Tag Archive | long term care cost

I’m Going To Wait Before I Buy LTC Insurance

As most adviser and expert would say, when it comes to long-term care insurance, “Do not wait too long”. Waiting too long can have many negative effects on your application and your future as well. Your long-term care insurance premiums are much cheaper when you buy it while you’re young and healthy, there is lesser chance of being declined because as you age, your health declines as well, so if you wait too long, you might have develop a condition that will disqualify you from getting long-term care insurance. And if it is already too late for you to get one, how are you going to manage your finances once the need for care arises? A long-term care event can deplete even an ample amount of savings. As a result, you might not be able to get the quality care you need and want if you no longer have the funds to cover your long-term care expenses. Shop for long-term care insurance quotes from different companies so you have the options to compare and choose the best policy.

The Long Term Care Guy Blog

Why should a person buy LTC insurance at age 50, when they may not need care (typically) until age 80?  Why pay premiums all those years?  Who wants to spend money for 30 years of premiums.

Seems like a logical viewpoint, why start paying premiums now when it could be 30 years before you might need care.  As long as you stay healthy it’s a valid viewpoint.  If only you could guarantee that!

If you were 24 years old, with a Camaro or other expensive to insure car, and knew that the car insurance would be much less after your 25th birthday, would you wait?  It will only be a few months……..

HEALTH CAN CHANGE

Did you know that 40% of the people receiving LTC services in this country are between 18 and 64?  Many people go to the doctor every year for a check up and stay in good health, until the checkup where the doctor tells you…

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How Can LTC Insurance Help You Protect Your Assets?

ltc

Long-term care insurance, not only secure financing your future long-term care expenses, but also protects your assets so you will have something to pass on to your heirs and loved ones. Expensive as it may be, it is still easier to pay an affordable monthly premiums than to incur large out of pocket expense to pay for the cost of such services.  In the end, we will get to realize that the capital needed to pay for long-term care insurance is typically smaller than the amount of money needed to pay for the cost of long-term care.

Davis Financial Service

Ness Insurance and Annuity, LLC - Annuities, Life Insurance, Health Insurance, Medicare Supplements and Long-Term Care - Western Washington

Plan to create a pool of healthcare dollars that will grow in any market.

Provided by Jeffrey Davis

    

How will you pay for long term care? The sad fact is that most people don’t know the answer to that question. But a solution is available.

Many baby boomers are opting to make long term care coverage an important part of their retirement strategies. The reasons to get an LTC policy after age 50 are very compelling.

Your premium payments buy you access to a large pool of money which can be used to pay for long term care costs. By paying for LTC out of that pool of money, you can help to preserve your retirement savings and income.

The cost of assisted living or nursing home care alone could motivate you to pay for an LTC policy. Genworth Financial conducts a respected annual Cost of Care Survey…

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What We Don’t Know About Long Term Care – Is A Lot

The most common reason why people ignore the significance of long-term care planning is denial, majority of Americans think that they will not need any long-term care services. Another reason is the increasing cost of long-term care insurance premiums, not realizing that they might be incurring large out-of pocket expenses for ltc services. Most of the times, those who seek long-term care think about the cost of care only when the need arises and at this point, it is already too late to purchase a long-term care insurance because it is either you will be declined, or the cost of premium will be too high.

If we think of relying on spouses or children or other family members to provide care for us, think again, would you want to be a burden to your loved ones? You will leave them stressed and devastated not only physically but also emotionally and financially because caregiving is an enormous task. In addition, you will be leaving them broke because the cost of long-term care services are too high that it can drain even an ample amount of savings.

Relying on medicaid and medicare is not wise because medicare does not necessarily cover long-term care, while with medicaid, you have to spend down all your assets to become eligible. It doesn’t even assure that we will get quality care when we need it and where we need it.

The Long Term Care Guy Blog

Americans over 40 — in other words, us — are dangerously unaware of our likely need for long-term care when we age and woefully ignorant about the costs, according to a new poll of adults in midlife and beyond.

 
The telephone survey of 1,019 boomers over age 40 was conducted by the Associated Press-NORC Center for Public Affairs Research and financed by the non-profit SCAN Foundation, which supports research and other initiatives on aging and health care. It found that many older Americans had barely begun to think about their long-term care needs, nevermind put aside money to cover them. For example, nearly 31 percent of respondents said getting older was something they’d rather not think about.

Following are other highlights from the poll, along with advice available on Next Avenue to help you avoid falling short when the time comes.

Only 16 percent of…

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Getting Familiar with the Long Term Care Insurance Cost

 

Being in the know of the long term care insurance cost would be helpful when thinking about plans for you and your family’s future and ensuring issues, especially regarding financial matters. Keeping in mid the possibilities that could happen in one’s life, it would be reasonable if you are already looking for the possible long term care insurances and their costs available near your place. Most people needing long term care could actually have it at home which they usually prefer, since the nursing homes are primarily for people who have illnesses more severe that they really need to be attended to most of the time.

 

Though long term care insurance policies cover the expenses of the long term care, it is still up to you where you prefer to have the long term care, which would adjust with the other conditions and terms of the policy. The rates of the long term care differ in every service needed and place where it will be received. Though, it also depends on your health conditions to what long term care service will be available to you. Even though you cannot perform two or more activities of the daily life, your health conditions must still qualify to acquire the other services as well.

 

Regarding the long term care costs, there are some things that must be looked into when judging the expenses. There are the professionals who would provide the long term care needed, the facilities that will be used according to what you will need, and the place where you prefer to be – at your own home or a nursing home. It might be overwhelming to think about how you could pay for all of those things that you will need, but you have more time to think about it, especially if you start to prepare for it and think about it a few years before you even approach the retirement age.

 

Know that you will be paying long term care insurance and they will cover in the future the expenses that you will need to acquire. But getting an idea of the rates of the services offered isn’t really a bad thing. Knowing the place where you want to get the long term care has also a great impact on the price you are going to pay. For an example, according to http://www.forbes.com, home health aides in Louisiana costs $9 an hour but $19 in New Hampshire. While according to http://www.longtermcare.info, in 2010, it costs about $205 per day in a semi-private room in a nursing home and about $229 in a private room. The homemaker services costs $21 per hour and it costs $67 per day in an adult day health care center.

 

The other rates will also vary depending on the duration of the care that you need. Some also consider the time of day and if there are any extra services that should be provided for you by the long term care.

 

But when thinking of computing/paying the long term care insurance cost, do not forget that there is the concept of inflation that should also be thought of since the prices are ever changing and it could affect the investment that you are trying to purchase.

 

Source:

 

http://www.forbes.com/sites/howardgleckman/2011/10/25/the-rising-cost-of-long-term-care-services/

http://www.medicare.gov/longtermcare/static/TypesOverview.asp

http://longtermcare.gov/costs-how-to-pay/costs-of-care/

http://www.forbes.com/sites/howardgleckman/2013/05/22/why-baby-boomers-need-to-get-real-about-health-and-long-term-care-costs-in-retirement/

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.

 

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.

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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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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Long Term Care Quotes – Do I Need Long Term Care?

 

 

Sadly, only a few people plan early for retirement. Some don’t even realize how important long term care planning is to retirement. What is long term care and do you need insurance to cover its services?

 

Long term care refers to services offered to elderly and disabled individuals. Long term care services include personal care assistance, housekeeping, medical and skilled nursing activities. With the high cost of care, it is important to prepare for the possible cost of these long term care services. Long term care insurance can help. You can even start at this moment and save money for long term care.

 

What Statistics Say About Long Term Care

 

Studies show that people are living longer and needing more and more assistance. Statistics also reveal that 70 percent of people age 65 and above will need some form of long term care assistance during their lifetime.

 

It is important to know that although the government can help, people should not solely to what the government can do. The administration is even encouraging people to buy long term care insurance. The most effective way to ensure your future is to study long term care insurance and compare rates. Having long-term care insurance gives you control over your finances in case you need it in the future.

 

What Is Long Term Care Quotes and How Can It Help You?

The insurance industry is a competitive world. Today, there are several insurance companies fighting for clients to sign up for their products. Some even revamp their marketing strategies to boost sales. One of their strategies is to improve their online campaign by installing a computation tool on their official website that will allow consumers to get an estimate amount of long term care insurance.

The long term care quotes estimator will ask several questions like your age, your marital status, your state of residence and your long term care preference. These are asked because these pieces of information will determine the cost of insurance. That is why it is important that you accurately answer the form so that you will receive precise estimation as well.

 

Moreover, the website will ask if they can call you and when is the best time for you to answer their call. They call not to force you to buy their products but to find out more about yourself. Like most insurance, they are interested to know about your health and family medical background. This will determine your risks of needing long term care.

 

The long term care insurance agent can also discuss with you about the different features that you can include in your plan like the inflation protection rider. This rider will protect your long term care plan against the increasing cost of care.

 

With so many long term care insurance companies today, it is important to find the right one that will offer you the best insurance products. Start looking for the best LTCi plans by requesting for a free long term care quote online.