Archive | May 2014

How to pay $6,000 or more a month for long term care.

 

The financial challenge brought about by the increasing cost of long-term care insurance is one of the major reason why it is one of the most ignored annuity. If we are going to take a closer look and study how long-term care insurance works, we might be able to realize that the benefits far outweigh the cost and cons of buying ltci. The amount of money required to purchase insurance for long-term care is typically less than the amount of money needed to pay for ltc expense.  As a result, you still have money to leave to your heirs or family members. LTCI is a wonderful product, however, people are misguided, thus, it should be a responsibility for every individual particularly the baby boomers to educate themselves about the impact of long-term care.

Partnership for Long Term Care

As insurance brokers we hear this all the time “I’ll invest the money instead of paying premiums for insurance.”

For every $1,000 of monthly retirement income you want to generate  from your own savings, you will need about $230,000 in assets,  according to the Schwab Center for Investment Research. 

For example, if you want $3,000 a month, or $36,000 a year, you would  need savings of $690,000. That’s a conservative estimate, assuming that you earn 5.2% on your investments and live off the earnings without dipping into the principal.

For $6,000 a month you will need at least $1.3 million. Then there’s living expenses for spouse and family, maybe another $4,000 a month. You will then need over $2 million.

A $3,000 a month benefit policy might cost $1,000-$3,000 a year for the premium, depending on age, health and other benefit options chosen. The $3,000 a month benfit policy would include inflation protection that…

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Long-Term Care Insurance – Delving in to Possible Future Situations

 

As more and more people think that they do not need long term health care insurance, they fail to notice that it will do them more harm than good. People think that this kind of insurance is only for people who want to have a luxurious life in the future, and that it is only for people who earn significantly higher than the average. On the contrary, US Department of Health and Human Services says that 70% people will need long term care above the age of 65.

 

Since mortality rate nowadays is higher than those of before, people will live longer, hence, will need more help from other people when they cannot do basic everyday tasks anymore. And sometimes, assistance and care needed isn’t free at all. There and there will always be expenses such as the payment if you need to go to the doctor for a check-up, the payment for the caregiver you are hiring, the payment for the facilities, and even the expense for your transportation.

 

If you haven’t planned for your future yet, are you be willing to sacrifice and allocate your money and other assets to health-related and long term care expenses? Will your assets and out-of-pocket money be enough to cover all the expenses for the longevity of the years you will live post-retirement age? Do you think that you will be able to pay for the other expenses brought by daily living and of the old age at the same time?

 

A Look at the Long Term Care Insurance

 

Long-term care insurance is the service given to elderly people – the seniors – that are basically home or community-based. It is a long term care that centers on the assistance of the basic daily activities such as moving, eating, dressing, using the toilet, and taking a bath. Since older people get weak faster than they were younger, they, more often than not, need more assistance to perform simple tasks.

 

Almost everybody reaches this stage in life wherein people cannot move freely and easily anymore like they used to. Sometimes, even more complications regarding the health matters arise from this condition which makes a person’s life even more complicated than it already is. That is why you must start early in planning what to do in these kinds of situations so to avoid rush decisions that could bring you even more problems than you could handle at the time.

 

Ideally, you should start saving up and investing in long term care insurance when you still have the time, energy, and resources that you will need. It is when you are younger that you are farther and less prone to have sicknesses and complications that will affect your health, that is if you have a balance diet, well-fitted and in good health. This is the ideal time to start planning because you could still decide on how your life will go about, figure out what kind of long term care you will need, and be able to allocate your properties and resources where you want them to be designated.

 

Think about your properties and the assets that you have presently. Mind your health and age and see what will you or your family need someday and prepare for it. Mull over purchasing a long term health care for your future and see how much difference it can make.

 

Private Home Care Offers Affordable Alternative

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Home health care is preferred by majority of long-term care recipients due to the incomparable freedom and comfort. In addition, the greatest benefit that home care provides is the companionship of family members and loved ones. Home care is also the most affordable of all long-term care settings. Infolongtermcare provides few more reasons why home care is more beneficial, take a look here for practical advantages of home care

Claude Pepper Center

With the costs of long-term care rising, private homes in Florida can offer a more intimate feel while potentially saving more money than traditional options such as nursing homes or assisted living facilities.

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Photo credit: Universal Pops. Easton-Hancock House. Flickr Creative Commons.

Barbara Peters Smith. Private-home care could become more common for elders. Herald-Tribune. Jan 23, 2014:

“And this informal business model could prove popular in the next decade for baby boomers retiring to Florida with experience in geriatric care — and perhaps not enough money to afford the kind of home they’d like to own.

As with the burgeoning home health care industry, the entry of more providers into this field — particularly without oversight — expands the potential for abuse.

“It’s pretty much part of the landscape, and it’s going to be growing,” says Larry Polivka, director of the Claude Pepper Center for aging studies at…

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Partnership Policy: Collaboration between Long Term Care Companies and the Government

Medicaid is a program set by the government that specifically tackles and provides long term care needs. However, this program has an asset level requirement that is quite low. This means that your assets have to be nearly exhausted to qualify. The tendency is for you to spend down in order to be given benefits. That was the case until the government started pairing up with long term care companies.

This collaboration between the government and the different private insurance providers paved the way for a new type of long term care insurance—the partnership policy. If you sign up for this, you can protect your assets and still qualify for Medicaid.

 

Before partnership policies came into picture, buyers of long term care insurance were to choose between a reimbursement policy and an indemnity policy.

 

In a reimbursement policy, the insurer will pay off the exact amount that you have incurred for care and expenses. What remains of your maximum benefit will be returned to your pool to be used for other claims in the future. Meanwhile, an indemnity policy pays off your maximum benefit regardless of the actual amount of your expenses. You can use what remains of your benefits any way you want.

 

Back then, most people would opt for the indemnity policy, however, this type costs more than a reimbursement policy. Those with financial limitations have no choice but to purchase a reimbursement policy with the thinking that at least, they were covered with insurance.

 

But with the onset of partnership policy, people are given more options; thanks to the tie-up between long term care companies and the government.

 

Partnership policy originated in 4 states—California, Connecticut, Indiana and New York, but due to the Deficit Reduction Act of 2005, this type of policy has been made available in all 50 states.

 

Basically, you need to reside in the state where you wish to receive care in order to qualify. Furthermore, your policy needs to be protected against inflation, too. Most policies have this feature so this requirement is not hard to meet.

 

Medicaid Asset Protection is the main feature of a partnership policy. It provides a shield to a portion of your asset that amounts to your total benefits. Say your policy’s maximum benefit is at $300,000, in effect, it protects $300,000 worth of your assets against Medicaid’s asset boundaries. You can be qualified to claim Medicaid benefits after you have utilized your policy’s benefits.

 

A partnership policy offers a win-win solution when it comes to getting covered for long term care. First, you get the benefits that a traditional policy has. More so, you would not be anxious should you need more care after you have claimed your benefits as you can still be covered with Medicaid. Most importantly, you get to preserve your assets. Assets that you toiled for and intend to pass on to your loved ones or heirs.

 

Long term care is a national issue that needs to be dealt with. It’s good to know that it is being addressed with the best efforts. Though there’s still room to improve when it comes to this issue, this tie-up between long term care companies and the government can be considered as a good start.

How to evaluate a long-term care facility for you or a loved one

When there is a need to move family members or loved ones into a long-term care facility, the first challenge we face is choosing the right facility. The usual procedure when choosing a long-term care facility is to check which among the different settings will suit the needs of our loved ones, the next is visiting the facility to make sure that the residents there are well taken cared of. However the biggest challenge that we face is convincing our loved ones to move out of their homes and move into a long-term care facility. It takes enormous effort to be able to convince them because a lot of long-term care recipients dealt with anxiety due to uncertainty with living conditions there.

Sources:

http://www.infolongtermcare.org/ease-the-transition-from-home-to-ltc-facility/

http://www.kiplinger.com/article/insurance/T013-C000-S002-choose-the-right-long-term-care-facility.html

Do The Right Thing Insurance

Comfortable, home-like living spaces, services & amenities (including wifi) are among the most important things to consider. What type of training for cleanliness and reduced exposure to infection is provided to staff? Is the staff helpful, friendly and caring?

This brief article/survey makes some valid points for us to think about and is worth the read.

Click here for the brief.

Nurse Aid

If you find my information helpful, I would appreciate you spreading the word by liking, commenting and sharing this with your friends and/or coworkers.

I will also help review your life insurance policy in any state of the US…see below.

Are you paying too much for your life insurance? Have you had your life insurance checked up? Please click here – this site is a must see.

I would graciously appreciate your liking and sharing my Facebook page.

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Families providing care

When it comes to caregiving, it is always our first choice to rely on family members to provide care for us. Whenever the need for long-term care arises, infolongtermcare.org notes that American families prefer family and home caregiver rather than sending loved ones to long-term care facilities. According to Department of Health and Human Services, there are more than 65.7 million Americans providing care for an aging, ill or disables loved ones. Most of those involved are adult children who feel the need to give back to their parents who raised them, and one of things they can do to show their love is to show their sincere concern by personally providing the care they needed.

Daniel G. Alcorn (518) 346-2115

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39% of U.S. adults care for someone with significant health issues, up from 30% in 2010.

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Finding the Best Long Term Care Insurance

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Acquiring the best long term care insurance depends on the personal need of the people who want to purchase it. There are different long term care insurance policies and each and every one of them could be changed according to the needs of the person. Say you have a good health state and are well fitted but it is in your family lineage to have heart disease then you probably will need long term care in the future.

 

Investing in long term care insurance would be good for you so in case the heart disease strikes you, you will be ready and you will not have any more additional problems, regarding your health concerns, apart from the sickness you have. You will have the budget to get long term care that you need because your insurance will cover the expenses. You could also have your regular check-ups, support and assistance because it is included in your long term care insurance policy.

 

Since the policy could be modified to cater to your needs, you could also indicate in the long term care insurance policy how long you want to receive your long term care. You could specify the duration of time that you will need long term care. It will shorten the period of your long term care compared to receiving it the rest of your life after retirement age, but it lessens the expenses that you will have to pay for the long term care. If it seems that you will not need long term care that much, you could limit the long term care you purchase and make do without it for the other times. Remember that long term care is for assistance and treatment, and if you could perform tasks a little better after, or have someone else to help you without paying them, you could opt not to have it anymore.

 

Next is you also have to take note at what age you will have to start paying for the long term care insurance that you want. You could start surveying at a very early age but if you try to purchase one, some insurers might turn you down. It is because you have to qualify in the health requirements of long term care insurance. The insurer should be aware of you and your family’s medical history and your lifestyle which could affect your health as you grow older. You could read up or ask an agent regarding the matters of their long term care insurance and what qualifications they have.

 

In purchasing long term care insurance, the policies should not be compared to other people. Every person has different health state, lifestyle, medical background, and history of illnesses in their family, if there is any. Every person has different needs and each will be attended to differently as well. In getting the best long term care insurance there is, you always have to think of yourself, your needs, your health state, your lifestyle, and the budget that you have in buying the long term care insurance. Knowing what you need will limit the expenses and will allow you to save more and avoid spending on what you don’t really need.

 

References:

http://www.aaltci.org/long-term-care-insurance/learning-center/best-age-to-buy-long-term-care-insurance.php/

http://www.infolongtermcare.org/long-term-care-insurance-information/

http://www.rd.com/health/wellness/understand-your-genetic-heart-disease-factors/

Help! My LTC Insurance Premium Is Going Up

panicking

 

One of the challenges faced by long-term care insurance policy holder is the increase in ltci rates. A lot of people are on the verge of cancelling their policy because they think they can no longer afford it. However, cancelling your policy is a waste of money, and knowing that there is a great chance that you will be needing long-term care sooner or later, it can cost you your lifetime savings. There are ways on how to deal with climbing long-term care insurance rate rather than cancel you policies. Also, cancelling your policy and getting a new one could mean higher premiums because your age is a factor that affects the cost of ltci. You may opt to deal with the increase, you could either shorten your benefit period, lessen your daily benefit, lower the inflation rate or  take advantage of shared care rider if you have a spouse. In the end, keeping your ltci policy will still be worth it

The Long Term Care Guy Blog

Inflation, you can’t live with it, and economists say we can’t live without it.  But when you get a letter telling you that the cost of something you are paying for is going up, it’s not a pleasant experience.

There are several things you can do to mitigate a price increase on your LTC insurance policy, but lets first look at why it is going up.  The early policies, from the 80’s and 90’s were offered while this industry was in its infancy.  The insurance companies made several mistakes.  One in your favor is that the companies have learned that couples (who love each other) will take care of each other longer before calling in the hired help.  Thus couples discounts are larger now than they used to be.

One assumption that turned out to be incorrect was that over time, the insurance companies thought some percentage of people would simply drop…

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Why Long Term Care Insurance Information is Important for You to Know

long term care

Nowadays, long term care insurance (LTCI) is definitely more costly than any other kinds of insurance. Thus, not everyone can afford getting it. Knowing some long term care insurance information might help you if you are really interested in getting a policy.

When you are young and you are interested in LTCI for your future needs, now is the best time to purchase a policy. This is because when the person is young the probability of him/her getting into a critical health condition or serious disease that will need long term care is in very low percentage. Consequently, it will be a lower annual premium for the person.

during the later years of your life is highly discouraged. Approval from your insurance company for your coverage will not be easy by then. The insurer needs to check first that you are physically and mentally healthy at the time of your purchase before it gives you complete long term care coverage.

Insurers based premiums on the age of the policyholders. In other words, age plays an important factor in determining how much your premium will be. The good news is that some companies give really good discounts. This is especially when you intended to get a policy not only for yourself but for your other family members. However, you really need to study their offer and how it will work for you. Reviewing long term care insurance information you know and their policy they presented you will really matter.

LTCI is an investment everyone is suggested to have. No one knows what will happen in the future and it is best that you are prepared for it. On the other hand, one should check his/her financial capabilities first before going into this policy. You definitely want to make an assurance that it will not cause you trouble with your finances later on.

It is best to assess one’s savings and assets first before making a decision to purchase a policy.  Keep in mind that basic necessities such as food, water, clothing and housing are vital in one’s life and these things should be in one’s main priorities. However, if you think you can afford to pay the premium on a monthly or annual basis and still not getting into trouble with your budget, then you can go on.

LTCI is for security purposes and something to lean on during the later years in one’s life. Preparing to invest for it during at the young age will be an ideal way to do since the premium is much lower.  Having LTCI policy will surely make your life much easier during the later years of your life when your ability to take care of yourself is not the same as before. This is a good way to grow old as you know that you can rely on to something when the tough gets going. If this triggers you to get a policy, it is better to acquaint yourself with relavant long term care insurance information first.

Are those who do not buy long term care insurance psychic?

Aging is inevitable and longevity is an unforeseen circumstance, so no one really knows how long we are going to live. With the crisis on aging, there is a greater risk that we will be needing long-term care at one point in our lives. We often ignore this issue and hoped that we will stay healthy and will not be needing ltc services for the rest of our lives so we would have something – perhaps an amount of money to family. But what if the need arrives sooner that we expected? Are we prepared for the consequences – financial and emotional devastation? There is no use saving all those money if we will end up drained by paying care out of pocket. The cost of long-term care can deplete a modest amount of savings or even your lifetime savings. So be sure to plan early and wisely, consider long-term care insurance as a secure back up plan.

Guide to Long-Term Care blog

People who do not buy long term care insurance must be psychic because they act with the certainty of knowing in the future “it won’t happen to them.”

What do you want your lifestyle be like when you are elderly and need care?
Are you deciding the fate of your estate based on facts or wishfull thinking?

Nursing home

When asked where do they want their “estate” assets to go to people almost always say to their heirs.  But the reality they are ignoring is that 90% of estates will be spent in this order*:
1. Nursing home
2. IRS
3. Children
4. Grandchildren
5. Charity

Even in light of the above probability for their estate plus the fact that the US DHHS (Medicare/Medicaid) statistics show that 70% of us will need long term care, and insurance claims show that 72% of women will need care, people are still clinging to the idea that they do not need insurance. Have you ever seen…

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