Tag Archive | LTCI

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……..


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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Advantages of Buying Long Term Care Insurance

If someday you happen to need assistance and care support, and you don’t have enough money to afford long term care anymore, what are the possible options that you can do? Ask help from your family? Rely on your friends? What if they don’t have the capacity to help you anymore? Buying long term care insurance is a sure way to avoid these kinds of problems.


Getting your own long term care insurance, or even for a family member, will help you tons in saving up and in making sure that you get the help you need on time and when you need it the most. Long term care insurance makes it easier for you to find the care that you need and that you will have access to care faster, especially when you really need it.


Most people who get long term care insurance want to have the quick access the moment they need the help and long term care. People get long term care insurance early in the hopes of using the service that would help them and having the insurance cover up the costs that it will bring to them, relieving them the duty of finding the high amount of money needed in paying for long term care at the time when they need it already.


A large number of people underestimate the expenses that they will use for long term care when they grow older or when the time comes that they need it. They think that they can rely solely on the health insurance that they have secured for a long time, since it covers most of the expenses brought by health-related situations. What they do not know is that the health insurance that they have doesn’t necessarily cover every service that they need and every cost that they have to pay such as the long term care.


Moreover, if the health insurance covers even some of the expenditure that they will have regarding the long term care, they would probably be brought to places they do not actually prefer or they would be given alternative services that they don’t necessarily need, which sometimes makes their expenses go even higher. You will not be able to choose which services you want or where to receive the long term care or even the quality of the care you get.


It is more beneficial to invest in long term care insurance since you will most probably need it in the future. In relation to this, the insurance company will cover the expenses you will acquire in the long term care so you could shoulder the costs of the additional payments or services and other charges, if there is any. You could also think about the other expenses that you will have to keep in mind since long term care is not the only thing that you will be paying for in the future. You could mind your other needs and priorities as well. Buying long term care insurance will help you avoid the troubles you could come across when you need and use the long term care in the future.



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.








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.

Finding the Best Long Term Care Insurance


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.






Help! My LTC Insurance Premium Is Going Up



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.