer if:

1. The employer pays any cost of life insurance, or
2. The employer arranges for the payment of premiums and premiums paid by at least one employee subsidize those paid by at least another employee (the "straddle" rule).

The determination of whether the charges combined premium costs se basa en el IRS Schedule Premium rates, not the actual cost.

Because the employer is affecting the premium cost through its grant and / or redistribution of paper, there is a benefit to employees. This benefit is taxable, even if workers are paying the full cost they are charged. You must calculate the taxable portion of premiums for coverage that exceeds $ 50000.

No leads directly or indirectly by the employer

A policy that does not consider itself led directly or indirectly by the employer has no tax consequences for the worker. Because the employees are paying the cost and the employer is not redistribute the cost of premiums through an insurance system, the employer has no reporting requirements.

Example 1 - All employees of employers X are in the 40 to 44 years old. According to the IRS Premium table, the cost per thousand is .10. The employer pays the full cost of insurance. If at least one employee is charged more than .10 per thousand of coverage, and at least one is responsible for less than .10, coverage is considered executed by the employer. Therefore, every employee is subject to social security and Medicare tax on the cost of coverage over $ 50000.

Example 2 - The facts are the same as Example 1, except for all employees, pay the same rate, which is set by the third party insurer. The employer pays nothing toward the coast. Therefore there is no taxable income of workers. No matter what the rate is, as the employer does not subsidize the cost or redistribute it among employees.

The coverage provided by more than one insurer

Generally, if there is more than a policy of the same insurance coverage to employees, a combined test is used to determine if it leads directly or indirectly by the employer. However, the regulation provides exceptions that allow policies to be analysed separately if the costs and coverage can be clearly allocated between the two policies. See Regulation 1.79 for more information.

If coverage is provided by more than one insurer, each policy must be tested separately to determine whether it is directly or indirectly by the employer.

Coverage for Spouse and Dependent

The cost of employer-provided group term life insurance in the life of an employee's spouse or dependent, paid by the employer, is not taxable to the employee, if the face amount of coverage does not exceed $ 2000. This coverage is excluded as a de minimis fringe benefit.

Whether the expected benefit is considered de minimis depends on all the facts and circumstances. In some cases, an amount greater than $ 2000 of coverage can be considered a de minimis benefit. See Notice 89-110 for more information.

If a portion of the coverage of a spouse or dependent is taxable, the same table is used as a premium for the employee. The total amount is taxable, not just the amount that exceeds $ 2000.

Example 3 - A 47-year-old employee receives $ 40000 coverage per year under a policy carried directly or indirectly by his employer. She is also entitled to $ 100000 optional insurance at their own expense. This amount is also considered executed by the employer. The cost of 10000 U.S. dollars of this amount is excluded, the cost of the remaining $ 90000 is included in income. If the optional policy are not considered by the employer, none of the $ 100000 coverage will be included in income.

Choosing the Right Long Term Care Insurance Policy

2008-07-16T08:31:00.001-07:00

First of all, you should begin considering coverage at the earliest possible age. Most LTC providers only underwrite people who are between the ages of 40 and 80 and who don't already have impairment to their ability to perform at least five of the six basic Activities of Daily Living, or ADLs. So if you are at least 40 and healthy right now, the time is now to consider buying LTC insurance, as the younger you are when you take out a given policy the greater your amount of options and the lower your premiums.

If you are now considering LTC insurance, it's important for you to know the features and benefits you want to possibly pay for.

First, consider how comprehensive you want the LTC coverage to be, as this will affect your premiums. For instance, do you want to just cover going into a nursing home, or just home-based health care provided by a nurse, or just adult day care, or a mixture of them all?

Another factor that will affect your premiums is how much daily or monthly coverage you want. The more coverage you select the higher your premiums, but remember if you do need to activate the policy and your future costs are greater than the limit you have selected you will be directly responsible for making up the difference to the health care providers. Also consider whether or not you want a lifetime cap or unlimited lifetime coverage in sum total insurance policy payouts, based on the options available to you based on your age at the time of application.

Another factor to take into account is the benefit period. Most policies offer benefit period limits of anywhere from two to six years, but you can also pay to have a lifetime benefit period. Along with this, you'll have to consider the duration of the elimination period (analogous to the "deductible" on other types of insurance). During the elimination period ALL accrued medical expenses that the LTC policy covers are paid out of your pocket. It is possible to have a zero-day elimination period, but your premiums will be quite high for this. Most policy providers' elimination periods won't exceed 100 days.

The longer this period the lower your premiums, all other things being equal, so this is one area where you can save quite a bit of money on premiums if you are relatively young, as you can reasonably expect to have enough money saved and invested in the future to finance one of the longer elimination period options should the need arise.

Also ask the insurance agent about an inflation protection feature. This will be very important especially if you are younger, what with health care costs constantly on the rise. Imagine what would happen to you if you selected a comprehensive coverage limit of $100 per day and 20 years from now you need to use the insurance but that same amount of medical care now costs $1000 per day!

Finally, one thing in an LTC policy that can substantially raise your premiums (even double them) BUT be extremely important is called the Non-Forfeiture Benefit. This feature will allow you to continue receiving the policy's benefits even if you stop paying the premiums. If you are severely debilitated or financially destitute from paying your part of the medical expenses and aren't able to pay the premiums in the future, this benefit could literally save your life or prevent your children from going bankrupt taking care of you.

What is Long Term Care Insurance

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LTC insurance payouts are based around the inability of an individual to engage without assistance in six basic Activities of Daily Living, or ADLs: eating, bathing, dressing, using the bathroom, being ambulatory, and continence. An individual's ability (or lack of it) to perform ADLs is important for determining what type of long-term care insurance she'll need. Most of the time, when someone can't perform two or more of the ADLs, they'll be deemed to need some kind of professional long-term care.

The reason that LTC insurance policies began to be developed in the last 20 years is due to two factors. First of all, long-term care is usually extremely expensive. The average cost for one person to stay in a nursing home for one year in the United States is $80,000. In-home custodial care can still cost in excess of $10,000 annually. Secondly, nearly half of all Americans over the age of 65 will sooner or later need LTC, typically nursing home care. Although over half of that number will only stay in the nursing home for less than a year, nearly 25% will be there for a long time (more than a year).

LTC insurance policies are often likened to a "pot of dollars", and this pot has its limits. The LTC policy will cover only a specific dollar amount for each day the insured individual resides in a nursing facility, or it will finance a certain amount for each custodial home care visit, and depending on what amount of premiums you can or are willing to pay there may be a "lifetime limit" on how much the policy will pay out as a grand total. This is why when you are considering an LTC insurance policy you need to read the policy's terms, conditions, and limitations carefully and compare the benefits to determine which policy will best address your personal circumstances.

Most LTC insurance providers do offer policies that can also provide some financing for "alternative care", such as the need to build a wheelchair ramp for one's home.

It's important therefore to realize that LTC insurance is not the same thing as health insurance. LTC policies only cover very specific circumstances. For instance, if an individual needs prescription medications but can perform five or all six of the ADLs, LTC insurance is not going to pick up the prescription tab.

Most LTC policies can't be underwritten on people under the age of 40, and likewise most insurers don't offer LTC policies to people who are already 80 or older. As with all insurance, the younger you are when you take out the coverage the lower your premiums for a given policy. And, as with all insurance policies, pre-existing medical conditions won't be covered and if you are already debilitated enough that you need LTC you won't be able to get the insurance.

Insurance professionals call the tendency of people who already have something wrong with them to then seek insurance coverage "adverse selection", and were they to cover this they would all be put out of business. Insurance policies by their definition have to be in place PRIOR TO their being needed, and long-term care insurance is no exception.

Top 7 Tips For How to Find the Best Long Term Health Care Insurance Plan in South Florida

2008-07-16T08:30:00.001-07:00

How to find the best long term health care insurance in South Florida is vital for people in the area in know, because South Florida is a very popular retirement area and demand for long term health care is higher there than in many parts of the country. By understanding how to find the best long term health care insurance in South Florida, you will be confident in having made a good choice for your future. Because 50% or more of us will need long term care, it is incredibly important to learn how to find the best long term health care insurance in South Florida and other areas.

Top 7 Tips For How To Find The Best Long Term Health Care Insurance In South Florida

1. Shop around and get several quotes. Then compare them carefully. Because there is no standard policy for long term care insurance, coverage and prices can vary greatly from one company to another.

2. Check the flexibility of the plan, you want the policy to be able to cover whatever type of long term care you choose, including home health care.

3. Check the financial stability of the companies you are seriously considering. You want the one you choose to be very stable, so that they are still around to pay benefits when you need them. The likelihood is high that you will be paying premiums for a very long time before you need to use them.

4. Check how often the companies you are considering have raised their premiums. Rate hikes can only be done across the board, but if the company does them too often, you may be priced out of the product you've invested in.

5. Learn how the company determines eligibility benefits. It should be by certain triggers or your doctor's recommendations.

6. Check the customer service record and complaints record of the company you are planning to business with.

7. Ask friends, family members and financial advisors for recommendations.

Long-Term Care Insurance - Are Policies That Combine Life and Long-Term Care Insurance a Good Value?

2008-07-16T08:29:00.000-07:00

The answer to this question is a resounding NO. These insurance policies are referred to by different names, Including "Combination Policies," "Bundled Policies," or "Accelerated Death Benefit Policies."

The policy is usually a life insurance policy with an LTC insurance rider that can be used to pay for long-term care expenses. In other words, instead of having to die to receive benefits, the policy could pay benefits to cover the cost of the policyholder's long-term care expenses.

These policies are sold as a "gimmick" to people who refuse to pay for insurance coverage they may never use. The sales pitch emphasizes that the policyholder can own insurance coverage, and always be assured that a benefit will be paid. The agent tells the prospective buyer: "If long-term care is not needed, at least your beneficiary will receive benefits from the life insurance portion of the policy.

The sales pitch is enticing and the agent can make it seem so simple. But don't be fooled into believing you are getting something for free- insurance companies do not "give away" insurance. With this type of policy, you are actually paying for two types of insurance coverage, whether you need both types or not: life insurance and long-term care insurance. If you use the long-term care portion of the coverage, the life insurance coverage is reduced proportionately.

For example, if you bought a $100,000 life insurance policy with an LTC insurance rider, and then collected $75,000 for long-term care expenses, your beneficiary would collect only $25,000 at your death. But you've paid a premium for $100,000 in life insurance benefits, as well as a premium for the long-term care insurance benefit.

Ask your financial professional to advise you on each of your insurance needs separately. If life insurance is appropriate, then purchase the best life insurance value for your particular situation. If it's not appropriate, then don't purchase it at all. The same is true with LTC insurance. If it's appropriate, purchase the best value for your situation. And if it's not appropriate, don't purchase it at all. Never bundle one type of insurance coverage with another.

Why Do You need Life Insurance?

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Long Term Care Insurance Tax Advantages

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Long Term Care Insurance is one of the most valued insurance plans in the market in today's society. Certain types of long term care insurance policies also have some very nice tax advantages. With more and more people trying to purchase Long Term Care Insurance to protect themselves in the late part of their lives, the demand for this type of insurance has gone sky rocketing high. Long Term Care is usually referred to as Nursing Home Care or extreme Rehabilitation Care after an accident or in case of an illness.

Some of the most common reasons for Long Term Care Include aging, car accidents, diseases, illnesses and dementia symptoms. Nowadays with the cost of the health industry rising, the need for Long Term Care Insurance is very important because an accident can happen to anyone, in any place, at any time.

It is estimated that a single year in a retirement community can cost as much as $50,000 and cost for more luxurious nursing homes can reach up to $100,000 a year!! Rehabilitation centers are much more expensive because they need doctors available at all times and specialists that can treat certain patients with specific needs. Home care can also qualify for a type of Long Term Care since the patient will need some sort of person watching over him/her at all times and they would be spending money; not to mention they might need equipment to take home depending on the severity of the case.

Tax Qualified is one of the two types of Long Term Care Insurance and in fact it is the one that is most used today. This might be due to the fact that Non-Tax Qualified insurance gave money away too easily without asking for anything in return from the policyholder. It was more than likely because of that reason that insurance agencies started putting requirements in order to receive the Long Term Care Insurance reimbursement. Like all the other coverage in any other type of insurance, this system has some advantages and some disadvantages.

Some of the advantages that the Tax Qualified (or TQ plan) are that for tax purposes these kind of insurance is treated like accident insurance or health insurance. This means that Tax Qualified Long Term Care Insurance premiums are concerned to be a medical expense; hence the premiums are based on the policyholder's age and inflation. The younger the owner of the policy, the less he will be able to deduct from his taxes. Another good thing to note is that no benefits you receive from the Long Term Care Insurance can be taxed.

Some of the disadvantages about the Tax Qualified type of Long Term Care Insurance are that there are some requirements before the insurance company actually pays the policyholder any money. By being qualified this means that the policies are conformed to the 1996 Health Insurance Portability and Accountability Act (HIPA). Under this kind of Tax Qualified plan you are required that your Primary Care Physician (PCP) or one of the company's doctors certify that you are unable to perform two activities of daily living such as bathing, dressing, eating, transferring, etc for a period of at least 90 days. Also, the Doctor that checks to see the things mentioned above will have to give the patient a Plan of Care in order for the person to get any benefits. Keep in mind that you can also be eligible for benefits if you require substantial supervision to protect yourself due to a severe illness.

One of the most important things to understand is that a Tax Qualified policy as mentioned above is considered to be like a health insurance policy. This means that you would be able to itemize your deductions. To be more specific, if your total medical expenses exceed 7.5% of your adjusted gross annual income; you can write-off your deductions. Unfortunately, most policy holders do not exceed that 7.5 % that would allow them to take this deduction.

Illinois Long Term Care Insurance - Do You Need an Illinois Long Term Care Insurance Policy?

2008-06-27T06:27:00.000-07:00

It is very important for all residents of Illinois to evaluate their needs for an Illinois long term care insurance policy. All adult residents of Illinois, both young and old, should seriously research this important type of insurance coverage if they do not want to have to unduly burden their loved ones in the event of a debilitating disease, go into bankruptcy due to medical bills, or worse. Finding long term care insurance is a serious issue but there are certainly some things that all IL residents can do to find a cheap Illinois long term care insurance policy.

The state of Illinois is one of the biggest states in the continental United States. Holding an estimated 12,831,970 people and with about 12 percent of that population over the age of 65 years old; Illinois is a state big on Long Term Care Insurance. With the expenses of health care rising in America, is more and more common for people to purchase this kind of health care that can protect them in the future if any medical expenses arise.

The concept of Long Term Care Insurance is still not being used that much in the United States because people don't know about it, or they simply just don't understand it. People that already have health insurance and are elected to receive Medicaid after they turn 65 usually don't worry about anything, thinking that their whole health care life is covered. It is here where Long Term Insurance comes into effect, when the type of care a person is receiving is not covered by their Health Insurance Company, Medicaid or Medicare.

Long Term Care Insurance can be used by anyone at any particular time. Some examples of people that might need it would be a disables person that will need assistance for life doing the daily living activities that a healthy person can do by themselves. Also, a person recuperating from any accident can be covered for the amount of time necessary until they are completely healed. It is important to mention however, that age is not related to more cases of long term care required. In the United States it is estimated that about 40 percent of Long Term Care Insurance patients are people between the ages of 18 and 64.

The state of Illinois takes Long Term Care Insurance for people over the age of 65 very seriously. Online you can find information about one of the most important resources about Long Term Care Insurance, the Illinois Department on Aging website. This website promotes the famous Long Term Care Ombudsman Program regulated by the Federal Older Americans Act and the Illinois Act on Aging. This program provides the fair and equal treatment of every Illinois resident over the age of 65, living in any Long Term Care facility (nursing home). The state government through this program will inform nursing home residents and their families of their rights, resolve nursing home complaints promptly, provide information for the resident needs and advocate for excellent nursing home and individual care.

Every resident of the state of Illinois residing in a nursing home, or a family member of a person residing in a nursing home is eligible to apply. A main benefit for people that have Long Term Care Insurance is that it will cover for a caregiver, a house companion and for people who suffer from Alzheimer's disease, Parkinson's disease or any other type of dementia.

A thing of note is that many young people think that Alzheimer's and Parkinson's only affect the old population; this however is not completely true. An example that shows Parkinson's can happen at any age is that of Michael J Fox, who was diagnosed with the disease at the age of 30.

The cost of Illinois Long Term Care Insurance can be very high or very low depending on the services you want and the amount of time you will need care. Costs in a nursing home can range from $50,000 a year and sometimes it can easily be twice as that. When the time comes for a person to use the services he/she purchased they will be in charge of paying the bills, but they will be reimbursed by Medicare and by their Long Term Care Insurance Company. There are two main types of Long Term Care Insurance available in Illinois:

NTQ: This acronym stands for Not-Tax Qualified Long Term Insurance which has been sold for over 30 years. This type of Long Term Care Insurance generally has a "medical trigger" which says that the patient's doctor or a doctor in conjunction with the insurance company will state that the patient needs long term medical care. The benefits under this type are taxable.

TQ: This stands for Tax Qualified Long Term Insurance. Unlike the Non-tax Qualified the Tax Qualified type does not need a medical trigger and it required a person to have at least 90 days of care and to not be able to perform two of the daily activities such as bathing, dressing, eating, etc; in order for a person to receive a Plan of Care from their doctor.

The state of Illinois also has a program called the Illinois Council on Long Term Care. The council's main job is basically to give Illinois' residents that want information on Long Term Rehabilitation Centers or Nursing Homes near their area. Although Medicare pays for a portion of the costs of Rehabilitation Centers and Nursing Homes, the Long Term Care Insurance can help pay for the rest of the bill that is not covered by Medicare.

Long-Term Care Insurance - Will DNA Testing Affect the Ability to Get LTC Insurance?

2008-06-27T06:26:00.000-07:00

I recently considered whether or not I should have DNA testing done to learn whether or not I'm destined to develop Parkinson's Disease which seems to run in my family. I figured it was an issue I would broach with my doctor at my next annual physical.

But a few days before before the appointment, I woke up in the middle of the night and had second thoughts. What would be the implications of the knowledge of ones genetic predisposition to some condition? Could my health insurance contract be deemed "invalid" since I had this predisposition at the time of application? Could this sort of knowledge affect my children's ability to become employed?

As far fetched as these scenarios seemed, I decided to postpone any discussion of DNA testing with my doctor. To me, the benefits of knowing just don't outweigh the unknown consequences at this point in time.

A recent article in the NY Times addressed this very issue ."...And even doctors who recommend DNA testing to their patients warn them that they could face genetic discrimination from employers or insurers." Although there are few examples of actual discrimination based on genetic testing, I'm not alone in my concerns. According to reports, the consensus is that most people are fearful of having their genetic "roadmap" laid out for all to see.

As an LTC Planning and Insurance expert, I also naturally began to wonder about the implications of genetic testing in regard to long-term care insurance underwriting. While testing of this sort is not currently being done, what if it were to become routine and insurance companies began to test for genetic predisposition to conditions that require extended periods of care, such as Parkinson's Disease or Alzheimer's Disease? Could people be denied coverage based on their genetic make-up?

Long Term Care - What Kind Of Insurance Policy Covers This?

2008-06-27T06:22:00.000-07:00

If you ever need long term care, what would you do? Do any of your current insurance policies cover long term care? This article will explore this and make some recommendations.

To the question again: Does any of my current insurance policies cover long term care? The answer is an emphatic NO! That is unless you have a long term care insurance policy. To make this clear I'll explain what qualifies as long term care...

Long term care refers to non-medical care that includes rehabilitative, nursing and social services for very sick or disabled people. Although anyone can have need of long term care due to a variety of reasons, it's usually mostly needed by the elderly. It could also be defined as special care for people who cannot help themselves in daily activities like eating, dressing, bathing and so on.

Now that we understand what we really mean by long term care, check your health insurance policy (I mean the fine print) and see if it covers the issues mentioned in the definition. It doesn't. Medicare and Medigap also don't cover it.

But doesn't Medicaid cover long term care? It does but only if you're poor enough to qualify for it. You'll have to lose a lot of your assets and investments before you can qualify for it. Believe me, unless you are really poor, you don't want to use Medicaid.

Now that you know that none of your current polices cover long term care, take some time out to get the only insurance policy that covers it: A long term care insurance policy.

I know that the extra cost is something you really are not happy about. But, there's a way out: Get and compare quotes on all your existing policies. You can save several hundreds or even a few thousand dollars. You can now plow back what you've saved into long term care insurance. Repeat the process for long term care insurance.

Make out some time to visit at least three insurance quotes sites that return quotes on long term care insurance policies. Using at least three quotes sites increase the chances that you'd obtain more quotes.

This offers you a broader basis for doing more extensive comparisons thereby increasing your chances of better quotes. Requesting for your insurance quotes online will help you save much more if you invest around 15 minutes to obtain quotes from at least three sites.

Long Term Care Insurance - An Easier Way To Pay

2007-09-27T21:03:00.001-07:00

Anybody who is not ignorant of insurance needs knows the value of long term care insurance and when it becomes necessary. However, it's an additional expense and a big one for that matter. You don't want to even imagine the greater pains that could result if you don't have it and then end up needing long term care. Here's a way to pay easily...
This strategy assumes that you have other insurance policies like home, auto, life and health. For those who fit the bill, here's how to do it.
Get ready to spend a some time to do some in-depth research. We'll use insurance quotes sites as resources. You'll have to visit up to five quotes sites (but not less than three). Your progress will be slower if you don't have all your details ready. It, therefore, makes a lot of sense that you get them.
Now, begin to request quotes for each of your current policies: Auto, health, home, life insurance and any other. You'll see high quotes and you'll see low quotes from different insurance companies. Take note of the lowest rates offered for each of your policies and see if they do not compromise you.
The lowest quote that does not cut off features of importance to you represents what you should be paying. Subtract what you're paying currently to see how much you've saved. Do this for each of the other policies in turn. The grand total represents your total savings if you switch to those insurers.
What you save will depend on a number of factors. But someone was able to save over $2,500 on just one insurance policy (his auto insurance policy).
You'd only have to add a little sum in the event that the total savings made on all your insurance polices aren't enough to pay for your long term care insurance policy. The probability that this will be the case is higher if you have fewer insurance policies and less extensive coverage.
You can find out now whether what you'll save will be enough to pay for a long term insurance policy. Even if it can't pay for your long term care insurance entirely, it's still savings for you.

Long Term Care Insurance - Benefits, Waiting Period and Lower Rates

2007-09-27T21:02:00.002-07:00

It's important that you get a few things clear as you shop for long term care insurance. The very best long term care insurance quote is that which combines great features and an affordable price. Here are some things you must take seriously if you want to get very affordable long term care insurance rates that won't compromise you...
1) Find out the terms on which they pay out their benefits. It's very important that you find out what they pay per day in different situations. What do they pay, for example, per day in a nursing home? Know what it will be if it happens to be assisted living instead. Do they have maximum lifetime limits? If so, what are they? Make sure you understand this area very well because that's what you'll get if you ever need long term care.
2) Think carefully about the waiting period you choose. To make sure we're all on the same plate, it refers to the length of time an insured would have to wait before getting benefits from the insurer calculated from when they start needing long term care. Usually a policy holder can choose from any length of days between zero and 180 days.
If you want to pay lower rates, choose a longer waiting period. While you do this, remember that these are the number of days you'll pay for long term care out of your own pocket.
The most tried and tested way of getting the best long term care insurance rate remains getting and comparing quotes from as many as 5 quotes sites (Three would be the minimum I recommend). If you're over 50, it's highly advised that you start shopping for long term care insurance now. A good way to start is by getting long term care insurance quotes from reputable insurance quotes sites.

Financing Long Term Care

2007-09-27T21:02:00.001-07:00

It is a well known fact that health insurance is expensive, especially when you take into consideration all of the health insurance products that you need during your lifetime. One of the latest health insurance products to be introduced to the market is long term care insurance. This insurance is designed to cover your long term care costs like nursing home care, home health care, respite care and adult day care.
The Cost of Long Term Care Insurance
It is inevitable that most adults will need some form of long term care during their life either because of aging issues and conditions or early to mid life accidents and conditions. In order to cover the costs associated with long term care you will either need to have substantial savings, or you will need long term care insurance. However, wanting long term care insurance and being able to afford it are two completely different things. This is because long term care insurance premiums can range any where from several hundred dollars a year to several thousands of dollars a year.
Long Term Care Options
While nursing homes and in home care are two viable options. They are expensive options that some people simply cannot afford. For these people family members, friends and church or synagogue volunteers cover offer the care that they need. For those who don't have a support team that can care for them when they need long term care, Medicaid and Medicare pick up slack, to a point. These health insurance programs cover long term care, to a point.
Financing Your Long Term Care
There are several ways that you can fund your long term care. Your first financing option is to dip into your savings. However, with the average cost of a nursing home stay ranging between $130 and $450 a day, your savings are going to be eaten up quickly.
Your second financing option is to liquidate your assets. Real estate, stocks and bonds, jewelry and other possessions can be sold to cover your long term care expenses.
Government health insurance programs like Medicare and Medicaid can also be used to finance, at least a portion of your long term care needs. However, for most people these government sponsored programs are not going to be adequate to cover all of their long term, or extended care needs.
Your final option is to use a long term care insurance to finance your long term care expenses. There are dozens of ltc insurance programs that you can select from. To get the most for your money you will want to shop around and look for a policy that is offered by a financially stable company, that offers reasonable premiums and that offers the type of coverage that you want and need.

Florida Long Term Care Insurance - Why You Can Pay Far Less

2007-09-27T21:01:00.002-07:00

There are many things on which you could spend much more for much less simply due to the fact that you are unaware of relevant information. Florida long term care insurance is one of such. You could be billed $1000 and more due to where you obtained your Florida long term care insurance rate from. Statements like this could be quickly dismissed as false. Nonetheless, I recommend you go through this piece to confirm if I'm correct...
The risk that an insurer envisages in giving you coverage is what determines what you receive as your Florida long term care insurance quote. In order to calculate your risk level, they make use of several factors. In spite of the fact that these factors are normally the same from one insurance company to another, the weighting each insurer gives each factor varies.
It's like asking, say, 100 people to score different people using 20 different factors. You can be sure that no two of such people will score a group exactly the same. That's about what also happens in long term care insurance. Each insurer's opinion of how risky you are to them determines what they give as quotes. This results in a huge disparity in scores and eventually the quotes returned. This disparity in their rating of these parameters is what lets you make big savings.
It is easy for you to assume that any Florida long term care insurance will do -- And you won't be wrong. The only issue here is that what you might pay may be hundreds of dollars above what you would have being quoted by another top quality insurer.
Please, get something straight. In searching for savings you have to ensure that you also get all you desire in a Florida long term care insurance policy. Anything less may be useless. The main thrust of all I am saying is getting the right coverage for you at the best price possible. If you pay a low premium for Florida long term care insurance that doesn't really give you the kind of coverage you really should get, you are paying a high price. My point in this article is settling for what covers you well at the lowest price you can get.

Affordable Long Term Care Insurance - Quickly But Safely

2007-09-27T21:01:00.001-07:00

You can get affordable long term care insurance if you obtain and compare quotes from insurance quotes sites. Requesting quotes from a minimum of three quotes sites increase the chances that you would get bigger savings. This is because insurance companies not covered by one site would be covered by another. And since the likelihood of receiving lower long term care insurance quotes has to do with the number of quotes you get, the more insurance companies you obtain quotes from, the brighter your chances. This increases your chances of receiving better offers.
Do you know that getting your long term care insurance quotes online automatically brings in some savings? You help insurance companies lower the cost of getting new clients by getting your long term care insurance quotes online. This works to your benefit in lower long term care insurance quotes.
Apart from the fact that you'll get the best quotes online, it's also fast and easier. In only a few minutes you can get a number of quotes. This means that you'll get more savings due to more informed decisions. This is because you will have a wider basis for comparison with many more quotes.
To make it even better, you can do it from your bedroom. All you need is a computer and you're ready to go.
Alls well that ends well they say. Therefore you must know what to do to ensure you do not get taken by wolves...
Take some time out to check out the company you intend to buy long term care insurance from. Do NOT make the mistake of signing up with an insurer without checking their reputation. You can visit (online) your state's Department of Insurance to find out an insurer's rating. You'll know if they are even licensed to sell long term care insurance in your state.
And, please make sure you read through and understand policy terms before you sign. Don't allow anyone pressure you into signing such a document without reading through and understanding it thoroughly. Remember, it's your life.

The Basics of Long Term Care Insurance

2007-09-27T21:00:00.002-07:00

Because Long Term Care Insurance is a relatively new product offered by insurance companies, most people don’t know enough about it. For most people, thinking or learning about Long Term Care insurance is not a top priority or at the front of their minds, but as many learn, Long Term Care insurance plays an important role in bringing comfort to their lives knowing the protection it provides.
Long Term Care Insurance - The Basics
Long term care services are provided to people who suffer from a chronic illness, disabling condition, or a cognitive impairment. Generally, long term care is needed for conditions that cannot be cured or healed; instead long term care services focus on helping the patient with routine activities.
These activities are often called Activities of Daily Living (ADL). These include: dressing, ambulating, bathing, continence, toileting, and eating. These activities may be affected not only by physical impairments but chronic mental impairments as well. Consider certain cognitive losses such as Alzheimer’s disease. Often, long term care services extend for a long period of time.
So, Long Term Care Insurance provides benefits in the vent that these services are needed. Generally, Long Term Care insurance policies are flexible in how the insured and their family decide the individual needs to receive care.
Long Term Care insurances helps pay for services such as in-home care, adult day care, alternative living facilities and nursing homes.
Long Term Care Insurance - Considerations
As the cost of health care rises, so do the costs of providing long term care services. The purpose of Long Term Care Insurance is to help pay for the services needed to care for someone to alleviate the financial burden on the family.
One misconception is that people believe that Medicare will pay for these services. As is often the case, they do not provide for much of the care needed, if any at all. The financial and emotional burden of caring for someone then falls onto family members. Again, Long Term Care Insurance is designed to alleviate these burdens.
Long Term Care Insurance - Some Mechanics
Since Long Term Care Insurance is used to provide services for an extended period of time, benefits do not set in until a fixed amount of time has passed. In most cases, you can choose how much time must pass before benefits set in when purchasing your policy. Generally, these are 30, 60, or 90 day periods. The longer the period you select, the less you will pay in premiums.
Another consideration is the dollar amount of daily care the insured is eligible to receive. Some may decide that $100 per day in care and services is enough, while others may decide that $250 per day is right for them. You should consider the costs of health services and what level of care you are comfortable with before purchasing your policy. Often, insurance representatives are very knowledgeable and can help you decide what amount is right for you. Of course, these considerations will affect the premiums you pay for the insurance.
Long Term Care Insurance - Conclusion
Long Term Care Insurance plays an important role in risk management. As health care services rise, the cost of providing long term care to individuals may create a financial and emotional burden on family members. Long Term Care Insurance is a product designed to provide individuals needing extended care for a chronic illness, disabling condition, and/or cognitive impairment.

Long Term Care Insurance - What Smart People Do

2007-09-27T21:00:00.001-07:00

Those who really love their families do their utmost to protect them from needless pains and cares. This is the motivation for buying most insurance policies in the first place. But, for those same people, long term care insurance does seem like a waste. Is that unwise?
Statistics show that of all Americans aged 65 and above, 40% have a 50% chance of needing long term care before they pass on. Apart from the financial involvement, the strain on family members can be great if adequate plans aren't on ground.
Think of it: If the odds that you'll need something are 50 percent, would you be wise to avoid it. The experience of unprepared people who end up needing long term care can be very painful. Almost three out of ten long term care users pay from their own pockets. Close to 40 percent use medicaid.
If you think these are painful statistics, look at this...
Majority of those good people who started paying from their own pockets exhaust their savings, become financially ruined and finally end up using Medicaid as they become poor enough to qualify. It's painful that a little more care would have saved them such great loss.
Having one's dreams shattered at their golden age remains one of the worst nightmares anyone can have. A long term care insurance policy will ensure long term care doesn't steal your dreams.
Hopefully, you won't need it. But then you'll not lose your sleep, dreams or investments whether you eventually use long term care or not.
I know the cost of long term care insurance is often the issue. You can pay for long term care insurance without spending too much if you go over all your existing insurance policies again. Get and compare quotes from three quotes sites for each of them (That is, your auto, health, home, etc) insurance policies.
If you do this well you'll either realize enough savings to pay for long term care insurance without altering your insurance budget or you might just have to add a little extra to pay up.

The Early History of Long Term Care in the United States

2007-09-03T04:36:00.002-07:00

In the United States at the beginning of our country the population was much younger. Life expectancies were less and the immigration into our country was mostly young people and families. A very small percentage of our population was categorized as old age. This category was affected by poor medical care and a much lower standard of living.
Immigration was hazardous and very dangerous. The immigrants who came here voluntarily were poor and hoping for a better life in the new world and the risk was worth the potential rewards. Also many slaves were imported into the new country and only the healthiest and strongest were even considered. This also added to the overall younger population.
Those we did live a longer life expectancy were often dependent on their children and there was almost no old age security blanket other than the charities of church’s which were often modest. The family needed and depended on the care of one another. Due to the need to provide for the family most groups were in rural settings where crops could be grown and livestock could be raised. There was very little industry and only a very small percentage of the population lived in urban areas. The family was the key to survival and many different jobs and occupations were created from farming to butchering to educating the children
The public welfare system in the country was dependent on local assistance and the federal government had no part in it. Many local government established laws to create a system of aid and assistance to the population that evolved into our modern welfare system. This system eventually provided houses for the poor and homes for children which became orphanages. These systems were funded by tax dollars and were often attached with a stigmatism of lower class or the “unworthy.” It also created a system for abuse. Many people presented themselves as “poor” to receive room and board and many parts of the county even used these people as class slaves and were forced to work even though they were medically unable. Abuse was equally shared by both the people and the system.
Poor camps developed and these people roamed the countryside using a local system until authorities moved them along and out of their community. These camps were reminiscent of the “gypsy” movement began in Eastern Europe.
Eventually responsibility was aided by known groups who became responsible for the caring of others. These systems ere occasionally churches and other organizations such as Revolutionary War Veterans of America.
Funds were entrusted to these groups and they accepted responsibility of paying for and providing for members of their organizations. This proved to be a more efficient method of providing assistance and became the early basis of our modern welfare system.
As the tax base increased and the federal government became more dominate the argument between the states and the federal government became greater and more in contrast. Eventually the states accepted control over the system and the federal government agreed to provide some funding although almost all responsibility fell on the states responsibility. One positive move the federal government did was to in 1776 was to authorize pensions for disabled Revolutionary War Veterans. The initial military pension law offered partial pay for the rest of their lives to soldiers who were disabled in the war that they were unable to work for a living. It wasn’t until much later in the history of our country that the federal government asserted its power over the states and gained control over the welfare system.
The history of long term care for those in need changed over the years as a better tax base was established and the interaction between state and federal governments improved. In the 1960’s with the establishment of Medicare and Medicaid newer and better programs became available and more services were offered.

Reasons Why Tax-Qualified LTCI Policies Are Consumer Friendly

2007-09-03T04:36:00.001-07:00

When the long-term care insurance (LTCI) industry was in its early stages, the policy features and design differed considerably from what we have commonly come to see offered to consumers today.
Since it was a relatively new segment of the insurance industry, there was little history that could be drawn from reliable sources regarding pricing, underwriting procedures and policy design. As a result, it was kind of like the old wild west in that each carrier typically had their own unique offerings that could be completely different from other companies in the LTCI field. You can imagine how confusing and difficult to compare those policies were for the average consumer.
A big change took place in 1996 when Congress passed the Health Insurance Portability and Accountability Act (HIPAA). Essentially, Congress recognized that without some federal guidelines the LTCI industry was headed for trouble. So this legislation helped standardize LTCI policies while providing several consumer friendly features at the same time. Their guidelines also helped bring more rate stability to the LTCI marketplace as well.
Here is a short list of some of the outstanding consumer friendly features that can be found in tax-qualified LTCI policies these days:
1. Elimination of a “medical necessity” benefit trigger. Policyholders who had Alzheimer’s or dementia but had no other obvious need for medical care might not qualify for benefits under this kind of benefit trigger. Modern tax-qualified policies generally contain two benefit triggers. The first is for policyholders who need assistance with at least two activities of daily living (ADLs) for at least a period of 90 days. The second is for those who have Alzheimer’s or dementia to the degree that they could be a danger to themselves or others if left alone.
2. Tax-qualified policies must be guaranteed renewable. This means that insurers cannot cancel or refuse to renew a policy because of age, claims history, or health deterioration, provided of course that you continue to pay the required premium. 3. Policies must include an inflation protection option, and insurance agents must offer and explain this option in their presentation.
4. Policies must also include an unintentional lapse provision that permits a policyholder who misses a premium payment because of a cognitive or physical impairment to reinstate the policy up to five months later.
5. HIPAA also established that LTCI insurers must not practice post-claim underwriting. This is a procedure where the policy is awarded with little or no initial underwriting until the first claim is actually made on the policy. This obviously allows too much room for abuse on the part of the insurer to possibly deny coverage by being overly strict on underwriting when the actual claim is made.
These are just a few of the consumer friendly aspects of modern tax-qualified policies. So in addition to their obvious inherent tax benefits these policies also come with many attractive policy design features for modern consumers as well.

The Future of Long Term Care

2007-09-03T04:35:00.002-07:00

The baby boom generation—born between 1946 and 1964—is bearing down on America’s retirement programs like a pre-climate change glacier. More than 78 million strong, the baby boom seems destined to crush every social program in its path. It cannot be stopped. Only a mixture of government and private solutions, such as private long term care insurance, can avert the coming disaster.
Today, with the baby boomers still in the work force, there are 3.3 wage earners for each person collecting Social Security benefits. That number will shrink as the baby boomers retire and begin collecting Social Security benefits. By 2031, there will be only 2.1 wage earners for each Social Security beneficiary.
With the boomers working and paying taxes, the Social Security trust funds are running a surplus. That will continue until 2016. At that point, with half the boomers collecting Social Security, the taxes flowing into the trust funds will not be as great as the expenditures flowing out. At first, nothing will change. Social Security will use the interest earned during the surplus years to pay benefits. By 2041, however, the excess funds will be depleted. Incoming payroll taxes will cover only 75 percent of the costs.
The crisis in long term care will develop more quickly. The U.S. Census Bureau estimates that 72 million boomers will live past age 65. According to the American Association of Homes and Services for the Aging (AAHSA), a nonprofit group that studies elder care, 69 percent of people living past age 64 require some kind of long term care. If the percentage holds, then 49.6 million boomers will need long term care.

A Complex Decision - Will You Need Long-Term Care Insurance?

2007-09-03T04:35:00.001-07:00

Unlike the not-so-distant past, modern seniors no longer live with their extended families. Children can’t afford to take care of their aging parents anymore, and their ill-health can become a financial liability.
Today we have what’s known as Long-Term Care for senior citizens, or persons with a disability, physical illness, or mental impairment. Examples include nursing homes, home health care agencies, retirement communities, assisted living facilities, and adult daycare centers.
Primary healthcare policies will not fully cover these services, and that’s where Long-Term Care Insurance comes into play. Having it when you need it will feel like a blessing for both you and your family.
Will you be in need?
There are a number of factors that make the decision of whether or not to purchase Long-Term Care Insurance a difficult one. First of all, you must purchase it before the insurance is actually needed. This means looking into your family health history and determining whether or not you will require day-to-day custodial care in your later years. Be honest with yourself and with your family.
Many seniors do not want to burden their family members with this difficult decision, but I must emphasize the importance of letting them help you make the right choice. Having your family support your decision makes it a more meaningful one.
Second of all, if you’re reaching the point where Long-Term Care is needed due to the difficulty of daily living, it might already be too challenging and expensive to obtain it.
Long-Term Care Insurance is pricey. It’s cheaper when you buy it at a younger age and in better health, however you pay for a longer amount of time before you receive the benefits of the insurance. Not to mention that premiums will most likely continue to rise, and there’s the threat that you’ll never use the insurance at all.
All of this sounds very negative, and it can feel like a horrible guessing game, however if you already know of a serious medical condition that runs in your family and you’re quite sure you’ll be in need of daily assistance, Long-Term Care Insurance is definitely right for you. It can be one of the most beneficial purchases you’ll ever make; saving your family money, time, and worries, and allowing you to maintain as much of your comfortable, customary life for as long as possible.

Long Term Care Insurance, Guaranteed Premiums and Other Misconceptions

2007-09-03T04:34:00.002-07:00

Most people who buy LTC insurance are not aware about future premium increases. LTC insurance premiums are not guaranteed and may increase with permission from state departments of insurance. The obvious question is have they and will the in the future increase premiums? The answer is yes, they have and many will also increase premiums. Insurance companies can raise rates but only for everyone in the same pool of insured. The company cannot target individual policyholders for special rate increases despite the number of claims someone may make.
Other misconceptions about LTC Insurance:
• Medicare will cover all long term care costs. Not true, Medicare provides very limited options for only 100 days and only after a qualified hospital stay. Medicaid covers long term stays in nursing homes and is considered welfare. • Medicaid will cover all long term care costs and protect my assets is also a false statement. Medicaid will only assist those who have no other financial option. • The earlier you buy LTC insurance the cheaper it is! This is a true statement, but only because the premium is based on age and the younger you buy, the less the premium. However, LTC insurance can increase if approved by the state department of insurance.• Veterans can use the veterans Administration for their LTC needs. The Veterans Administration does assist many veterans but the waiting period for assistance can be years and still doesn’t guarantee a bed. • My family will care for me is also an old concept not practical in today’s society. In many households both spouses need to work to support the family and not often are their assets in place to care for a parent.
Are there options to help me decide which policy to buy? The answer is yes, numerous sources exist and many agencies will help. A solid tip is to ask for the insurance company’s financial rating. The rating service will evaluate the company as to their claims paying ability and their ability to continue into the future. Many times the lowest premium is not the best, always ask for several options form your agent and never feel rushed into a decision. Take your time and make a logical choice based on your personal situation.

Nursing Home Planning

2007-09-03T04:34:00.001-07:00

If you’re 40 years old and healthy, it is very easy and inexpensive to purchase Long-Term-Care Insurance. All of you should purchase it now. Unfortunately, not all of us are so lucky to 40 and healthy. What are those of us that are in our 50’s, 60’s, 70’s and older to do about long-term-care, especially if we have bad health? LTC Insurance is impossible to purchase if we are too old or too diseased. What are those of us to do about paying for long-term-care, when it becomes necessary? I am in that position and have been forced to learn everything possible about this situation in order to be as prepared as I could be. If you are like me, this may be important too you, too.
My research found dozens of government and private sites trying to explain how to pay for LTC. The following items became obvious and verifiable from those websites.
Many seniors find themselves facing nursing home care costing over $50,000 per year. The costs range from just under $50,000 to over $120,000 in more cosmopolitan areas such as New York City. These costs can be devastating for most senior citizens and their families. It seemed obvious that payment of these amounts was eventually going to lead to some sort of govt. program. How many LTC patients or their families were actually going to have the funds with which to pay? Payments were narrowed down to only four possibilities: 1) The family; 2) Medicaid; 3) Veterans programs; or, 4) Long-Term-Care (LTC) Health insurance. Since very few seniors have LTC Health insurance, virtually all nursing home expenses will be paid by Medicaid and/or the family. Veterans of a time of conflict have a special program available to them. I give two sources of information below that helped me the most with the information necessary for Nursing Home (LTC) Planning.
What is Medicaid? Medicaid (Medi-Cal in California) is an entitlement program created by the Social Security Act, Title XIX. It is the primary provider of long-term-care benefits for senior citizens today. Many seniors believe they can look to Medicare to pay for nursing homes. However, Medicare only pays up to 100 days for particular types of long-term-care. Medicaid is often needed after that period is over. Medicaid benefits have become the premier safety net for most seniors. Financial and estate planners should not overlook Medicaid planning to protect and preserve the assets of their senior clients. Some people think it is improper or unethical to use Medicaid. This is not true. The rich rarely use Medicaid to save money. An April, 2006 report titled “Medicaid and the Uninsured,” the Kaiser Family Foundation details that the median amount transferred from a Medicaid recipient to anyone else, including spousal transfers, was less than $2,800. Of course, they also reported there were transfers made for amounts over $200,000 albeit only 5 percent of transfers were above $50,000. They concluded that the transfer of assets in order to gain Medicaid eligibility is grossly over-exaggerated.
Everyone is entitled to the Medicaid program under the right circum¬stances. Proper advance planning is necessary to assure those “right” circumstances and preserve your hard earned as¬sets. Too much of the following as¬sets will keep you from qualifying: cash, stocks, bonds, IRA's, CD's, real estate, cash value life insurance, second homes, etc. A single person is allowed up to $2,000 in cash, a primary residence and per¬sonal items. An at-home spouse is allowed a maximum of $101,640 in cash (Effective 1-1-07), a primary residence and personal items. These amounts may differ from state to state. In most states, the at-home spouse may have either considerable or even unlimited income when structured properly.
In order to qualify, many people choose to “gift” assets away. Assets can¬not be given away within 60 months (currently 30 months in California, 36 months in several other states and 60 months as required by The Deficit Reduction Act of 2005) of qualifying for Medicaid. Before “gifting,” be certain of how the latest changes have affected your State’s Medicaid Rules. Please be certain to obtain necessary legal or professional advice.
When either spouse needs long-term-care, assets that need to be protected can be changed in form e.g. from cash to life insurance (with no cash value); and even a business owned by the LTC patient or in some cases rental income in the LTC patient’s name. Several of these items are next to impossible due to family structure or individual state’s Medicaid provisions.
The in¬come paid out to the at-home spouse is unlim¬ited in some states and limited in others. In the case of the “unlimited in¬come” states, the con¬tri¬bution to the long term care facility by the family would be any retirement income paid in the name of the spouse needing the care, such as social security. In the “limited income” states, when the limit is reached, the remaining income of the at-home spouse, in addition to the income of the spouse needing the care would be the family’s contribution to the care facility. Medicaid would pay the difference, thereby conserving your estate for your spouse or your beneficiary. New rules today regarding reimbursement of the State for any Medicaid expenses are now being adopted in several states.
I have found two websites that seem to be the most knowledgeable about Nursing Home Medicaid Planning. The first is Barry Rahm Insurance. You can reach Barry Rahm at www.barryrahm.com or 800-255-1932. After speaking with Mr. Rahm, he may be the best person I have located (and the easiest with whom to get in touch) in order to answer questions and help to get Medicaid qualified the fastest. The second is Medicaid Asset Protection Plan. They can be contacted at www.medicaidhelp.com or 866-334-2243. They are also extremely knowledgeable and charge $342.00 (including postage for overnight shipping) to get you the information needed for Medicaid Qualification.

Long Term Care Insurance, Guaranteed Premiums and Other Misconceptions

2007-09-02T21:46:00.000-07:00

Nursing Home Planning

2007-09-02T21:45:00.001-07:00

Long Term Care Insurance Policy - A Grievous Mistake To Make

2007-07-31T21:55:00.001-07:00

It's only multimillionaires, those who are so poor already or those who do not have any meaningful assets or investments they want to protect that should be without a long term care insurance policy. If you do not belong to this class, then you could be courting financial ruin. This is especially true if you have a history of diseases that require long term care in your family or if you're fifty plus.
Look at it this way: You've saved $400,000 for your retirement. You have plans to help your children make the down payment on their first home. You plan to help see your first grand child through college. Those are sweet and grand plans. Without a long term care insurance policy, you might as well forget those dreams if your and your spouse have to spend up to two years in a nursing home.
Don't just say "Not me." Statistics show that 40 percent of those who are above sixty-five years old have a 50/50 chance of spending some time in a nursing home. What if...? I think this "what if" is all what a long term care insurance policy is about. You just want to ensure you spend your last years on your own terms and not another's.
What if you wait till you get older before buying a long term care insurance policy? Well, there are big risks of being rejected as uninsurable. Then you'll have only two choices left: Waste your life savings paying for long term care out of your own pockets (and maybe still end up as welfare statistics) or become a burden to your children.
Just know this: About 2 out of every 10 people in their sixties will be rejected but almost 5 out of every 10 people in their seventies will be rejected when they apply for a long term care insurance policy.
The more likely you'll need it soon, the more likely you'll be turned down. Furthermore, your total premium a long term care insurance policy will be much more over the years if you buy when you're older. You save more and reduce your risks the earlier you buy it (But that doesn't mean you should buy it if you're 35 unless your family history indicates you may need it soon).
Make out some time now (Just 15 minutes on the whole) to visit not less than three insurance quotes sites that provide quotes on long term care insurance policies. This is because insurance companies not represented by one site will be represented by another. This gives you a broader basis for doing better comparisons. Do this well and you'll be paying a lot less on your long term care insurance policy.

Buying Long Term Care Insurance - Is It Worth It?

2007-07-31T21:54:00.002-07:00

The philosophy behind insurance as a whole is buying something you hope you'll never need. This is the right mindset you need to have about buying long term care insurance. You hope you never need it. However, if you ever need it, you'll be spared much pain. But for those who still have doubts, consider the following...
Long term care insurance is different from health insurance. Health insurance gives you coverage for your medical expenses. Buying long term care insurance covers you if you ever need to stay in a nursing home; need assistance in essential daily activities like bathing, eating, dressing and so on. It also covers you in case you need rehabilitative care.
Although you don't expect the young to enter a nursing home, a young person may require long term care for a number of reasons. A young person may have an accident that will make them require a type of care not covered by any form of health insurance plan. Some diseases like Alzheimers can make any person young or old need long term care.
Buying long term care insurance will cover you if you have to enter a nursing home. If you consider that a year's stay in a nursing can cost up to $100,000 or $200,000 for a couple, you'll agree with me that it can easily wipe out most people's savings. This can easily shatter wonderful retirement dreams. Medicaid is really an option for the poor and it's really bad news if you qualify.
Buying long term care insurance should be seen as protecting your investments, savings and dreams. If you add the stress it can cause to your loved ones who might be forced to bear the burden, you'll see the wisdom in buying yours now.
You can pay for long term care insurance without stretching your current insurance budget if you get and compare quotes for all your current insurance policies. For best results, visit at least three reputable insurance quotes sites. Get and compare quotes from them and you will be surprised how much you'll save. What you save can then pay for your long term care insurance policy partly or wholly. Do this now if buying long term care insurance without breaking the bank is what you want.

Debate - Long Term Care Insurance - Is It Wise?

2007-07-31T21:54:00.001-07:00

Here's the big debate: Long term care insurance isn't necessary for you. Some people are unyielding in their position that they'll never get long term care insurance. I am not referring to those who are so rich that they can easily pay for long term care without becoming financially ruined. I'm not also talking about those who really are so poor that they qualify for Medicaid. I am referring to those who neither qualify for Medicaid because they're not poor nor can pay for a year's stay in a nursing home without becoming financially ruined. This article will take a look at the debate: Long term care insurance -- Is it Wisde?
Americans are living longer. That's good news. It's also bad news because the older people grow the more they are likely to require some form of long term care. Statistics show that one out every two of up to 40 percent Americans aged 65 and above are likely to enter a nursing home within their lifetime. Another report estimates that about 12 million Americans will require long term care by 2020. Can you stand the pain you'll cause if you eventually need long term care without long term care insurance?
If there's a fifty/fifty chance that something will happen, isn't it a smart move to be insured against it. Oh, it's 50/50 for 40% of a given population. But consider this: More than half of those who end up requiring long term care pay for it out of their own pockets (That's about $80,000 per annum). They saw it as something that happened only to others until they found themselves needing it.
If you think that's bad then you're in for a big surprise: These folks end up using up their life savings and painfully end up becoming welfare statistics as they end up falling back to Medicaid. Simply put, they become poor enough to qualify and that's really sad.
Is maintaining a stiff stance on long term care insurance then a wise one? Is becoming a burden to your children because you were a little thoughtless worth it? Is playing the probability game right if you're on the wrong side of the divide? You may never need long term care. That's a fact. But if you plan to live long you MAY need it. That's also another fact. You can decide how you want to use these facts: Take an unnecessary high devastating risk or play safe.
Visiting insurance quotes sites for comparison shopping will enable you save a lot (maybe a couple of thousands) in insurance. This is especially true if you have many insurance policies. All you have to do is get and compare quotes for each. You will make savings if you use just one of such sites.
But, you will get better results by visiting at least three. This provides you a broader basis for doing better comparisons thus increasing your chances of realizing more savings. If you do this well you can save enough from your existing policies to pay for long term care insurance without stretching your current insurance budget much. Please, if you decide to switch insurers do not terminate your existing insurance policy until the new one is fully operational.
Remember, while the debate on long term care insurance rages on you'll then have the peace of mind knowing you can't lose whoever wins: The guy who says you need long term care insurance or the guy who says you don't.

Long Term Care Insurance Facts - Let's Make A Few Things Clear

2007-07-31T21:53:00.002-07:00

Of all insurance policies, long term care insurance is one that's most misunderstood. If you've read of what people suffer as a consequence of such ignorance, you'll really go to great lengths to save more honest hardworking folks such pains. That's what this article is all about: Long term care insurance facts that will help you make very informed choices...
Long term care insurance facts on those who need it, those who don't need it and the right time to get it...
While you shouldn't start scampering around for a long term care insurance policy if you're under 50 years, long term care isn't needed only by those who are old.
Statistics show that a good percent of those who receive long term care are between 18 and 64. They make up about 40 percent of all those receiving long term care. These people receive long term care for reasons other than the frailty that comes with aging.
Here's another misconception: Get it when you see signs that you'll need long term care. This one shows total ignorance of how insurance works. Once it becomes evident that you'll need long term care you are declared uninsurable. Long term care insurance is profitable to insurance companies because of the probability factor. Remove it and you can't qualify.
At the other end of the spectrum are those who are crying wolf unnecessarily. Long term care insurance isn't for everyone. You don't need it if you're very rich. You don't need it if you're very poor(Medicaid will take care of you). But more importantly, if you're less than 40 you shouldn't really bother about long term care insurance yet. The only exception to this rule is if there is a history of certain health conditions that require long term care in your family.
If you're fifty, it's time. It won't hurt you if you get it earlier, though. Remember in the issue of long term care insurance it's better to be too early than too late.
Long term care insurance facts on how to pay less...
Visit trusted insurance quotes sites. Obtain and compare long term care insurance quotes. I recommend that you visit at least three quotes sites as it will make it less likely that you'll miss out offers not carried by the other sites. This provides you a broader basis for doing more thorough comparisons thereby increasing your chances of realizing more savings.
If you go through this process for all your existing insurance policies, you may save enough to pay for your long term care insurance without spending a dime more. A man saved $2644 on one insurance policy. I guess that will give you a great long term care insurance coverage with some change if you're that lucky

Long Term Care Insurance Advice - Paying Without Increasing Your Current Budget

2007-07-31T21:53:00.001-07:00

Long term care insurance advice: Is there a way to get your long term care insurance policy without stretching your insurance budget? You're not arguing about whether or not it's wise to get long term care insurance here. You just want ways to get it without paying a lot more. I have good news for you: You can even pay for a long term care insurance policy without spending a dime more depending on your profile. Learn how now...
Since there are a few folks who might be reading this without knowing what long term care insurance is for, let's explain it a little (If you already know all this then jump to the last two paragraphs for the long term care insurance advice)...
Long term care insurance takes over payment for long term care that doesn't require you being hospitalized. This includes stay in nursing homes or rehabilitation facilities. It also includes in-home care and assisted living for those who require help with essential daily activities like bathing, dressing, eating, etc. Your health insurance plan does not cover these kinds of care as they do not require medical professionals.
If you consider the cost of staying in a nursing home for a day ($100 and above) and then multiply by 365 days, you'll agree with me that the cost is big enough to wipe out many people's savings. Just imagine that some folks have to spend up to three years. To stretch it even farther: What if the three-year stay is for an old couple? They could easily spend $600,000 for such a stay. The other alternative of being catered for by their children can be really stressful depending on the extent of care they need.
Those who've had to give care to loved ones who needed long term care can testify to the fact that it can truly put a strain on a family. The funny thing is that the recipient in most cases knows the pain they are causing their loved ones. This makes it all the more painful. Few things can stress a family relationship as much as having to give long term care yourself. It's almost unthinkable if you have to provide such care for a couple. Think about it: That's not what you want to become to your children -- A burden!
Now to the long term care insurance advice for paying without overstretching your current insurance budget...
I assume you have other insurance policies like auto, home and health. The simple step is to get and compare quotes for each of your existing policies. Some people save over $2,000 by just doing this. All they'll do then is use the savings they've made on those other policies to pay for their long term care insurance. Please if you decide to switch to another insurer for any of your policies make sure you do not terminate your current policy until the new one is fully operational. This is to ensure you aren't without insurance.
You will get better rates on your existing insurance policies now by visiting not less than three quotes sites. Visiting at least three quotes sites raise the chances that you'd get a wider range of quotes. And, you know that because the likelihood of getting lower long term care insurance quotes is proportional to the range of quotes you get, the more insurers you obtain quotes from, the brighter your chances.

How to Find the Best Rates on Long Term Care Insurance in Arizona

2007-06-07T06:05:00.001-07:00

The type of care your loved one needs will help to determine the type of facility you want. Placing someone in a nursing home who is in charge of their faculties and they are able to communicate their wishes and needs to the staff, is different than admitting a patient that for one reason or another is unable to make their needs known.
If your loved one is more vulnerable and unable to communicate, they may be unable to report neglect or abuse. This by no means suggesting that inappropriate behavior is the norm, but you want to be assured that your family member is well taken care of and safe.
Little telltale signs of abuse include and are not limited to unexplained bruises, welts, and sores. Patients with bedsores or are dirty, have an odor, improper clothing for the weather, lice, dehydration, weight loss are signs of neglect. Signs of emotional abuse are derogatory remarks, verbal harassment and threats.
Here are a few things Arizona residents should look for when evaluating a facility:
1. Resident’s hygiene: As you walk through the facility, how do the patients look? Make a note as to whether or not the patients look and smell clean.
2. Staffing: How many staffers do you see? Is there only one nurse caring for 18 patients or is there an adequate staff to patient ratio based on the types of illness/afflictions of the patients.
3. Facility cleanliness and safety: When you walk through the premises, check to see if whether the corridors are clean or dirty. Are there broken windows? How does the furniture look?
4. Trust your instincts. If you’re thinking of putting a loved one in a facility, trust your initial gut reaction. If there is something about the facility that makes you feel uneasy, don’t ignore it. Maybe that facility is not for you.

How to Compare Low Cost Long Tern Care Insurance in Colorado

2007-06-07T06:04:00.002-07:00

Health care costs in Colorado are among the highest in the nation, and while there is talk of legislation to help ease the burden on Colorado citizens it is still up to each of us to compare health options and shop wisely.
This is just as true when looking for low cost long term care insurance as it is for any other type of health care insurance.
Long term care insurance is designed to provide constant living assistance to patients with long-term or permanent disabilities or disease (such as Alzheimer’s). While many people think only of older patients in regards to long term care, a growing number of younger people are requiring round-the-clock care due to disease and accident.
Round-the-clock personalized care is obviously expensive, and well beyond the means of the average person without the assistance of an insurance plan specifically designed to cover such a contingency.
When comparing low cost long term health care plans in Colorado there are many options which can greatly affect the cost of the plan you choose.
The age of the person being insured is one of the biggest factors. Obviously the younger a person is – and the better health the person is in – the lower the cost of monthly premiums for any policy you choose.
Other factors include the kind of long term care setting – in other words, does the policy cover 24-hour-per-day coverage in a nursing home setting, or will the insured continue living at home with only daily or weekly visits by a health care provider?
How long will care last? This can be measured in the number of days, weeks or years the policy will make payments, or it may be expressed in a maximum dollar amount that the policy will pay out. The duration you choose will affect the premium you pay for the policy.
Most policies have what they call an Elimination Period. This is simply a fancy way of saying that the policy has a deductible. The Elimination Period is the amount of time you must pay for long term care out of your own pocket before the insurance takes over.
Since most long term care policies are purchased years in advance of their actual need, most policies have the option for inflation coverage in order to keep the policy up-to-date with rising prices. Purchasing a policy with inflation coverage is more expensive, but may be worth it in the long run.

How to Compare Low Cost Long Tern Care Insurance in Colorado

2007-06-07T06:04:00.001-07:00

How to Compare Low Cost Long Term Care Insurance in Oregon

2007-06-07T06:03:00.002-07:00

Long term care insurance is probably the last type of insurance any of us want to think about, yet according to statistics from the state of Oregon’s Department of Insurance, just about half of all Oregon citizens will require some form of long term health care at some point in their life.
Long term care refers to any type of on-going assistance required for the normal chores of daily living, such as dressing, bathing, toilet functions, preparing and eating meals, walking, and other assorted functions.
Don’t fall into the trap of believing that Medicare or Medicaid will take care of all of your long term heath care requirements after you hit the magical 65, because the truth of the matter is, Medicare pays for almost no long term health care whatsoever, and Oregon’s Medicaid program pays for only a limited amount and will offer you no choice about the facility where you will possibly need to spend the last years of your life.
Finding low cost long term care insurance here in Oregon can be complicated due to the fact that so many factors must be weighed when designing a plan: do you want the plan to cover nursing home care or in-home care, what caps will the insurance have, what elimination period (deductible) can you afford, do you need built-in inflation protection, plus a myriad of other questions.
However, before you talk to an insurance specialist about low cost long term care insurance it would be a good idea to go online and at least begin to compare long term care plans on one of the many sites which allow for such comparisons. By making your own preliminary comparison of low cost long term care insurance in Oregon you will be better prepared to ask the tough questions that need answers before you make the commitment for an insurance policy that may very well determine the quality of at least a portion of your future life.

Introduction to Long Term Care Insurance

2007-06-07T06:03:00.001-07:00

There are many different forms of insurance available to the average person. Long term care insurance is designed to take in the cost of an aging society.
Of all of the various elements of the personal financial planning process, risk management and insurance is both the least enjoyable to consider and the most important to consider. There is nothing as certain as the uncertainty of life. No matter how much money you are earning or how wisely you are investing it, a sudden disaster can knock all of your careful plans over like a stack of blocks. Insurance is the most common method of managing these uncertainties and making sure that yourself and the people who depend on you are protecting as much as is possible.
The most common forms of Insurance are Life Insurance and Health Insurance. People feel they are fairly well protected with these against either illness or death. There is an area in between illness and death, however, that needs to be considered. This is the need for long term care. Long term care is usually defined as the need for assistance in performing the basic functions of life such as eating, dressing, mobility, etc. The problem is that most Health Insurance Policies will not provide coverage for long term care. The person is no longer suffering from a medical problem, but can no longer properly care for themselves without assistance.
In the United States, Medicaid will pay for this assisted living if the person has no funds or other means of paying. It is the person with assets who is in trouble. The cost of assisted living is high and can quickly eat away the savings and funds that were intended for other purposes. This is the basis for Long Term Care Insurance. It is a policy that is designed to provide the funds needed to pay for this assisted care so that your other assets can continue to do what you intended them to do.
Long Term Care Insurance Policies are generally sold by the same Companies that provide your Life Insurance Policies. Indeed, there are some Life Insurance Policies that have provisions for a certain portion of your death benefit to become available in the case that long term care becomes necessary. In other cases, the Long Term Care Insurance policy is a separate contract that has its own restrictions, exclusions, and benefits. The costs of the policies will vary depending on a number of factors. The age of the person purchasing the policy will be one of the most important considerations. It will normally involve a Medical examination also to determine the premium rate.
Your Insurance Agent can explain the benefits and the costs. It is important to understand what would be covered and what would be excluded in the same manner as evaluating a health insurance plan. It is also to remember that it is estimated that almost 40% of the people that require paid assisted living and long term care are between the ages of 18 and 65. Although many people think of long term care as a need of old age, this is not always the case

Who Is a Candidate for Long Term Care Insurance?

2007-06-07T06:02:00.000-07:00

Do to advancements in lifestyle and health care, we are living longer than ever. So, who should be looking into this type of insurance?
It would be very help to us when we are doing financial planning to have a real good crystal ball. If we knew for certain how long we were going to live and just what our future health was going to be, we would have no problem making decisions on such risk management ideas as insurance. It is impossible to tell what is going to happen in the future and we have to make those important decisions based on rather uncertain factors.
Who needs Long Term Care Insurance? The answer to that question is quite simple. It is really the people who have a lot to lose who need it the most. In the United States, there is no universal health care plan that provides coverage for everyone. On the other hand, people that have no assets and low income can receive some help from various programs should they become unable to care for themselves.
Long Term Care is usually defined as needing assistance to provide some of the basic functions of life. These would include eating, dressing, and moving from one place to another. People receive assistance and long term care in Nursing Homes or sometimes in their own homes from nurse’s aides and other caregivers. Although long term care is often thought of as a problem for elderly people, statistics do not bear this out. Something like 40% of all people receiving long term care are under the age of 65.
A well known example is actor Christopher Reeves who received extended long term care for almost nine years before his death. The problem is that long term care can be very expensive. When a person has assets that would disqualify them from receiving Government aid, this expense will whittle away those assets fairly quickly. Long term care is well named as often it can extend for a very long time. In most cases, Medical Insurance does not provide the answer as it usually does not cover long term care. The drain on assets will quickly create a financial problem The money that is intended for other purposes is needed to pay for the care and is no longer available. This is where the Long Term Insurance Policy comes into play.
It is important to be aware of the exclusions in most Long Term Care policies. In most cases, they do not pay for pre-existing medical conditions such as Alzheimer’s Disease, nor will they pay for care required for mental conditions. Long term care needed as a result of self inflicted injuries, such as suicide attempts, will also be excluded. It is the person who has built up some financial assets or is planning to do so in the future that should consider the purchase of Long Term Care Insurance. The old saying reminds us that people who have nothing, have nothing to lose. It is the people with something to lose who might be wise to consider a Long Term Care policy as a part of their comprehensive insurance package

Protect Your Home From Medicaid Reimbursement

2007-06-07T06:01:00.000-07:00

Many Americans look forward to the day they send in their last mortgage payment and own their home free and clear. They can spend their senior years secure in the knowledge that as long as they pay their property taxes, their most valuable asset is safe. When they die, they can pass their home on to their children, grandchildren, or other heirs. It’s a heartwarming picture, right out of a Thomas Kinkaid painting. But wait. What is that dark shape lurking outside, casting a shadow across the ivy-framed door?
It’s a Medicaid reimbursement official, lien in hand, ready to seize your family’s greatest asset. Is this some artist’s dark fantasy? Not at all. Most states have laws that allow them to seek reimbursement for Medicaid payments. Your home is exempt from recovery, but only as long as you live in it. The day you enter a nursing home on a permanent basis, that protection flies out your warmly glowing window.
If you are married, your house will remain exempt as long as your spouse lives in it. Should your spouse die, the state can place a lien on your home. With the lien in place, you can neither sell the house nor refinance it without reimbursing the state for your Medicaid payments. The state can enforce its lien upon your death. If what you owe equals the equity in your house, your heirs will receive nothing from the sale of your home. What can you do? Here are a couple of suggestions:
It will pay for in-home care, a stay in a nursing home, or a stay in an assisted living facility, so you never have to resort to using Medicaid. Chances are good that you will use such insurance. According to the American Association of Homes and Services for the Aging, 69% of Americans who live to be 65 will require long term care at some point.
2. Give your home to your children or other loved ones. The state cannot place a lien on the home if it is not yours. Be careful, though. The gift must be made more than 36 months before you enter a long term care facility. In addition, this action may have tax consequences for the person receiving the gift.
3. Transfer the home using a special power of appointment. With this strategy, you transfer the ownership of your home to someone else, keeping it away from the state. You can have the transfer occur during your lifetime or upon your death. You can reserve the right to change your mind and redirect the home to someone else.

Medicaid and Funeral Arrangements

2007-05-28T21:21:00.001-07:00

Health care costs have risen dramatically over the past decade, often at a rate two or three times that of inflation. After working an entire lifetime, many people are devastated by their health care costs upon retirement. A significant number of people need to live in nursing homes, the cost of which quickly drains an individual’s assets. Medicaid will assist with health care costs for people over 65; but to qualify for Medicaid people often spend their life savings and assets. However, with proper planning, you can ensure that your financial legacy stays intact while qualifying for necessary medical aid.
What is Medicaid?
Medicaid is a health insurance program funded and managed by both state and federal governments. Medicaid offers medical treatment, including nursing home care, for low-income individuals who are 65 or older, blind or disabled. Payment is made directly to the health care provider.
Medicaid Eligibility
To qualify for Medicaid certain requirements must be met. These may include your age, income and other assets (anything that can be sold for cash) and whether you are a U.S. citizen or a lawfully admitted immigrant. The rules for counting your income and resources vary from state to state and from group to group. There are special rules for those who live in nursing homes. Because Medicaid eligibility is based on need, a person is not eligible to receive benefits if they have income or assets that exceed the limits established by each state or county. If someone’s assets are more than the state allows, he or she will have to liquidate their assets to pay for care before they will receive aid from the program. Assets include checking/savings accounts, mutual funds, stocks and bonds, deferred annuities, the cash value of most life insurance policies, revocable living trusts, retirement funds, and burial trusts beyond a minimum amount. It is important to consider ways to ensure that you can protect your assets and still receive assistance from Medicaid. States can look back to find asset transfers between 36 and 60 months prior to the date an individual applied for Medicaid. These transfers may restrict the amount of insurance benefits you receive. It is important to contact an elder law attorney before you attempt to qualify for Medicaid coverage.
Prepay Your Funeral
One of the ways you can protect your assets from being considered a liability against Medicaid approval is to prepay your funeral. This must be done properly in order to be legally binding. First, you must purchase an insurance policy specifically for your final expenses. With the help of your insurance agent, you then irrevocably assign this policy to a trust or funeral home. Up to a legally determined amount, most Medicaid agencies exclude these funds when determining eligibility. This process ensures that you have the money you need for the remembrance that you want. It will also relieve your family of the burden of funeral expenses during their time of loss. Finally, it is a lawful way to reduce your assets and make sure you are eligible for the health care assistance you need.

How to Find the Best Rates on Long Term Care Insurance in Arizona

2007-05-28T21:20:00.003-07:00

How to Compare Low Cost Long Tern Care Insurance in Colorado

2007-05-28T21:20:00.001-07:00

How to Compare Low Cost Long Term Care Insurance in Oregon

2007-05-28T21:19:00.002-07:00

Introduction to Long Term Care Insurance

2007-05-28T21:19:00.001-07:00

Who Is a Candidate for Long Term Care Insurance?

2007-05-28T21:18:00.000-07:00

How Do You Select A Daily Benefit For Long-term Care Insurance?

2007-05-25T01:01:00.001-07:00

There are five foundational features of most LTCI policies and they are: (1) the Daily Benefit, (2) the Benefit Period, (3) the Benefit Setting, (4) the Elimination Period, and (5) the Inflation Protection Benefit.
All five of these features are very important and have a major impact on the care you will receive under the policy guidelines. But for this article we will focus on the Daily Benefit as this is one of the most flexible features of the policy and it is very important to get it right the first time.
The Daily Benefit simply states how much the policy will pay out in benefits per day that you need care. Some policies pay out benefits based on a daily limit and others multiply that daily amount by 30 to establish a monthly benefit amount. But whatever method the policy uses, either daily or monthly reimbursement, the process always begins with figuring how much you will need on a daily basis to pay for care. So how do you select your Daily Benefit?
You can easily determine a reasonable Daily Benefit amount by calling local nursing facilities and home healthcare agencies to find out what the cost for these services average locally. When calling local facilities be sure to ask what the costs are for long-term care room rates and not short-term rehabilitation room rates as they can be much more expensive. Also ask for rates for both private and semi-private rooms, as there can often be a considerable difference in cost between them. It is important that your Daily Benefit adequately cover facility care costs as this can be the most expensive care that you may receive.
Once you have a good idea of what daily expenses will be involved in long-term care in your area, the next step is to decide how much of that daily amount you feel that you could reasonably co-insure out of your own funds. When making this calculation, keep in mind that whatever funds you will provide for your own care must be kept in a readily accessible investment vehicle so that you can access them easily if and when they are needed.
Some folks think that they have to over-inflate the Daily Benefit amount to be sure that they can keep pace with the rising costs of care in this industry. And it is true that long-term care costs are rising so rapidly that a suitable Daily Benefit today may be only half of what is needed in just fifteen years or so. However, keeping the Daily Benefit current with rising costs is usually the function of one of the other foundational features of a well-designed LTCI policy, the Inflation Protection Benefit.
The effectiveness of the Inflation Protection Benefit is closely connected to making sure that the Daily Benefit that you choose at the inception of the LTCI policy is as correct as possible. So do your homework and use the suggestions given above to select a meaningful and appropriate Daily Benefit for your LTCI policy in order to have the protection you need, not only now but many years into the future as well.

Medicaid and Funeral Arrangements

2007-05-25T01:00:00.004-07:00

How to Find the Best Rates on Long Term Care Insurance in Arizona

2007-05-25T01:00:00.003-07:00

How to Compare Low Cost Long Tern Care Insurance in Colorado

2007-05-25T01:00:00.001-07:00

How to Compare Low Cost Long Term Care Insurance in Oregon

2007-05-25T00:59:00.003-07:00

Introduction to Long Term Care Insurance

2007-05-25T00:59:00.001-07:00

How To Find Affordable Long Term Care Insurance in Colorado

2007-05-23T02:46:00.001-07:00

Long term care is a diversity of services offered that provides medical and non medical help to those suffering from chronic illnesses or disabilities. Long term health care helps people meet health and personal needs. For the most part long term care is used to assist those with daily activities, such as dressing, bathing, and cleaning. Such services can be provided anywhere, a nursing home, private homes or in the community. Long term care is defined as a continuous stay for thirty days or more in a nursing facility, a home, or Community Based Services.
Colorado Eligibility for Long Term Care
1. In order to qualify for long term care in Colorado an applicant must be of the following:
Elderly- must be 65 years or older
Blind- you have to meet the Social Security’s standards of blindness
Disabled - If you receive Supplemental Security Income or Social Security Disability Income or have been determined disabled by Disability Determination Services then you can qualify for long term care.
There are two applications that must be finished simultaneously. This is imperative in deciding the first date of eligibility:
Financial eligibility determination
The Medicaid application can be filled out through Colorado’s County Department of Human/Services
Uniform Long Term Care form for service eligibility. You can find this form at your county’s option for Long Term Care Single Entry Point or at a nursing facility. There are twenty six Single Entry Point that service the whole state. The forms are then reviewed by a state designated peer review organization.
Shopping for Long Term Care Insurance
The National Association of Insurance Commissioners has created a “Shoppers Guide to Long Term Care Insurance”. This brochure can be obtained for no cost at the Colorado State Insurance Department. The booklet provides basic information on long term care insurance.
Before you buy any long term care insurance it’s important for you to know exactly what you want out of long term care insurance. Most importantly make sure you have found an insurance company that you really trust.
Next you should consider the insurance company financial stability or strength ratings and rate increase overtime. Why? Because you want them to still be able to be there for you in the future. It’s important to understand long term care terms that will be used when you’re looking for insurance that will provide such care. Make sure you do your research beforehand and if you don’t understand some of the terminologies used don’t hesitate to ask questions.
As you have probably already know, obtaining long term care in Colorado or basically in any state can require a lot of work. If you are to be successful then it’s important for you to do the research and be prepared with the information you might need to provide. You can definitely find affordable long term care insurance in Colorado.

Long Term Care Insurance - Insurance to Think About - Seriously!

2007-05-23T02:45:00.002-07:00

If you are under the age of 50, then you probably haven't thought about the benefits of long term care insurance, let alone doing some research for insurance quotes. Most of us insure our familiar tangibles, like our homes or our vehicles! And if you work, your health insurance is more than likely provided by your employer...that topic for another article.
Research has shown that the vast majority of people in the world will live longer. This is due to medical advances as well as a rise in health consciousness. Baby boomers, especially, will make up the vast majority of seniors in the near future. And as baby boomers live longer, they may eventually need medical, home or nursing care.
Most western cultures do not discuss how to care for aging family members. Some people have their health care already specified and taken care of. But families who are not financially able usually just let the "chips fall where they may." Whether care is provided for or not, caring for the sick or elderly is not a "hot topic" at most dinner tables.
It should be.
If you, or anyone has ever observed or been in a position where you were responsible for the care of an older or chronically ill family member, then you realize that planning for long term care is a beneficial aspect of heath care.
An aging parent or a loved one who develops a degenerative condition, a chronic illness (heart attack or stroke), or is in a major accident, may require assistance after hospital care is over from either a nursing home or a skilled health care professional.
What is long term care insurance?
Long term care insurance provides the recipient with assistance for daily living activities . Bathing, dressing, and eating are "living activities" that would be performed by a nursing home or skilled health care professional. These services would either take place in the home environment, or at a nursing home.
Using Health Insurance Benefits
You can use health insurance benefits to pay for hospital care, doctors visits and prescription drugs. Most policies don't cover the expenses for non-hospital, nursing or home care. If your aging, chronically ill or injured family member needs either of these for an extended period of time, the out of pocket costs can add up to thousands of dollars!
Some considerations
If long term health care is not for you, here are some points to know:
Medicare benefits are not provided until after a person reaches 65 years of age.
Medicare benefits do not cover all expenses.
Medicaid benefits are not provided until all other financial assets are exhausted.
Deciding whether or not to purchase long term care insurance takes research and planning. But if you are healthy enough and able to purchase one, this type of policy can provide a measure of independence for the policy holder. It may also free other family members from the financial burden and emotional strain that may come with providing care for an aging parent or loved one.

How Do You Select A Daily Benefit For Long-term Care Insurance?

2007-05-23T02:45:00.001-07:00

Medicaid and Funeral Arrangements

2007-05-23T02:44:00.002-07:00

How to Find the Best Rates on Long Term Care Insurance in Arizona

2007-05-23T02:44:00.001-07:00

How to Compare Low Cost Long Tern Care Insurance in Colorado

2007-05-23T02:43:00.000-07:00

Insurance - The Real Reason For Long -Term Care Insurance

2007-05-21T02:36:00.001-07:00

My mother-in-law recently passed away after a long and courageous battle with cancer. Throughout her battle, our family had to deal with many emotional and legal issues. Over the next couple weeks, I’ll be discussing these in more detail in the hope that you and your loved ones will be prepared for life’s difficulties.
The physical impact of caring for a sick loved one is enormous. Everyday tasks that we often take for granted, such as eating, bathing, or going to the bathroom become major chores. As my family found out, trying to provide all of the care within the family quickly became unmanageable. The additional duties significantly impacted all the relatives involved physically, financially and emotionally.
For many, the cost of insurance that provides help with long-term care seems prohibitive. But the cost of not having it are far greater. You can’t underestimate the emotional impact a long-term illness will have on a family. It is like a heavy, dark cloud that can’t be lifted. The assistance paid for by a long-term care insurance policy provides the family the ability to deal with the emotional issues instead of focusing on meeting the physical needs.
Without long-term care insurance, caregivers are on call 24/7. There are no days off, no ‘punching-out’ of the time clock for a quick break. Those caring for loved ones suffer from sleep deprivation and high stress levels. Healthy habits such as regular exercise, balanced diet and regular sleep go out the window. Studies have shown that long-term caregivers have a shorter life span and increased health problems than their same-age counterparts. My own father-in-law had only a few hours of sleep each day for weeks. We soon became concerned for his health.
For some families, it’s even worse. Weeks drag on into months and months into years if their loved ones suffer from illnesses such as dementia or Alzheimer’s. In my mother-in-law’s case, she was able to remain fairly independent until the last six weeks. But others dying from cancer have needed intense care for six months or more.
Of course we feel pain, grief and fear when someone we love is ill. But caregivers focus so much on the needs of their loved ones that their own needs go unmet. They feel guilty expressing their own problems when their loved one is suffering so much. The physical exhaustion makes dealing with their emotions even more difficult. It’s hard to be objective when your world is turned upside down. And to whom do they turn? They can’t easily tell the one they’re caring for how they feel. Caregivers often stuff their own needs and go into ‘survival mode’, just trying to get through one day or one hour at a time.
Compounding all of these difficulties is the financial impact of long term care. In our case, my father-in-law is a pastor of a small church and they were very understanding, giving him the freedom to care for his wife without costing him his job. But what if he was working a regular 9 to 5 job? Sick days only last so long. If other family members aren’t able to pick up the slack, who will?
Few can afford professional nursing care at $25 an hour for an extended period of time. The cost of custodial care is not covered by most health insurance plans or Medicare. And Hospice only takes over when a terminally ill patient no longer seeks treatment.
If you’ve never considered long term care insurance, please think again. I now understand that long-term care insurance is as much for the family as for the patient. The unfortunate truth is that many of you reading this article will find yourself on either the giving or receiving end of long term care. Having long term care insurance will go a long way in reducing the inevitable suffering that long term illness brings, both for the caregivers and the patient.
Selecting the proper long-term care policy isn’t always easy. Consult with a reputable advisor and get quotes from several different companies. I will be happy to help you in any way I can.

Opportunity Cost and Your Long Term Care Decision

2007-05-21T02:35:00.001-07:00

If you are out shopping for long term care (commonly abbreviated as LTCI or LTC), I'm going to encourage you to take a look at a way of providing long term care benefits that is probably new to you. On the other hand, if you are in the crowd that thinks they will never need long term care, I would also suggest you evaluate this line of thinking.
Dick and Jane are both age 65, recently retired and models of good health. They have ignored the long term care subject until recently. They just put Jane's mother, who is 88, into a nursing home. Talk about sticker shock! She is in a nice place, but Dick and Jane are not 100% certain that her assets will allow her to stay there for the rest of her life.
Consequently, they have been out looking at long term care for themselves. They figure they can afford to insure a portion of what it might cost them if they ever need some form of LTCI, so they are looking at a benefit of $3,000 a month. The premium is around $4,200 a year.
Here's a new concept that Dick and Jane must become accustomed to now that they are retired. They both had good jobs during their working years. If they ever wanted to buy anything, it was just a question of looking at their income to see if they could swing the purchase. Pretty straightforward.
Now that they are retired, most of their expenditures are going to come from investment returns on the assets they have accumulated, not income from working. So they need to understand the difference between premium cost and opportunity cost. Here's what I mean…
If they elect to buy this $4,200 a year long term care policy, the money has to come from somewhere. Chances are it's coming from the interest earned on perhaps a CD or an annuity. But there is an opportunity cost associated with paying the premiums from earnings on any asset.
Let's say they are going to pay this $4,200 from the interest on a CD they own which is earning 5.4% interest. Since interest is taxable, and assuming they are in a 15% tax bracket, they would have to have $91,300 in that CD to produce $4,200 after tax to pay the premium.
They can't spend the $91,300. It can't grow. Basically, they have "committed" $91,300 of their assets to pay the premium on their LTC policy. That's the one "job" of this $91,300. The premium may only be $4,200 a year, but the opportunity cost is $91,300.
Let's take a look at another of their alternatives. It's called asset based long term care. How it works will unfold as I provide the example and contrast below.
One approach to asset based long term care involves re-positioning $91,300 of Dick and Jane's CD to a combination long term care/life insurance policy plan with an insurance company. Here's what moving this money does for them…
The money on deposit with the insurance company grows at interest, but it is tax-deferred interest so the insurance company will not send them 1099s every year for an amount they have to pay tax on like the bank is required to do. In 10 years, assuming current rates, the $91,300 will grow to $127,000; in 20 years $161,000. The CD, remember, does not grow, as its job is to spin off interest to pay the annual $4,200 premium on the traditional LTCI plan.
If either Dick or Jane needs any form of long term care, the insurance company plan will pay them $3,900 a month for 50 months--$900 a month more than the traditional plan.
But here's the real kicker.
If Dick and Jane never need long term care, then the camp that doesn't buy it would have been right. If Dick and Jane bought the traditional long term care plan, in 10 years they would have paid out $42,000 in premiums and about $7,400 in taxes on their CD interest in order to net out the required premium. That's a total of $49,700. The $91,300 portion of their CD would still be $91,300.
However, if Dick and Jane never need long term care, chose the asset based long term care plan and both die, for example in 10 years, the outcome is different. They have paid no annual premiums and the life insurance company will pay about $198,000 tax free to their kids.

The Care You Pay For Both The Company And Clients

2007-05-21T02:34:00.000-07:00

The industry of retirement and long term care have become big business. The simple fact is that people are living longer but can't maintain their own home enviorment. There are many options that come into play ,usually the first choice families make is when they are in crisis, mom or dad has taken a fall or change in condition. They end up in the ER or hospital with the staff and social worker telling them mom or dad can't be left alone anymore. Just imagine hearing this at 3am on a week night when you have to be at work at 9am . This becomes even harder when siblings don't agree.
The truth is it is hard to accept that you now must be the person who makes choices and decisions for the person who taught you how. If you or the aging person is lucky you have already started a conversation and even have long term care insurance to help off-set the cost , if not its a scary place to be. The first and most important thing to remember is The marketers for the facilities you might be looking at are not your friends. The job they are paid to do and if do well is to make you think they are only looking out for the persons well being. These people are in it to make money, I know because I worked in long term care all aspects for over 20 years.
There are several retirement communities that spout they are not for profit when in fact they are managed by a management company that is all about the bottom line. You need to know it will not be the people you interact with daily that will make the decisions that directly related to the care of yourself or loved one. The choice of vendors.pharmacies and staffing numbers are decided by someone that is very rarely in the building.
The second important thing is to not look to the lic. agencyof assisted living who provides their lic. to give care, They will not protect you or your loved ones interest. The assisted living facilities are now providing nursing home care but are not required to have the same professional caregivers and are not subject to the same scrutiny as nursing homes. They do not even require a real nurse to be there, someone just needs to sign the oversight form monthly. The majority of medication is administered by someone who took a week long course only.
Even when on a licencing visit when they find medications have not been signed out as given these facilities are not fined but you can believe the resident has been charged for it. When actually you don't know its been given. The Lic agency will follow-up on a complaint( only because this is mandated by law) but seldom do they find the complaint founded when it is in reference to the number of staff required to provide service or care to a certain number of residents. Recently a local lic. agency agreed with a facility that stated 1 nurse and one cna could adequately care for 53 residents on 6 wings on two seperate floors. Including the need for incontinent care and medication administration.
The monthly rent for some of these residents exceeds $4000.oo because of the level of care they need,remember many leases are service based which means you pay if dad so much as needs someone to remove his socks and shoes. The premiums paid by you for long term care(if you have this insurance) result in the insurance company making payment based on the services the facility says you or your loved one require but does anyone from the insurance company physically come to the facility and see that these services are truelly being provided on a consistent basis?
The majority of time a form is faxed to be completed and is usually completed by someone who does not do or even see the care as it is provided.The bottom line is with out changes,without the demand of accountability nothing will change and that is why I am sad to say I have left the healthcare feild.I wish now to educate and advocate I will not be part of the problem I hope to be part of the solution.

AARP Long Term Care Insurance

2007-05-21T02:33:00.002-07:00

The AARP insurance is a long-term policy that rises above common coverage of Medicare. These plans help you to discover solutions to care for your loved ones. AARP insurance covers anyone over the age 50. These policies will provide you with benefits, such as membership. Membership benefits often mean that you only pay less than $100 annually. Your spouse may also benefit from these insurance plans.
These long-term insurance plans often give you benefits and discounts. The policyholder sometimes has access to homeowner coverage, health coverage, and auto coverage. In addition, the policyholder may receive services from online, such as music, travel, grocery savings, computer savings and other benefits.
AARP supplies the policyholder with advocacies. The advocacies are often in Washington, which these people will represent you. The representation will cover purchased safety, Medicare issues and social security issues.
This long-term insurance provides you with advocacies that give you advice on living healthier. You receive plans for financing, protection over purchase, living healthier advice and tips for parents in taking care of their loved ones.
Because cost increases occur annually, especially in nursing home care Medicare will only provide minimal care to the patient. The patient must pay the remaining balance of his or her care from his social security benefits. AARP insurance steps in to battle this problem.
The long-term care insurance protects the policyholder's investments as well as their savings. This policy will preserve your freedom. Unlike common Medicare, this plan enables you to opt for any nursing home you choose. In other words, Medicare recipients only qualify for selected nursing homes as required by the providers.
You have a broader option in AARP insurance. This long-term plan covers payments or expenses of your healthcare that you receive at home, in spite of who you have as a caregiver. This plan will also cover nursing home expenses, adult care, or any facilities that provide care for elderly.
You have other benefits with the long-term insurance policy. You can opt for flex plans that will accommodate your needs. If you are on a strict budget, AARP insurance providers will find a plan and coverage to fit your needs.
Common Medicare does not cover extensive needs in healthcare for the older generation. This is a huge problem, since many elderly people are not getting the health care they need. Too many people die earlier because of this problem.

The Guide to Long Term Care Insurance

2007-05-21T02:33:00.001-07:00

When you think about long-term care insurance, you want to consider a few questions. First, you want to decide if you truly need this type of coverage. Next, you want to consider what the plans will cover.
In addition, you want to compare the costs and the benefits of taking out long-term care insurance. Once you decide you want to learn about basic plans verses comprehensive packages.
To begin evaluate your overall case:
Do you have Alzheimer disease? If you do then you will need a long-term care insurance policy to cover expenses, such as long-term medical needs and care provider. If you have Alzheimer disease, you will need a policy to cover nursing home expenses in the future.
HMO branches into Medicaid and/or Medicare. These insurance polices will cover basic healthcare needs, prescriptions and so on. What Medicaid and Medicare will not do is cover name brand prescriptions. In some instances, you also pay co-payments. Medicaid and Medicare will cover nursing home expenses, caregiver services, and basic medical expenses including hospitalization. However, if you make x amount of income, you may not qualify for HMO plans such as Medicaid assistance. Medicare is usually given to those 65 and older.
When considering long-term care insurance you want a plan that will cover expenses when you have to retire or are unemployed for a length of time. Look for plans that will cover healthcare costs, adult care, and will offer you coverage for caregivers if you need them.
Any insurance plan includes interest, premiums, and sometimes deductibles. Medicaid does not have deductibles but other types of insurance plans do.
The interest rates are based on your gender, age, risks, marriage status, health condition, and so on. There are different types of policies and coverage so check around to explore your options.
When you search for long-term care plans visit the web to search through various companies that offer these plans. You can use the quote systems to compare the types of insurance policies, prices and so on.
At what time you search for coverage buy the plans earlier in your life so you will save on premiums, and interest rates. Some of the long-term care insurance will give you a surplus of benefits, so search the Internet to find the best plans and rates.
Other types of insurance plans include life insurance, term life, healthcare insurance, HMO, cobra, and so on.
Check your current plans to see what you have already. You may have sufficient coverage to protect your future. If not, then review all plans. Rather than focusing on one type of insurance, you want to find coverage that gives you the most for your money. Some insurance plans will reimburse you when you are out of work. Some plans will also cover burial expenses. So be sure to surf through the different plans when considering insurance.

Critical Claims Statistics for Critical Illness Cover

2007-05-21T02:32:00.002-07:00

Any form of insurance can be seen as a risk.
You pay a monthly or annual premium to an insurance company for a set amount of cover, effectively passing the risk to the insurance company. As long as you pay the premiums you'll continue to be covered, for whatever purpose.
When it comes to protecting YOURSELF in the form of life assurance, critical illness cover, permanent health insurance or private health insurance you really do need to take the time to do your research (or pay someone to do it for you) as this form of cover is not the type that you'll normally be shopping around for on an annual basis.
For example, once you've applied for and been accepted for income protection cover it's unlikely that you'll change the plan or company that you're insured with in the future as the cover is based on your age and health at the time you apply.
One of the factors that you may not have included in your research is the actual claims history of the insurance company that you choose. After all, if you put in a claim you'll want to know what your chances of a payout are going to be.
During the last 2-3 years more insurance companies have been publishing their claims statistics. This is crucial information as it gives you the opportunity to understand which conditions are being claimed for the most (so you can ensure that your plan covers these conditions and the wording of these conditions is competitive when compared to all other providers).
Fortunately, the Association of British Insurers (ABI) publishes a set of definitions for 20 conditions (see below) and registered insurers who cover any of these conditions must comply with, or surpass, the ABI definition.
The 20 conditions:
-Cancer
-Heart attack
-Major organ transplant
-Stroke
-Coronary artery by-pass
-Kidney failure
-Multiple sclerosis
-Aorta graft surgery
-Blindness
-Deafness
-Loss of limbs
-Benign brain tumour
-Coma
-Heart valve replacement or repair
-Loss of speech
-Motor neurone disease
-Paralysis/paraplegia
-Parkinson's disease
-Terminal illness
-Third degree burns
Many companies also cover additional conditions, including bacterial meningitis and pre-senile dementia.
Skandia, one of the leading providers in the critical illness market, have recently released their claims statistics (covers claims up to 1 February 2007).
They have:
-Paid 1920 claims totalling over £182m
-The average age of claimants is 46
-On average a policy is in force for 4.7 years prior to a claim
The most common claims are for:
-Cancer, 59%
-Heart attack, 15%
-Heart surgery, 8%
-Stroke, 7%
The most common forms of cancer claimed for are:
-Breast cancer, £23m
-Lower intestine, £11m
-Malignant melanoma, £9m
-Prostate, £7m
They have paid 88% of claims, with the remainder being declined for the claim either not meeting the definition (10%) or where the applicant did not disclose all the information required at the time of application (2%).
The Financial Tips Bottom Line
If you currently have ANY form of personal protection policy, it makes sense to review your plan(s) to ensure the cover you have is competitive and suitable for your circumstances. If you don't yet have cover make sure you do thorough research before you buy a policy.

How To Find Affordable Long Term Care Insurance in Colorado

2007-05-21T02:32:00.001-07:00

Three Ways to Buy Long Term Care Without Paying Premiums Out of Your Pocket

2007-05-15T05:27:00.002-07:00

Stop 100 people over 65 on the street and ask them if they will ever need to go to a nursing home and 99 will say, “No!” Folks tend to equate long term care insurance with nursing homes, but there are other aspects of long term care. Home care, assisted living, adult day care and hospice care are all forms of long term care which cost money where the person never sees the inside of a nursing home.
Planning for the many types of long term care just makes good financial planning sense.
However, long term care can be expensive, especially if a person waits too long to buy it. Age and health problems could make premiums prohibitive or even render the coverage unattainable.
What if there was a way to make sure you had long term care coverage if you ever needed it, but never had to take premiums to pay for it out of your income? Actually, there are quite a few. Let’s look at three of them…
1. Sell a life insurance policy.
Unbeknownst to many people, there is an “after market” for life insurance policies that have served their purpose and are no longer needed. There are companies that will buy policies on behalf of pension and institutional funds which hold them as part of their investment portfolio. The best part is that they will buy them for more than the cash value.
Other insurance policies that may be a candidate are those where the premium takes a huge hike because of the drop in interest rates, policies with maximum loans about ready to collapse and create a taxable gain but with no money to pay the tax or even term insurance policies that are nearing the end of their term.
When a policy is sold, one option would be to transfer all, or a portion, of the proceeds into an “asset based” long term care plan. Done deal. Ask your financial planner about asset based LTC plans.
2. Withdraw money from an annuity.
Over 90% of the people who own a non-qualified deferred annuity die owning it. It is never converted to a life income. Essentially it serves as a longer term “rainy day” fund than a CD. The fact that the interest earned is not currently taxable is an attractive feature and makes the money grow faster than a taxable CD.
However, at some point the piper must be paid. When someone dies holding an annuity and leave it to their children, the children are required to pay the tax on the gain. You may have heard this referred to as the annuity “ticking time bomb”.
There is a way to avert this time bomb tax, provide long term care for yourself and not take any money out of your budget. There are several ways to skin this cat.
a. If your annuity is large enough, simply take the 10% penalty-free withdrawals each year and move them into a 10-pay long term care plan.
b. The only mental deterrent that comes up on this suggestion is that there may be remaining surrender charges on the annuity. No problem. Most companies allow you to annuitize. If the annuity pay-out period is at least 10 years, most of them waive any surrender charges.
3. Exchange all or a portion of a CD, non-qualified deferred annuity, variable annuity or IRA for an annuity/long term care combination plan.
This entails simply moving money “from one of your pockets to another”. The difference is that the pocket to which the money is moved has long term care benefits in it as well. This technique also uses the “asset based” long term care plan approach.

Facts You Need to Know About Health Insurance

2007-05-15T05:27:00.001-07:00

First of all, what is health insurance?
Health insurance is basically a contract between you and an insurance company. The essence of it is, if you pay a certain amount to them per month they will pay your medical bills in the event that you have to see a doctor, have surgery, or have a course of prescription drugs.
What Kinds of Health Insurance are there?
There are basically two broad categories of health insurance: basic and major medical plans. Basic plans usually include hospital stays, surgeries, and emergency treatment. These types of plans usually pay one hundred percent of the costs incurred; however their payment limit can be as low as $10,000 and often max out at $100,000 leaving the individual to cover all other costs.
Major health insurance usually includes hospital stays, surgeries, emergency treatment, prescription medications, x-ray and laboratory services, preventive care (for example yearly physicals), ambulance expenses, dental and mental heath care. Major health plans will often pay deductibles (i.e. cover the entire medical bill) up to $100 to $500 per year, depending on the plan, and then require the customer to pay twenty percent of their medical bills while the company covers eighty percent. Major health plans payment limits can reach $500,000 or $1,000,000 or even more.
So, while your basic plan may seem more cost effective, in the long run you’d be better off with a major health plan.
Pre-existing conditions clauses
Be sure to be aware of any pre-existing conditions clauses for non-payment when signing up for health insurance as these plans can include conditions that came into play up to six months before you got insurance but weren’t treated for. For example if you were in a car accident and had a herniated disc in your back and weren’t treated for it, but then you got health insurance and went to a doctor, technically if there is a pre-existing condition clause your health insurance doesn’t have to pay for any of your medical bills that have to do with your herniated back.
Choosing Health Insurance
When choosing health insurance it is best if you compare plans prior to signing any contracts. Ehealthinsurance.com is available for speedy online quotes from many health insurance companies in your area. Be sure to fill out all parts of the application process as the smallest detail can affect your policy price. Health insurance is a highly competitive market so by shopping around you can be sure to get a good deal.

Florida Long Term Care Insurance

2007-05-15T05:26:00.002-07:00

Long-term health care can be a very stressful, time-consuming process, and in some cases overall frustrating. Between seeking out high quality care and finding a way to pay for it, most people find themselves very distinct in their findings. If you are venturing into the world of extended care financial risk management for the first time, know that you are not alone and that with some a great deal of consulting with an insurance professional you will find the product that fits your need. A great challenge related to finding long-term health care stems from the fact that Medicare does not provide for extended care for senior citizens upon retirement. Although some packages cover specific costs, the overall consensus would be that they are usually for short-term stays. Long-term health care is provided only when it is linked to a severe medical injury or illness. With the cost of healthcare rising on a daily basis it is creating a significant out of pocket expense for the senior community. Most people expect to use Medicare to pay for their post-retirement health care needs and are shocked when they realize the minimal benefits they actually get. It is a challenging situation for many individuals and policy makers alike, and at present, the only solution is careful planning on the part of patients and their families.
Think Ahead
As the increase in a need for healthcare becomes more prevalent it is very discerning that our senior population is going without better benefits. With the continuation of life expectancy growing to new highs health insurance programs seem to be at a new all time lows. You must think into your future and speak with insurance professional that can assist you in providing proper information so you can make a sound decision like www.FloridaHealthInsuranceWeb.com. Recent national statistics suggest that the average annual cost of nursing home care is close to $50,000. This is a financial burden that few people can take on. You must think ahead and put yourself in a proper channel to have the best outcome in your golden years. In most cases in the years past family structure were very different. In a time where an elder in the family became sick there were many family member to take on this financial burden. These costs are rising so rapidly you must really think ahead with your Long-Term health solution. If you do decide to go with the financial burden on the family I promise you a great deal of frustration and exhaustion will arise. For a sick or needy parent not only takes a toll on the caregiver, but on the broader family system as well. Many seniors are eager to retain independence as long as possible and find that when their children care for them, their autonomy is necessarily undermined.
Quality Care
Living at home is not an option. There comes a time when despite everyone's best efforts, it simply makes more sense to look for a long-term care facility. This need not be a depressing or demoralizing experience. When putting together an extended strategy to make sure a certain care center can make life easier for all involved, and can ease the strain on family relationships. There are a variety of options for those interested in long term care. From home nurses and community-based care to assisted living and traditional nursing homes, there are health care arrangements to meet every need. The key in this situation is to focus on the cost incurred for these types of facilities and the quality of care you want your closest family members to have. Long-Term Care must be taken care of. Let an insurance professional give you a detailed explanation of what is out there and the avenues you must take to get there.

Insurance - Understanding Long-Term Care Insurance

2007-05-15T05:26:00.001-07:00

Today’s seniors are living longer than ever, but as life spans increase, so do the needs for additional care. The majority of today’s retirees will need some form of special care as they age, whether that help is delivered in their own residence, in an assisted living facility or at a nursing home. The cost of such care is skyrocketing and many find they are unable to afford it.
Our recent series of articles has discussed this situation in great detail, exposing the gap that exists between what seniors need and what government programs actually provide. The best way, by far, to fill this gap is with Long Term Care Insurance.
Long Term Care Insurance (LTCi) is an insurance policy that covers your care when you can no longer perform at least two of six daily functions. These ‘activities of daily living’ are bathing, dressing, eating, toilet use, urine and bowel continence, and getting in and out of a bed or chair.
Each LTCi policy works a little differently. Some require you to cover the first 90 days of care before coverage begins, while others waive that waiting period if the need is for in-home care. Some pay so much per day, while others pay actual expenses up to a certain amount. Some have care coordinators that arrange for all the care, so you don’t see the bills or have to handle any paperwork.
Anyone seeking to purchase LTCi has to medically qualify. The underwriters look at your health differently than if you were applying for life insurance. LTCi underwriters are more concerned about illnesses and diseases that are likely to keep you from caring for yourself, not those that will cause death. Osteoporosis and diabetes are examples.
Most companies have preferred rates for those in excellent health, with normal rates for the rest. LTCi premiums are also based on your age. That means the longer you wait the higher the premium will be. There is a two in ten chance of needing long-term care after age 50, a two in five chance after age 65, and a seven in ten chance after age 75.
As a result, it is better to buy LTCi sooner as opposed to later. This should be seen as a pre-retirement purchase. I recommend strongly considering it around age 50.
There are many factors to consider when choosing a LTCi provider. Since this coverage is so critical, only do business with insurance companies rated at least AAA or AA by Standard and Poors. Beware of companies that have just entered the market. Check how many LTCi policies they have issued. If they haven’t issued LTCi policies for at least 10 years and aren’t one of the major players, stay away.
Many companies (including some that are major household names) entered the business, only to exit it a few years later. Others don’t have the actuarial experience to properly price policies and end up raising premiums. Either way the policy holders suffer.
Don’t choose a company that has raised rates on existing policy holders. Don’t choose a plan that requires you to buy additional insurance every three years to protect yourself from inflation. It’s better to have inflation protection automatically built into the policy.
You get to choose how much coverage to buy. Don’t purchase three years of coverage just because that’s the length of the average nursing home stay. This is ridiculous! The majority of people use LTCi to remain independent, at home, as long as possible. They get LTCi because they don’t want to go into a nursing home! Get unlimited coverage if you can afford it.
In my experience, the best Long Term Care insurance is Genworth Life Insurance Company (formerly General Electric). They are the biggest kid on the block, doing LTCi business since the 1970s. No one that has purchased a policy from them has ever had a rate increase. It sets the Gold Standard in the industry.
Don’t try to save a few dollars by going with a questionable company. This is insurance that could pay back 10-100 times what it costs you. There’s a 50% chance you will use it. Don’t skimp—what you save today may cost you much more down the road.

Insurance - Long Term Nightmare

2007-05-15T05:25:00.002-07:00

Recent legislation in Congress may make it even more difficult for seniors to qualify for government-paid long-term care coverage. If you don’t take action now, you may be setting you and your family up for a Long Term Nightmare!
This problem is so potentially damaging, yet so little understood, I’ve decided to dedicate multiple articles to covering it. In this article, I’ll expose the problem. Future articles will explain possible solutions.
Seniors know the potential cost of long-term care could devastate them financially. The thought of seeing the nest egg they’ve worked years to build evaporate to pay for their care is hard to take. Some seniors seek to find ways to manipulate the system so that they can qualify for government assistance. Others mistakenly believe that Medicare and Medicaid will pay for their care.
The reason that many feel the government should cover this cost is because Medicare and Medicaid are designed to provide health insurance to those over 65 (MediCARE) or to those who are impoverished (MedicAID). Since the need for care is usually the result of failing health, why shouldn’t it, they reason.
The terms ‘long-term care’ and ‘skilled-nursing care’ refer to different needs. Understanding the difference is critical to understanding the problems you and your family may face. Knowing the difference will prevent a false sense of security.
‘Long-term care’ is a generalized term that refers to the assisted care individuals may require in their homes, an assisted-living facility or a nursing home. ‘Skilled-nursing care’ is a specific term used when that assistance must be provided by a licensed or registered nurse.
‘Long-term care’ includes the need for both custodial care and skilled-nursing care. ‘Skilled-nursing care’ does NOT include the need for custodial care. That’s the issue that creates the Long Term Nightmare.
For instance, if someone needs assistance because they can’t bathe, cook or dress themselves, they need custodial care. If someone has dementia and needs to be supervised, that is referred to as custodial care. If someone needs intravenous fluids (IV), they need skilled-nursing care because it cannot be administered by anyone else. Custodial care can be done by a family member. Skilled-nursing care is provided by licensed nurses.
The assistance provided by Medicare to those over 65 is only for skilled-nursing care. Typically this care occurs in a nursing home while the patient recovers from a surgery or illness that required at least a 3-day hospital stay. If the hospital stay didn’t occur, Medicare won’t pay for it. Even then, Medicare will only cover roughly 100 days.
Medicare does NOT provide any coverage when the assistance needed is custodial. Those costs must be paid entirely by the individual and/or their family. Medicare will not pay for stays in an assisted-living facility.
For the impoverished who qualify, Medicaid will cover nursing home costs. But the number of Medicaid beds is limited and recipients may face long waiting periods to get into such a facility.
Sometimes Medicaid will cover assisted living facilities and home health care, which includes custodial care. But these benefits are harder to receive reimbursement for. Rules and benefits vary from state to state. The bottom line for those depending on Medicaid is that you will be left with few options and limited care.
The greatest need for long-term care as we age is often custodial in nature. At some point, we are all likely to need help with our medications, cooking and cleaning. Worse, we may be suffering from the chronic effects of a long term illness. Even though we may not be able to care for ourselves as a result, Medicare will not pay for any help unless it requires a skilled nurse. They will, however, cover hospice care for terminally ill patients.
Many families find themselves caught in the nightmare of having to provide the care that isn’t covered by insurance or the government. This problem will not go away—the government is likely to cover even less care in the future. Take action now.
In a future article, I will talk about the long-term care coverage provided by Medicaid and what is required to qualify for it. Then I will outline steps you can take to avoid a Long-Term Nightmare.

Insurance - The Real Reason For Long -Term Care Insurance

2007-05-15T05:25:00.001-07:00

Opportunity Cost and Your Long Term Care Decision

2007-05-15T05:24:00.002-07:00

The Care You Pay For Both The Company And Clients

2007-05-15T05:24:00.001-07:00

AARP Long Term Care Insurance

2007-05-15T05:23:00.002-07:00

The Guide to Long Term Care Insurance

2007-05-15T05:23:00.001-07:00

Critical Claims Statistics for Critical Illness Cover

2007-05-15T05:22:00.000-07:00

Which Long Term Care Insurance Company Should I Choose?

2007-05-08T04:53:00.001-07:00

Choosing the right insurance company for your LTCi policy is a very important step, and there are several top quality companies that have proven track records in the field of long term care.
The truth is that every company has their own proprietary method of determining policy features, premiums, and health issue qualifications.
Some policies cost 10% - 50% more if you are taking blood pressure medications. Others don't.
Some policies are very strict about rating overweight folks. Others aren't so strict.
Some companies charge up to 35% more for someone who has used tobacco. Others are much more lenient in this area.
The point is that there is a great difference in LTCi policies from one company to the next, especially depending on your health history and habits. That is why it's best to find the company that is best for your particular situation and not to view LTCi as just a cookie-cutter commodity.
This is also why it is such a good idea to have a clear idea of what LTCi policy foundational features are most important to you BEFORE you go shopping, since you will be able to make a better "apples to apples" comparison between companies if you do.
You should also certainly look for a company that is rated very highly with regard to it's financial future. Most financially stable and healthy insurance companies will have at least an "A" rating by the major insurance ratings services such as A. M. Best, Standard & Poors, and others, and they would therefore be considered a solid candidate for your business.
Of course, having an insurance agent that is thoroughly knowledgeable in the field of long term care insurance is a real asset too. It is wise to look for those that have the CLTC designation which stands for "Certified in Long Term Care". They can help you find and select an insurance carrier that will best fit your needs because of the extra training and education they have received in this field.

Who Needs Long Term Care Insurance?

2007-05-08T04:52:00.002-07:00

With all of the statistics that are commonly used regarding the need for long term care, it would seem at first glance that almost everyone should have long term care insurance to be adequately protected from such a serious risk.
For instance, consider the statistic that almost half of all seniors over 65 will need some form of long term care. In addition, consider that the average cost of staying in a nursing home can run more than $80,000 a year in many areas, and is increasing in cost at a rate well over five percent annually. Doesn't these kind of sobering facts clearly indicate that everyone should be buying long term care insurance?
Actually, the answer to that question is "not necessarily"!
There are certain situations where LTCi may not be the best choice at all. Let's discuss who should and should not be buying long term care insurance then.
A common myth is that LTCi is for those with very little money. But the truth is that those who have very low income and little savings can easily qualify for state-funded care instead, so LTCi is just not necessary. In fact , LTCi is mainly for those that have enough income or assets that they must be protected from the risk that a prolonged illness requiring custodial care could represent.
The National Association of Insurance Commissioners suggests the following guidelines for LTCi applicants: (1) retirement income should be at least $20,000, and (2) they should have assets of at least $30,000, not including their home and auto.
For those that have countable assets that exceed Medicaid limits, but not enough to sustain paying for a prolonged nursing home stay out of their own pocket, LTCi will most likely be a wise investment. For these folks, having to come up with $7,000 or more each month for nursing home costs, would place a heavy drain on their savings and work a financial hardship that may be especially difficult for the community spouse. Investing in LTCi can help secure independence for these folks, and protect cherished assets for the spouse and/or children.
Then there are the small minority that have enough assets and income that they can comfortably pay for nursing home care for a 3-5 year stay and still provide for the spouse in the meantime with no hardship. This group may elect to simply forego LTCi and rely on their own savings should such a need arise.
However, many of these folks are also seeing the wisdom of investing in LTCi anyway, because they are able to leverage the money that they invest in such a policy to buy a much higher level of protection than would be possible by just using their own funds, and protect their estate from a serious risk at the same time.
So, as you can see, there is no one-size-fits-all solution for everyone when it comes to LTCi. But there are certain situations where investing in a good LTCi policy can be very prudent, and in other cases it may simply be an option to consider. And for those with little income or savings to have to protect, it is not necessary at all.

The Five Foundational Features Of A Good Long Term Care Insurance Policy

2007-05-08T04:52:00.001-07:00

At first glance, long term care insurance(LTCi) can seem to be confusing and complicated. However all good LTCi policies have five foundational features that are the core of the protection and if you understand these five features, you will be able to assemble a policy that makes sense and is easy to comprehend.
Of course, there are several secondary or ancillary features that can be added on, and here is often where the confusion sets in. In fact, I often see folks spend so much time on the secondary policy benefits that they don't give the foundational features the attention that they deserve.
Here though are the five benefit features that you should know about and look for in a good LTCi policy:
1. The Policy Care Setting - this determines whether your care will be covered and paid for if you are in a facility, at home, or a combination of both. These days, many policies that are on the market offer "Integrated" protection, meaning that it pays for both home and facility care.
2. The Daily Benefit - this is the amount per day that the policy will pay in benefits for care received. To arrive at this figure it is often a good idea to find out what the average cost of care is per day in most facilities in your area and use that as a starting point and guide for the Daily Benefit since you want to be sure to cover at least that cost should the need arise.
3. The Inflation Benefit - this helps keep your policy current with the rising costs of health care in this field so that you will have sufficient coverage when you have to actually use the policy even if it is several years from now.
4. The Benefit Period - this is the number of days that the policy will pay out benefits to you when the need for care arises. Usually this benefit is listed as 3, 4, 5, 6 or more years, or even for a person's lifetime. Obviously, the longer the coverage the more expensive the policy.
5. The Elimination Period - this is the number of days that you agree to pay for care out of your own pocket before the policy will kick in and start paying for care for you from then on. The most common choices are 30, 60, 90 or even 180 days. The more days that you pay for from your own funds the less expensive the policy premiums will usually be.
These five foundational features make up the lion's share of the coverage that you receive under most LTCi policies, so it makes sense to become familiar with them more so than any other optional ancillary benefits. Once you have the foundation of your policy's coverage set you can enlist the help of a well-qualified LTCi agent to explore any secondary features that may be helpful to consider.

Who Benefits Most From Long Term Care Insurance?

2007-05-08T04:51:00.002-07:00

There are many misconceptions about long term care insurance(LTCi), and one of the notions that is often at odds with reality is that the person who receives care from the policy will benefit most from it. Of course, if a person is single and has no other family or friends to help provide care in the event that a long term illness should arise, then no doubt they will benefit most from the policy.
But in most cases, an investment is made in LTCi by folks who do have family and/or friends that conceivably could provide at least some level of care if needed. And in these cases, an argument could be made that those who will benefit most are the loved ones who are not suddenly and unexpectedly thrust into the role of caregiver with very little training and preparation.
Being a caregiver can be a demanding and difficult experience at best for most people. Unfortunately, nothing quite prepares us for having to care for the needs of another grown adult when they are no longer capable of doing so for themselves, if we have not already been trained for such a situation.
According to a 1999 report from the National Council On Aging, 80% of all long term care is provided by family members, two-thirds of whom may still be working either full or part-time. A 2003 survey of informal care by the National Alliance for Caregiving revealed that 62% of the caregivers are married, 41% still have children under 18 at home, 67% reported providing care between 8 and 20 hours each week, the average length of caregiving is 4.5 years, and 73% of caregivers listed prayer as the best way to cope with the stress and sadness while providing care.
Statistics on the effect that providing long term care can have on caregivers show that in many cases the caregivers eventually become almost as sick as those that they have been caring for, and many never fully recover from the effects of such devoted care.
In view of this, doesn't it make sense that those that can afford to provide for their own care financially, make an effort to do so, if for no other reason than out of love and concern for those around them that they care for most?
LTCi then helps make sure that there are enough funds available to avoid placing an undue burden on any one person or group of loved ones or friends. It enables you to be able to continue to enjoy the time you spend in their company, and they can enjoy visiting with you without having the extra pressure and stress that being a caregiver brings with it.

Long Term Care Insurance – Important Decision for the Future

2007-05-08T04:51:00.001-07:00

The decision to purchase long term care insurance is a very important financial decision that should not be rushed. Purchasing long term care insurance is a serious consideration with the ever rising cost of home health care and nursing home care. The main reason to purchase long term care insurance is to avoid being a burden to loved ones and also depleting all your financial assets before you die.
Long term care insurance is not just for older people, accident or major illness can require extended care and financial resources. The best way to get cheap long term care insurance is to buy it when you are young and before you have any major physical problems. Long term care insurance is nursing home and in-home care insurance.
One of the greatest risks faced by America's elderly is the need for long-term care. Unfortunately, by the time most people need long term care, the time to purchase insurance has long passed. There are basically three ways to fund your long-term care needs: self-insure, qualify for Medicaid, or obtain long-term care insurance. The costs of long-term care vary widely. Now is the time to get more information about long term care insurance and find a plan to fit your needs. First, one should gather information on long term care insurance. Online service is a great way to research long term care policies and company offerings. Multiple quotes and same type comparisons are a necessity. Be sure to explore the qualifications sections of each policy as not all are equal. Inflation protection is also needed in your policy with the explosive rise in health care costs.
The cost of long term care insurance depends on your age, the benefits you choose, the length of coverage and other factors. Rather than spending $40000 to $80000 a year on average for long term nursing home care, you can spend a fraction of that cost for a long-term care insurance policy. With the rising cost of long-term care, it's important to start planning now for your future health care needs. Home care can cost $12000 or more per year (HIAA, Guide to Long Term Care insurance, 1999).
If long term care insurance is affordable for you, you should definitely consider transferring that risk to the insurance company. Long term care insurance is designed to help pay for many types of long-term care, including both skilled nursing care and community based care. Long term care insurance is an important financial planning tool, and it's important to apply while you're still healthy.

Three Ways to Buy Long Term Care Without Paying Premiums Out of Your Pocket

2007-05-08T04:50:00.002-07:00

Facts You Need to Know About Health Insurance

2007-05-08T04:50:00.001-07:00

Florida Long Term Care Insurance

2007-05-08T04:49:00.002-07:00

Insurance - Understanding Long-Term Care Insurance

2007-05-08T04:49:00.001-07:00

Insurance - Long Term Nightmare

2007-05-08T04:47:00.000-07:00

Insurance - Long Term Nightmare

2007-05-08T04:45:00.000-07:00

Insurance - The Real Reason For Long -Term Care Insurance

2007-05-08T04:44:00.000-07:00