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Is Long Term Care Insurance Important?

January 2, 2012 By Leave a Comment

Article by Marcia Cross

The scariest nightmare happens not in dreams but in reality. Have you ever asked yourself lately how your life will turn out in 10-20 years? Are you aware that the worst events could fall in later years? Just in time when you are old, frail, and unsecured.

As we get older, many of us develop common illnesses such as Alzheimer’s, diabetes, stroke, heart disease, and cancer. The biggest problem you will confront is the time when you can no longer care for yourself due to debilitating condition and flimsy physique, much worse is your incapability to finance your own care. The burden upon seeing your family suffer from paying the bill for your medications is disheartening: it kills you more than your sickness does. The money that should have been kept for your children or heirs only goes to expensive nursing homes and treatments. Though you have overflowing assets, they can only go to waste once long term care butts in.

There is federal program aimed at helping elders in long term care needs. Medicaid or Medi-cal (term in California) helps low-income Americans avail long term care services. However, the support from this publicly-funded program is not dependable or, better say, ineffectual. Although many Americans prefer home care, Medicaid does not support this type of setting and compels recipients to undergo nursing home care or assisted living. Unfortunately, many nursing homes throughout the country refuse patients under Medicaid or Medicare program. Also, some patients report that Medicaid only pays only for one to three months stay in the nursing home, the period outside that coverage must be shouldered by the patient. Long term care insurance fills the gap that government fails to provide. Many financial experts recommend purchasing long term care coverage between 40s or 50s that will pay for the person’s health and personal care services while under the chosen facility or care setting. The coverage will help the insured continue a dignified life while suffering from the constraints of old age, disability, and sickness. Basic long term care coverage includes cooking, cleaning, bathing, and many other, depending on the person’s needs.

Most of us see just what’s inside the box. We care only for the things that matters now and let fate control the circumstance that will fall in the future. So when we think of long term care insurance, we normally think of it as a gamble. Despite the pessimism on long term care insurance, LTCi proves to be one the most important life investments. Long term care insurance saves you from becoming bankrupt due to costly hospice and home care. This allows you to tap your money in paying for home care or assisted living care when you are no longer be able to care for yourself. The benefit pays off as it makes your financial security and independence possible. What’s more is the peace of mind that you will be staying in a desirable environment (much better than the shattered shelters where poor, old people stay) and age gracefully than the rest of the elders out there, without the guilt of ruining your family’s future.

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Why Long Term Care Insurance Is A Good Financial Investment?

January 1, 2012 By 1 Comment

Article by Jenny Nielsen

Most people do not perceive the risks of not insuring themselves from uncertain sickness and disability that may afflict them at some point in their lives. Lengthy stay in nursing homes and other rehabilitative care poses dangers to a person’s financial security, concretely if the costs of care become excruciatingly unaffordable.

According to the Department of Health and Human Services, people age 65 and older have 60 percent possibility of entering a nursing home. The risks fall greater on women than men. It is true then – if you visit a nursing home facility you will observe that most residents are comprise of women. However, both men and women have no escape in long term care. As science and technology advances our lives, we also extend the financial burden that will be shouldered by our families.

Others believe that “self-insuring” is a wise move to save on long term care. In reality, self-insuring is merely a selfish act to waste your earnings and assets that should have been saved for your children and family.

There are four fatal flaws that people think about long term care:* A person won’t catch any health problem until age 75 to make them eligible for long term care insurance* The cost of long term care insurance today is still the same in the next five years.* A person can save at least ,000 a year and earn at least five percent of their annual savings* They will not live longer than expected

Those assumptions are skewed in reality. Long term care, in the first place, is always expensive and continues to be expensive in the next couple of years. This means that becoming uninsured throughout your golden years only put financial stress on your part and your family.

The national annual average cost for nursing home care is ,000; the lowest in Louisiana with ,000, and the highest in New York with 0,000. Over the next 25 years, this rate will increase faster than the inflation rate as the shortage in nursing home workers agitate the heightening demand for LTC services that could double in few years.

Another reason why long term care insurance is a wise financial is because of the unavailability of strong health care program that will wane the problem with LTC.

Medicare is hailed as the nation’s saving grace for long term care, but this is not the a wise decision to rely solely on the program. Medicare partially covers the 100 days in nursing care, provided that the person has received hospital care for certain period. In fact, Medicare only pays the 20 days, and the remaining 80 days require a so-called Medicare supplement.

Medicaid, the nation’s main financer of long term care, provides limited assistance because it pays massive percentage of long term care. It is not a wise move to depend on Medicaid since it gives priority to the poor and requires the applicants with greater income to spend down or transfer their assets in order to qualify for coverage. Through this, The government has been trying to cut the reserves for long term care and encourage people to handle their own care through long term care insurance partnership.

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Women and Long Term Care

December 31, 2011 By 1 Comment

Article by Jenny Nielsen

There has been massive concern on the threats of long term care as the costs of LTC are purging elders and their families to poverty, and the risks put greater weight on women. This may sound flattering for some knowing that women outlive men but, in some instances, such as long term care, this can be threatening. Long term care will haunt women in their later years when, regardless of physical or mental illness, they will have to bathe a frail spouse and look after a nearly dying parent.

The study conducted by Genworth Financial gives much strength on the impact of long term care on women. The following are the company’s main findings: * Surveys say that there are about 23 million unpaid care providers in the United States, wherein seven in ten are women* Nearly one infive unpaid caregivers or 19 percent give continuous care up to at least 40 hours per week, 80 percent of those are women.* 44 percent of women age 65 and above are likely to need nursing home care versus the 24 percent of men Why women are at greater risks? First, women live longer than men; meaning, they will require prolonged care either in a nursing home or at home. They also tend to live alone, especially the divorced women. Second, women perform the care giving role for their families and loved ones and these responsibilities may continue even if they are already old and weak. Lastly, women who have been providing cares to loved ones are six times more likely to acquire illnesses than those without care giving responsibilities.

Does the government provide help? The government programs called Medicaid and Medicare mainly provide assistance to low-income groups, and the services they spare are just momentary. Medicare requires the person to receive care from a nursing home or a hospital for few weeks before the help commences. It is also not true that Medicare pays your entire stay in the facility; otherwise, Medicare pays the 20 days and then the next 80 days will be paid through a supplement. When the 100 days end, the person will be responsible for his or her own care and will be never again accepted. How about Medicaid? Medicaid is a program aims solely in helping the needy to avail long term care. So if you don’t belong to the low-income group, you will be forced to give away your assets to meet the spend down requirements of Medicaid.

The wealthy may opt to self insure since they have enough to fritter. However, the majority of middle-class Americans are on the verge of becoming severely impacted by long term care.

Do You Need Long Term Care Insurance? Remember that long term care insurance isn’t for everyone. There are so many considerations you should assess to know if this will give you the peace mind.1. How old are you? According to financial experts, the recommended age to get long term care insurance is during mid 40s or mid 50s – the age wherein you are free from pre-existing health problem.2. What is your net worth?If your asset amounts between ,000 and million, long term care insurance is a great way to secure your assets. However, if your net assets worth only ,000 and below, you may turn to Medicaid for assistance once your assets become depleted.3. Does your family have health history of chronic disease such as Alzheimer’s, multiple sclerosis, dementia, and etc?If you have a family history of chronic diseases, you are likely to acquire that disease that will require you to get long term care in the future. However, if you already manifest those illnesses, you may or may not qualify for long term care insurance.

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Choosing Long Term Care Insurance Policy and Company

December 29, 2011 By Leave a Comment

Article by Jenny Nielsen

Long term care insurance seems complicated and risky if you lack understanding on how it works and how it can affect you. You should be careful in deciding which long term care insurance policy you should use and which insurer should you trust to.

There are different types of types of long term care insurance policies, and the riders add up to its complexity. The policies are not fixed in terms of features and coverage because they are designed to tailor individual needs.

Individual long term care insurance policies cater to multiple LTC services such as nursing home care, assisted living, and home care. Premiums can be paid monthly, quarterly, semi-annual or annual.

Group plans are offered by many employers these days. This type of plan provides advantages to both employers and employees. The employees can get coverage regardless of a health condition, unlike with individual policies that cover only healthy individuals and require strict medical underwriting. On the other hand, employers can enjoy the tax advantages form their business.

Tax-qualified long term care insurance policies are offered by most companies. The Health Insurance Portability and Accountability Act or HIPAA created the tax-qualified LTC policies to determine the benefit eligibility. Over the years, the debate over tax-qualified versus non tax-qualified is ripe, meaning there is wide gap as to using the said policies. Many proponents see the disadvantage of tax-qualified in curtailing the benefit triggers, which make it cumbersome for many hopefuls to achieve coverage. Tax-qualified policies have stringent rules; one of this is the certification from a licensed health care practitioner for the eligibility. However, most financial experts recommend buying tax-qualified long term care insurance policies to enjoy the tax advantages of long term care insurance.

Meanwhile, choosing a good, or should I say the best, insurance carrier to ensure your money will go a long way. First, it is important to scrutinize the company’s financial strength. A company with less than years of claims experience is quite questionable. With such limited experience, how can the company conduct claims in 20 to 30 years from now. A company with good claims experience can ensure continuous claims in the future. Also, the current market environment and economy can affect many insurance companies. Our current market is not favourable enough for all the insurers to survive. It is only the experienced and successful companies who most likely stay alive in the cruel market, while small and inexperienced companies will find it hard to develop new products and strengthen their market reach. Second, pick a company that is strongly devoted to providing long term care insurance. They may be companies offering LTCi policies only to compete with others and amass money if the sales soar. A company that dedicated to its service develops resources to widen its LTC business, and has larger market reach that signals the longevity in the insurance industry. Last, check the company’s ratings to see if it is the right one for you. Companies that have excellent ratings are good finds because they are stable and decent.

Remember that long term care insurance is costly, so it is reasonable to check everything that might affect you in the long run.

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Knowing Long Term Care CLASS Act

December 28, 2011 By Leave a Comment

Article by Jessica Martinez

What is CLASS Act? This stands for Community Living Assistance Services and Support Act. This can be considered the first national and government facilitated Long Term Care insurance program. It focuses on the consumer financed insurance pool that is overseen by the trust fund from the government.

CLASS Act’s main goal is to lessen the role of Medicaid, which as we know, pays for more than 40% of all the personal care for the elderly and people with disability. Nowadays, it is reported that Medicaid spends more or less one third of its whole budget on Long Term Care. If you will sum it up, Medicaid spends more than 0 billion a year, and it will only increase as the population ages too.

The Long Term Care CLASS Act is the newest measure that the government is taking in these past few years to ensure and encourage people to plan for Long Term Care, and, also, to get a Long Term Care Insurance. In the past few years, the government is doing a lot of things to expand the private Long Term Care insurance by tying Long Term Care coverage more closely to Medicaid, by having government-funded marketing campaigns and tax incentives. The elements of the bill were adapted from Deficit Reduction Act that took the initiative to expand the Long Term Care through the said ways.

Sometimes, health issues are also big factors in getting your personal insurance. If you already have an existing disease or health problem, other traditional private Long Term Care insurance will not allow you to avail their services. So the government saw this loophole and grabbed the opportunity to offer LTC coverage with limited benefits regardless of your health status. The CLASS Act has developed this service to cater to working adults without the fear of not meeting the health qualification requirements.

The Long Term Care Community Living Assistance Services and Support Act will take effect on January 1, 2011, but will not be operational immediately or not be fully working until 2013 or later. The bill has already been signed into law by Pres. Obama, and it will go now directly to the Department of Health and Human Services, wherein the services of the program will be acted upon. Although the said effective date is on Jan, 2010, the Secretary has until 2012 to work on a benefit plan of the program. They said that it will take another five more years from that time before anyone can be entitled for their benefits.

In CLASS Act, the government created an administrative structure wherein the people who will avail the services of the CLASS Act will pay a monthly premium, and will only be entitled for the limited benefits for their Long Term Care needs after five years of paying premiums. This is different from other government programs because the benefits will not come from the money of the tax payers, but from voluntary participants in the said program. The government also made it clear that they can raise the premiums in the future if they’re having a hard time meeting the initial assumptions.

The CLASS Act looks promising to everyone, especially to those who already have existing health problems. They also have an affordable premium of per month for students and for people whose income is below the poverty line. The things that we have to remember before availing the program is that the predicted cost of the benefits of the program is 0-0 per month, and it’s higher that the currently charged for individual insurance for qualified buyers. Also, you still need to wait for five more years before you can be entitled to your benefits, and to think that those benefits are not yet clearly defined as of the moment.

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Long Term Care Planning

December 26, 2011 By Leave a Comment

Article by Jessica Martinez

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Introduction to Long-term care health insurance

December 25, 2011 By Leave a Comment

Long Term Care Insurance Comparisons

A long-term care insurance policy is indispensable if you are not able to perform the basic activities that are necessary in daily living including dressing, bathing, eating, continence and toileting. Long-term care insurance provides variety of services which help meet both the medical and non-medical need of people with a chronic illness or disability who cannot care for themselves for long periods of time. A long-term care insurance policy protects the policyholder from any type of medical emergencies in the future that may leave him incapacitated to perform the daily activities like bathing, dressing, toileting etc. Long-term care insurance provides you with proper care if you have a physical illness or disability, hands-on or stand-by assistance with your normal daily activities, such as eating or getting around.

Long-term care insurance – Why is it necessary? You can find wide range of long term care insurance deals available in the market with the help of various comparison websites that can help you fetch the lowest insurance premium.

long term care insurance quote is the best option available for the elderly people who can easily get themselves covered of all the risks that are not generally covered under Health care or Medicare plans. A Long-term care insurance policy has become an important tool especially for the people above 65 years of age in helping them to plan for their long-term care needs. Always compare long term care insurance policy features and coverage in addition to price in order to avail the best insurance policy.

Compare several long term care insurance quotes in a single go You should select the long-term care insurance policy that covers at least one year of home health care, or nursing home care coverage. It is advised that you get the multiple insurance quotes online with the comparison facility so that you obtain the best affordable long-term care insurance policy Online comparison of long term care insurance quotes can help you save bundle of time and money when fighting the right insurance solution. You can easily get to know the long term care insurance cost by giving the details of type of policy, zip code, age and health of applicant.

 

www.ltcfp.com — A leading impartial source of long term care insurance from multiple carriers…. In this video, Washington-based long term care insurance expert Philip Shields explains why all Americans need to do long term care planning, and most should consider long term care insurance to protect their assets and provide funds for care if and when the need arises. Philip W. Shields, CLTC Certified LTC Specialist since January 1996, is consistently one of the Northwest’s top LTC specialists. Request your free quotes or LTC consultation by calling Philip at 360.687.1838 or 503.939.4446. Philip Shields is licensed in Washington, Oregon, Idaho, Montana, and other states, and is the #1 specialist in the metro Portland, OR – Vancouver, WA area. Philip consults with people all over the greater Northwest. Because he is independently licensed with 12 of the leading carriers, Philip Shields can help you design the policy that will give you your best value, best financial rating and your best chance for being approved. Some of the carriers Philip represents include John Hancock, MetLife, Prudential, Allianz, MedAmerica and many others. Call Shields today for your free LTC quote and consultation.

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California Long Term Care Insurance Cost Information

December 23, 2011 By Leave a Comment

Article by Heather Myers

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Defining Long Term Care Insurance

December 22, 2011 By Leave a Comment

Article by Seth Molton

Although the benefits of long-term insurance are often discussed in many online and printed publications, most Americans have little knowledge on how this type of insurance exactly works and how long term care cost can affect them.

Statistics shows that more and more people in the United States are requiring long term care services every year. According to numerous studies, the probability of a spouse needing extended care is 70%, while single individuals are 40%. A research made by the U.S. Department of Health and Human Services shows that about 40% of Americans aged 65 and older have about 50% risk of entering a nursing institution. Meanwhile, the Health Insurance Association of America estimates that 12 million people may require LTCi by the year 2020.

What is long-term care insurance?

For the unacquainted, long term care insurance is a type of insurance policy that provides benefits for people who are chronically ill and need medical attention over a long period of time. When you buy LTCi, you buy benefits that can be used for various services such as hospice care, respite care and home care. Contrary to popular belief, it doesn’t only cater to the elderly or senior citizens. One may require LTCi if he is involved in a fatal accident or has a non-terminal illness that does not allow him to live self-reliantly and needs support with the normal activities of daily living.

What are the policy features and benefits?

Insurance policies vary in the type and amount of coverage provided. Most long term care policies cover nursing home care and services related to mental impairment and memory loss, including conditions such as Alzheimer’s disease. Also, policies can cover home and community-based services, including adult day care and at-home care.The benefits are usually expressed in the daily benefit amount and the period ahead. The daily amount refers to how much the policy will pay on a daily basis for facility-based care. A weekly or monthly benefit may also be available for home-based adult care.

How can you save money on long term care insurance?

Like other types of insurance, it helps a lot to pay for only the most serious or likely circumstances. Take note that there are different factors that affect LTCi cost or the amount of insurance premiums. One of them is the elimination period. It is basically the deductible or the number of days a policy holder is entitled for the services. In general, the longer the elimination period, the cheaper the policy, and vice versa. Most companies have the best deals for 90-day elimination periods. A policy with anything longer than 90 days, although much less costly, may not save you much for the extra risk you take on. Also, the younger the policy holder when he purchases the insurance, the lower the long term care cost becomes.

Long term care insurance can be very expensive, but it is an investment that will benefit the policy holder in the long run. This insurance can protect an individual and his family against extended medical expenses during retirement.

We are happy to welcome back our esteemed guest speaker, George Chamberlin, who has been conducting a series of Managing Your Money seminars for SDCCU®. George Chamberlin discussed steps you can take to help ensure your investment portfolio is right for you.
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A Quick Rundown of the Different Types of Long Term Care Insurance Policies

December 21, 2011 By Leave a Comment

Article by ashley owens

It is good to know that the need and value of having a Long Term Care insurance policy is finally being realized by some citizens. To date, over 10 million Americans own a LTC policy and thousands more are being informed and educated about the uses and benefits of it. With aggressive information campaign and continuous effort to stabilize the LTC insurance industry, it would not be surprising if more and more United States residents apply and be an LTC policy owner in the future.

But before you give in to the idea of buying LTCi, be sure that you understand very well how an LTC insurance plan works.

Long Term Care insurance policies cover medical and non-medical needs of the insured person, especially to those who suffer prolonged illnesses or diseases such as Alzheimer’s disease. These services may include, but not limited to, adult day care, rehabilitation and therapy, nursing home facilities, use of other medical facilities, homemaking services, and daily care from medical professionals. There are also different types of Long Term Care insurance policies which the interested applicant may choose from, depending on what he believes would cover his long term care needs in the future. Careful planning and thorough evaluation are needed in order to be able to decide on the perfect Long Term Care insurance plan for you. The first type of Long Term Care insurance policy is the Reimbursement Insurance Policy. This is the most common type among the three types of Long Term Care insurance policies. The insured individual will be given a reimbursement for the exact bill or amount of the long term care services that he used, but it must not exceed the allotted daily coverage of your policy. For example, your Long Term Care policy covers a daily expense of 0, but the actual amount that you use every day only costs 0, you will be given 0 as reimbursement daily. The remaining that you were not able to use will remain in the insurance pool and may be used to make the insurance coverage longer.

The Indemnity policy on the other hand is usually more expensive than a Reimbursement policy. With this policy, you will receive your daily benefit amount, whether or not the actual amount of care received exceeds your daily benefit cap. For example, you have a plan coverage for 0 a day and you are only able to use 0, you can keep the remaining . But if your plan pays for 0 maximum coverage for a day, and you use 0, you will be the one responsible in paying the excess .

Partnership Long Term Care insurance policy lets you apply and still qualify to receive benefits from Medicaid, regardless if the person has exceeded the highest required asset limit or if he has already exhausted his policy benefits. Participating states which utilize Partnership programs may have different rules and policies with regards to this type of LTC insurance plan but the condition for a benefit period and a certain minimum daily amount of benefits apply to all. Partnership policies also have tax deductions, asset disregard, reciprocity agreement, and inflation protection.

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