Long Term Care Insurance | Insurance For Long Term Care Blog

The Ba Boomers and Long Term Care Insurance

December 2, 2011 By Insurance Expert Leave a Comment

Article by Obinna Heche

Not quite long, a new research by the American association of Life Insurers (ACLI) has revealed that baby boomers require to pay attention to the very genuine option they may possibly require long-term care. The logic being the increasing long-term care costs, Long-Term Care Insurance or Medicaid. Who will reimburse for Baby Boomers Long-Term Care? Sounds the alarm on a impending national long-term care crisis. More crucial, it is a call to action for persons to include long-term care in their retirement planning.

The research shows that a one-year stay in a nursing home averages almost ,000 for a exclusive room or more than ,000 for a semi-private room. By the year 2030, the same stay in a semi-private room will cost an estimated 0,000, more than tripling over the next 25 years. Majority of Americans cannot save a sufficient amount to cover these astronomical costs on their own. Americans are living longer than ever before. That is a pleasant news, but it has several risks. One of those risks is that many upcoming retirees will be facing enormous long-term care costs.

Indeed, this matter is of particular relevance to women because, generally, they tend to live longer than men. A 65 year-old woman has a 50 percent probability of wanting nursing home care in her lifetime, a cost that might potentially wipe out her retirement savings. The question now is what can be done? Life insurers suggest long-term care insurance. Long-term care insurance is a fundamental element of a sound financial strategy for retirement. It helps individuals maintain self-sufficiency in retirement if they require long-term care services.

On the other hand, long-term care policy holders do not have to depend mostly on government programs or their household to pay for care. Moreover, the product has evolved over the years. It now offers a broad range of services in a variety of settings. Some well recognized policies may include reimbursement for respite care, medical equipment, care coordination services and also home modification. Long-term care insurance provides retirement security to millions of Americans.

But the reality is that plenty of people deserve the protection it offers. With long-term care insurance as part of a retirement plan, majority of Americans are at this point better equipped to safeguard their life-long savings and maintain their standard of living. This is without doubt, a good development and a good news for everybody.

Long-Term Care Insurance FAQs

November 30, 2011 By Insurance Expert Leave a Comment

Article by Berna

Many people are confused of whether or not to get long-term care insurance. Most people think that they won’t need such insurance since they have personal savings to cover the costs, unaware of the drawbacks that could fall on their finances and lifestyle. Here are some of the FAQs you need to know about long- term care insurance:

Who needs long-term care insurance?

Anyone who wants to protect his or her savings against the high costs of long-term care should consider purchasing LTCi.

One troubling misconception that stuck on people’s mind is that long-term care is barely needed or it won’t be needed at all. Most people are also hesitant to plan for their long-term care for the belief that there are alternatives in everything. It’s only they realize the benefits of LTCi when they learned that their health insurance or Medicaid covers the first few weeks in the chosen facility.

Long-term care will be needed by anyone of no certain age or health. At any given moment, the long-term care landscape in America will change: the elderly will no longer comprised most of nursing beds, but anyone between the ages 18 and 64.

The verdict goes to the uninsured. They run the risk of losing their lifetime assets for a year of stay in long-term care facility. The adversities may come in between as your children and heirs will be ones to suffer your worst financial mistake. So the best way to dodge those unlikely events is by securing yourself with long-term care insurance.

How much does it cost?

There is no “one-size-fits-all” policy. The policy normally depends on the person’s age, health, and residence.

People with good health history can save from the premiums compared to those with medical records. For instance, a person with Alzheimer and other chronic illness will need more care and so the policy should cost higher. The price also varies from state to state. The rates in New Jersey and other metropolitan areas are obviously higher than the rural counterparts

Older policyholders receive much expensive premiums, but it is always more practical than paying out-of-pocket expenses. Anyone who assumes that LTC insurance is expensive doesn’t even realize how much he or she will shell out from personal savings.

Who should not buy long-term care insurance?Those with no means of paying the coverage, without assets to protect, and without family to pass their assets may need not apply for long-term care insurance, but they could qualify for Medicaid.

Some people with chronic illness feel that they won’t qualify for coverage due to their health condition. However, the only way to find out if you are qualified is to apply and see if you still qualify. There’s no harm from trying, so better try your luck.

A single person with no family assumes he/she doesn’t need coverage, but if he/she owns assets and needs care, LTCi will be needed.

How much nursing home costs?In 2008, the average cost of nursing home care nationally was ,000 per year. The costs differ in the statewide level. A private room in a nursing home in New York amounted to 5 a day the same year.

The prices for nursing homes increase every year. So how could an uninsured retain his or her assets without LTC insurance? Not only the nursing homes are expensive but also the home care. The rates for home health aides rise every year, making it depressing for the uninsured to cover the costs from personal finances.

Does Medicare pay long term care?

Unfortunately, only a small portion of long-term care expenses will be covered by Medicaid. You have to reach the poverty level first before qualifying for coverage. You must have 00 total assets, with no car, home, and personal resources.

Why Should I Bother Buying Long-Term Care Insurance?

November 29, 2011 By Insurance Expert Leave a Comment

Article by Berna

Why should I buy long-term care insurance? This is probably one of the issues bickered by most adults as they approach their mid 40s or 50s. Most people are uncertain of buying long-term care insurance; they would rather invest on car and real estate than on costly LTC premiums. Long-term care insurance can be expensive, but it is the best investment you’ll need to continue a dignified life as you age.

Buying long-term care secures your independence and dignity. Some people choose to spend all their assets on care, while others opt to put their money in trust. If you have zero assets, you will qualify for Medicaid coverage. You may take it seriously as luck, but sooner or later you’ll realize the misfortune of not saving for your long-term care. Medicaid pays for semi-private nursing home, but not all nursing homes admit Medicaid patients. Medicaid beneficiaries had taken a long qualification process before they received coverage for long term care. Qualifying for Medicaid coverage does not happen overnight, since most states have stringent rules for qualifying for Medicaid. Unfortunately, the majority of elders wish to receive care in their homes as much possible, but Medicaid cannot grant that wish.. Medicaid patients are forced to stay in nursing homes although they feel a bit unease of staying in a facility, where they are bathed or diapered together with other adults their age. With secured long-term care insurance, you won’t suffer the stress of taking few trips to your state’s Medicaid office or, worse, lose your assets to qualify for Medicaid program. Also, your insurance can help you decide on the type of facility should you wish to have. You’re not obliged to stay in Medicaid nursing homes and spend your entire life there; you have the option of getting care in the comfort of your home with less worry.

Married couples could bear the brunt of long-term care. If you are in dire need for long term care, your spouse may be compelled to hire a care giver. The rates for caregivers throughout the country are so expensive that can surely exhaust your finances. The budget to carry out the expenses for care-giving is likely to come from the combined income and assets of both couples. However, if the need for such care is extended, your conjugal assets and personal savings may come to nil. The savings that must have been appropriated for your future needs are squandered solely for lavish home care, although, in the first place, your insurance could have been used to cover the costs.

Also, many care-giving spouses use their own money for long-term care and forget everything about LTC insurance. If the care for a disabled or sick spouse takes long, this can cause disturbing effects on the physical and emotional health of the care-giving spouse. Insurance helps the care-giving spouse to provide quality care for the sick husband/wife and, at the same time, save money or assets for more important investments.

Having children or extended family does not guarantee that you will receive the expected level of care or respect from your loved ones. Expect the worst circumstances that could happen in your later years, and be prepared for it. Remember that your children will have their own lives someday and, the harsh truth is, you’ll come second to their priorities. Your children may find it hard to juggle their care-giving responsibilities and their personal commitments. With long-term care insurance, you are guaranteed that you’ll get quality care without or with less family involvement.

Long-Term Care Insurance Awareness Month television interview from member of the American Association for Long-Term Care Insurance (www.aaltci.org
Video Rating: 5 / 5

Filed Under: long term care insurance Tagged With: Bother, Buying, Care, Insurance, LongTerm, should

Dave Ramsey Gives Wrong Advice Regarding Long-Term Care Insurance Planning

November 28, 2011 By Insurance Expert Leave a Comment

Article by Jesse Slome

I am a big fan of the various radio hosts who ladle out practical financial advice. And, having listened to many of them for well over 50 years, some of their advice is well placed. But not all of it is accurate.

Recently Dave Ramsey advised his followers that long-term care insurance planning should begin at age 65.By recommending that specific age, Ramsey is doing a significant injustice to a large percentage of innocent followers.

Ramsey’s 15-second soundbite advice “start at 65″ sounds good. And, indeed one could say it make sense to start planning at what typically marks the beginning of retirement. After all, the cost of needing long-term care is the most significant risk to a secure retirement that people face.

But Ramsey is overlooking a most serious fact about long-term care insurance. Individuals must health qualify when applying for this protection. Or, more simply stated, insurers are selective in who they accept as clients. Applicants who have health issues are more likely to ultimately file claims. If insurers did not screen applicants, but rather accepted all comers, healthy applicants would bear the cost of the added overall risk.

So, when an individual applies for coverage, they will need to answer health and medical questions. Records from doctors may be requested.

This is the important fact that Dave Ramsey overlooks when advising people to start planning at age 65. According to independent research of over 155,000 applicants for individual long-term care insurance in 2009, some 23.0 percent (almost one in four) of those who actually applied for long-term care insurance were declined coverage for health reasons.

Only 14.0 percent of applicants between ages 50 to 59 were declined and less than one in 10 (9.5%) below age 50 were declined.

Keep in mind, these numbers reflect individuals who took the time to meet with an insurance professional, complete and submit an application for insurance protection. Insurance agents who know clients will definitely be declined won’t waste their tiome or the prospects.

So, I am very sorry Dave Ramsey has it wrong. The time to start planning for long-term care is when you have the most options. If one views long-term care insurance as one of those options, then the best time to apply is in one’s 50s. That is when you are still likely to health qualify.

Two final points for Ramsey to consider. Once one health qualifies for long-term care insurance, you can not be dropped by the insurer if and when your health changes. Secondly, insurers offer discounts to those applicants who are in better health. Some 46.0 percent of applicants between ages 50-to-59 qualified for this discount. For ages 60-to-69 the percentage was only 38.0 percent.

Facts every Dave Ramsey follower needs to know.

For factual information regarding long-term care planning visit the nation’s largest online consumer resource center http://www.aaltci.org/long-term-care-insurance/ hosted by the American Association for Long-Term Care Insurance http://www.aaltci.org .

Identifying Long Term Care Insurance Policies

November 23, 2011 By Insurance Expert Leave a Comment

Insurance companies offer different types of long term care insurance policies so that every buyer will have a choice. There is not a single long term care insurance (LTCI) policy that will solve everybody’s healthcare needs so one has to spend a good amount of time studying each product carefully to avoid wasting his money.

You can buy an individual comprehensive LTCI policy or avail the employer-sponsored group LTCI policy. The former has more health restrictions and this is exactly why individuals with preexisting conditions don’t attempt to apply for an individual LTCI policy anymore. They simply take advantage of the employer-sponsored policy despite its limited offerings because it won’t require them to submit medical records.

Now an individual long term care insurance policy can be in the form of reimbursement, indemnity, or partnership program.

With a reimbursement policy the insured will receive from his insurer the exact amount of dollars that he spent on care up to his policy’s maximum daily, weekly or monthly benefit amount.

If the expenses that he incurred exceed his maximum benefit amount, the insured will have to pay the excess amount out-of-pocket.

For example, your policy stipulates a maximum daily benefit of 0 but when you were admitted into a nursing home last month your daily expenses only totaled to 0. Upon submitting to your insurer the necessary nursing home receipts, you will get 0 from your policy benefits while the remaining shall be retained in your pool of benefits for your future use.

Individuals who are insured by a reimbursement policy have to furnish their insurer with official nursing home receipts that indicate the date that they were confined and the services they received.

Without these receipts they cannot reimburse their expenses.

Types of Long Term Care Insurance Policies

Reimbursement LTCI policies are preferred by most buyers because these are cheaper than the other kinds of LTCI policies.

Other people, however, who have more money to spare on annual premiums secure an indemnity policy because this type of LTCI policy allows them to be in full control of their benefits.

Indemnity LTCI policyholders will receive the exact amount of their maximum daily or monthly benefit regardless of their actual expenses on care. This type of policy does not require a policyholder to submit official receipts from the LTC facility that provided them care. Perhaps this is the reason majority of LTCI policyholders that have indemnity policies are in the home care setting.

For instance, a 75-year-old man cannot eat and bathe by himself so he has a home health aide who comes to his place every day to provide him with assistance in these two activities of daily living (ADL). He spends a total of daily for two hours of care but since his policy stipulates a maximum benefit amount of 0, the elderly guy receives this much from his insurer.

Let’s go to partnership LTCI policies. These types of long term care insurance policies will protect one’s assets from Medicaid’s spend down rule should he apply for Medicaid assistance after having exhausted his insurance benefits. This kind of policy is highly recommended and to find out why, contact your insurance agent.

15-minute version: Long-Term Care Insurance: Alternatives and Solutions by William Upson (15-min) longtermcarebooks.com What you need to know about Long Term Care Insurance. This video refers to the book: Long-Term Care Insurance: Alternatives and Solutions by William Upson How catastrophic medical bills can wipe out your retirement — and what to do about it right now! This book is designed to educate you about what to do before you become ill, or when you become seriously ill or disabled, what you should do. We urge you to consider how you will meet long-term care needs for yourself and your family. We have tried to provide you with as many options as possible on how to prepare for this potential crisis. Our goal is to see people preserve their assets while maintaining their freedom to choose the type of care that best meets their needs. This book explains what long-term care is and who may need it. It provides checklists to determine your individual needs. It provides guidelines on choosing a professional who can help you design a plan that will preserve the physical, emotional, and financial well being of you and your family. Please take the time to educate yourself and your family about long-term care. It may affect you when you least expect it. It could mean the difference between financial and emotional security or winding up in a government-mandated facility far from home and family. Scary? Yes! Only you can decide to plan for a secure future, but do it now …
Video Rating: 5 / 5

Filed Under: long term care insurance Tagged With: Care, Identifying, Insurance, Long, Policies, Term

Reducing Long Term Care Insurance Premiums

November 21, 2011 By Insurance Expert Leave a Comment

Many acknowledge the importance of planning for long term care but some of their options, such as long term care insurance (LTCI), would require them to allot a big amount of their hard earned money each year for the annual premiums. Here below find out how you can save on long term care insurance premiums without compromising your benefits.

As one goes past the age of 50 he faces a greater risk of paying higher LTCI premiums. It is for this very reason that everybody is advised to purchase a policy at a younger age. Most people, however, do not have the money to afford an LTCI policy and have to wait a little longer till their nest egg gets more secured before they can finally buy.

Unfortunately, it’s the waiting part that subjects an individual to expensive LTCI policies. Insurance companies are strict with their rules and regulations because even a minor slip can cost them in claims.

Now there are many senior citizens over 60 years old and still in the workforce who tried to clinch an individual policy despite their inkling that they will not get any company’s approval. True enough, some of them were declined while others were required to pay a higher premium.

Instead of going for the high premium, these senior folks opted for the group LTCI policies that were made available to them by their employers. According to them, if not for this type of coverage there is no way that they could’ve managed to come up with a decent plan for their future as most of them either have pre-existing conditions already or have started to manifest symptoms of a health disorder.

Had they opted for an individual LTCI policy, the will be forced to shell out ,000 to ,000 for the annual premium. Now thanks to their group policies they only have to pay a little over ,000 yearly.

Other Ways to Save on Long Term Care Insurance

Choosing the type of LTCI policy AND LTC QUOTES to buy is only way to save on annual premiums. Another factor that will determine the price of your policy is the benefit period because it determines the specific length of time that you will receive insurance coverage.

According to LTC experts, most people will require three years of care but there’s also a big population out there that will require a longer time. It is ideal to have a longer benefit period but this will take a lot of money.

Using eeny, meeny, miny, moe will not help you arrive at a good decision for your benefit period which can only be determined by two factors – your health condition and your budget.

If you take time to consult a licensed LTCI agent he will advise you to go to your physician so that you can have your present health condition checked and your family’s health history, as well. Some illnesses require five to 10 years of care while others a shorter period of time. By identifying accurately your future health care requirements you will be able to determine how long you will need LTCI coverage.

There are many other ways to save on long term care insurance so contact your LTCI representative today and learn about all these.

Filed Under: long term care insurance Tagged With: Care, Insurance, Long, Premiums, Reducing, Term

Frequently Asked Questions About Texas Long Term Care Insurance

November 20, 2011 By Insurance Expert Leave a Comment

Article by Noemi Weaver

Training from Brian Johnson, a top insurance producer. Where care is given/received. Financial Risk

Filed Under: long term care insurance Tagged With: About, Asked, Care, Frequently, Insurance, Long, Questions, Term, Texas

Options for Cheaper Long Term Care Insurance Policies

November 19, 2011 By Insurance Expert Leave a Comment

Article by ashley owens

There is no doubt that our needs and demands are keeping up with all the modern technologies and advancements that science has given us. But we must also realize that, at the end of the day, being comfortable, healthy, and cared for in life surpass the happiness that we may get from these gadgets and from the other material things that we can easily get if we really want to.

It would be a very wise move if, given the proper attention and consideration, one healthy, working individual put aside his eagerness to get a hand at the latest gadgets today and think about a much important and beneficial investment that he can use and take advantage of in the future. Purchasing a long term care ins is one example of a good investment that can relieve and lessen the burdens of the expensive rates and premiums of these policies in the next few years.

According to some professionals in the insurance industry, it is better to purchase a long term care insurance plan while the applicant is still young, financially-stable, and with no major health concerns. The reason behind this is that the interested applicant can avail of a long term care plan with a much lower premium rate than those who applied or purchased at an older or nearing retirement age. Also, an insurance purchased while the applicant is younger gets to enjoy the benefits of the inflation protection asset protection feature of his long term care plan.

Insurance providers have different long term care insurance policies and benefits. You can choose for a long term care insurance package that best suits your future medical and non-medical needs that is also affordable and conforms with your current income. If you think you cannot really afford a LTCi plan from a private insurance provider, you may check out the other available options for a cheaper long term care ins plan, such as that of long term care CLASS Act and Partnership program.

CLASS Act is the newest initiative from the government to help the residents avail of a cheap long term care plan by offering them low monthly premiums that can be paid out through salary deduction. With CLASS Act, individuals who were previously revoked of a long term care insurance application and those who belong below the poverty line is guaranteed qualified regardless of their present health conditions. All working individuals are automatically enrolled in CLASS Act but they can still back out if they want to do so.

Long Term Care insurance Partnership program, on the other hand, pays out the LTC expenses of the policy owner and still allows him to apply and qualify for Medicaid when his partnership policy has already reached its coverage limit. The partnership program also has inflation protection, Dollar-for-Dollar asset protection, and reciprocity standards. Reciprocity agreement lets your partnership plan from other states still be qualified and valid if you transferred to another state given that it also offer partnership program.

With these so many options and alternatives for acquiring a LTCi plan, it is but necessary that you take careful analysis and thorough understanding of the differences, advantages, and disadvantages of each. Keep in mind that it is not only about the amount of money you will spend but also of the stress-free and untroubled future that awaits you.

This video is from the Insurance Information Institute. For more information about insurance, go to the III Website at www.iii.org

Who Needs Partnership Long Term Care Insurance?

November 15, 2011 By Insurance Expert Leave a Comment

Article by shevon miller

Individuals who have accumulated a number of assets throughout the years they have been working need a long term care insurance partnership policy because this is the only way that they can protect their assets while ensuring themselves of quality long term health care.

Although you can opt for the reimbursement policy, which is the most common type of LTC insurance policy, or perhaps the indemnity policy you will have to make a good estimate as to how long you intend to receive care because once you have exhausted your policy benefits, you will be left with no choice but to pay out-of-pocket.

Paying LTC costs out-of-pocket is synonymous with bankruptcy considering the rates of long term care facilities these days. Good thing that this problem will never be encountered by partnership policyholders because the moment that their policy benefits have been wiped out by expenses they incur from home care, assisted living or nursing care they can apply anytime for Medicaid assistance to receive further care.

This LTCI policy feature is called the Medicaid Asset Protection which can only be found in the partnership program.

Relatively new compared to other LTCi policies, as it was only implemented in the early 90s, the partnership program was basically designed to help individuals receive quality health care without spending down their assets and at the same time help states trim Medicaid expenses.

According to studies, Medicaid has forked out a whopping 0 billion for nationwide LTC expenses. If this rate goes any higher, the government fears that every state’s Medicaid coffer will dry out in no time.

Legitimacy of a Long Term Care Insurance Partnership PolicyEven if you purchase a long term care insurance policy that is recognized by the partnership program, it will not be honored unless it meets the criteria of a partnership long term care insurance policies.

You can say that the long term care insurance policy you bought is partnership qualified if it was certified by the state, as this is an indication that your policy meets the requirements for a partnership program in terms of the minimum benefit period and inflation protection rider.

Aside from bearing those mentioned policy features, your partnership long term care insurance should have been issued after the date your state implemented the partnership program. If you want to upgrade your existing long term care insurance policy to a partnership, you have to inform the insurance firm from which it was purchased. Although you can apply for Medicaid assistance once you have exhausted your policy benefits, this does not make you instantly eligible for the health program. Your state’s Medicaid will have to check first if you meet the income requirement and if your health condition really requires further care.

Policyholders of the long term care insurance partnership policy are automatically covered by the reciprocity agreement which was formed by states participating in the partnership program. This means the asset disregard stipulated in your policy will be honored in the state you moved for as long as it is a member of the partnership program.

Long term care insurance information and how to buy from LTC insurance trade organization. St. Louis channel 5′s (ksdk) reporter Jennifer Blome interviews director of the American Association for Long Term Care Insurance.

Filed Under: long term care insurance Tagged With: Care, Insurance, Long, needs, Partnership, Term

Getting Long Term Care Insurance Information from the Leaders

November 14, 2011 By Insurance Expert Leave a Comment

Article by Chasey Smith

Many people acknowledge the fact that at some point in their lives they will require long term care due to a disability triggered by either an accident or a debilitating illness. Unfortunately, many of them still lack long term care insurance information.

That being the case, most of these Americans can only hope that their financial resources will be enough so they can fund the huge expenses which they could incur from LTC services.

Financial advisers, however, say only people who have assets totaling to a billion can afford to self-insure should they acquire a disability in the future and require long term care. Those who have assets that range from 0,000 to ,000,000 should consider other alternatives because self-insuring is definitely not one of their options.

Leaders in the long term care industry have been constantly advising the public, especially those who are heading towards their retirement, to consider a long term care insurance policy. This is basically their only passport to financial salvation.

Sure you have more apart from rental properties, livestock and 0,000 in the bank. That will somehow be enough if you’re receiving care at the moment. But if you’re looking 20 years down the road, that amount translates to mere loose change.

This is not a hyperbolic expression. It is a fact of life which we are about to experience if we don’t prepare for the future cost of long term care services which is predicted to double. If you think there’s a possibility that you’ll land in a nursing home in 2026, prepare 5,490 every month as cost of care would’ve increased twofold by that time.

Research shows that 75% of the total population of a nursing home in America is comprised of women and the reason behind this is simply because women live longer than men nowadays

According to general long term care insurance information disseminated by top LTCI vendors, after women have provided care for their husbands and parents who were struck by a terminal illness, they will be left alone and have no one to take care of them. This explains why they are the target market of most insurance companies offering long term care insurance policies.

This information, however, does not exempt men from securing LTCI policies. They need it as much as women do especially if they have numerous assets which they plan to pass on to their wives, children or grandchildren.

The partnership LTCI program has become popular among the upper class members of society since the new millennium ushered in. This type of LTCI product was initially conceptualized for the middle class so that they can save on annual premiums through a short benefit period, while managing to apply for Medicaid assistance to receive further care after having exhausted their policy benefits.

It didn’t take long for the upper class in society to pick up on the benefits that they can reap from this type of LTCI policy. Through the partnership program, they realized that they can protect the assets which they have worked so hard to accumulate from being wiped out by long term care expenses.

If you want to learn more about the partnership program, seek complete long term care insurance information from your reliable insurance agent or consult your state’s Department of Insurance.

Filed Under: long term care insurance Tagged With: Care, from, Getting, Information, Insurance, Leaders, Long, Term