What is Long Term Health Care and is Long Term Health Care Insurance Right for You?    

Many think if they require long term health care, the insurance they already have will then pay for it. The truth is, the vast majority of insurance plans do not offer benefits for long term care in the home, or in a care facility. If you’ve got a medical condition, like insulin-dependent diabetes or heart disease, that makes it a lot more likely that you’ll need long term carem and it may be a good idea to explore ways of paying for care.

If you are thinking about getting long term health care insurance, there are many places to look. You can get in contact with an insurance agent, who will propose particular policies. You could go to insurance agencies in person and request information and receive LTC quotes. A different way is to purchase long term care insurance from your job or a different group, like the AARP. No matter which approach you select, conducting a little research (like reading the guide “Insiders Secrets”) can make certain that you are receiving the coverage you require from a quality insurance company.

Long term care is often stressful. Moving from a home for an assisted-living facility or a nursing home is especially hard. That’s the reason more are in the market for home health care. There are many services now available to help the people that wish to remain living in their homes. For those that only need a bit of assistance, there are grocery and meal delivery as well as chore services available. Individuals that would require more care can find more qualified home nursing, often even 24 hours a day, seven days a week. All of this insures that you will get the health care you need to have in a more relaxed and comfortable setting.

LTC insurance commonly includes some unusual benefits that you might wish to utilize.  (If you’ve read the guide and watched the videos then you probably already know this, eh?)   When your insurance policy offers coverage for health care from an aquaintence or a member of the family, it could also have respite care. That means that if your caregiver should need a break, you’ll receive short term care. Other health insurance plans will let you invest your insurance benefits on modifications and changes to your house so that it is more livable. With the approval of a physician, you can make your home accessible for a wheelchair, or you might want to remodel particular areas in the house so that they are more comfortable. When considering a LTC plan, make sure you know the type of benefits you would be offered.

When purchasing a long term care insurance policy, you’ll want all of the information you can get. An insurance advocacy group might be able to prepare counseling about it. This can be a great way to find out about agencies near you. The web is another good resource. You could check out insurance company websites and get a primary long term care insurance rate or ask for information. A financial advisor or insurance agency could also be of assistance, however not everyone will specialize in LTC insurance. Regardless, doing some research can assure that you’ll be happy with both your insurance policy and your insurance company.

 

Dealing with the potential cost of long term care is a real one, and for one already on a shoe string budget, perhaps not the kind of thing that is considered to be a necessity. With the growing cost of nursing home care and that of home care, it’s little wonder that these thoughts of the future put a strain on those who are faced with these questions. After all, insurance plans, including Medicare pay only a minimal amount for these services, and the difference can really cause a strain on the family budget, especially if the one in long-term care is the primary source of income.

The best way to handle the potential for purchasing long term care insurance is to understand the inside/out details of how long term care insurance really works.  Too many people think it’s about the bottom line quote when that is not where the devil is hiding the details.  (If you’ve read the guide then you’ll know where the devil is … if not, consider getting your hands on the only guide written by an ex-agent and former long term care insurance specialist.)

Nocita Carter asked:  Should I get long term care insurance?

Yes, you may want to consider a long term care insurance plan if you don’t want to drain your retirement savings and other investments in the future! It is currently estimated that nursing home costs are more than $10,000 per month. Imagine, how much this will cost you on an annual basis if you had to pay this money out of your pocket if you needed care from a nursing home! This would be financially devastating without long term care insurance. (To learn the inside secrets and what agents & companies will not tell you read the guide.)

Did you know that prior to the passage of the Deficit Reduction Act of 2005, most Americans were able to count on Medicaid to assist them with long term health care. The Deficit Reduction Act changes all of that. This new law places the majority of long term health care costs on you, especially if you have assets. Unfortunately, middle class Americans will be hit the hardest with this new law.

How does the Deficit Reduction Act affect me if I need nursing home care and have assets? Well, for the most part, you will need to exhaust your assets before you will be eligible for Medicaid. Under this new law, there is a five year look back period from the date that you apply for your Medicaid benefits. This five year look back period, is to ensure that you have not transferred assets to relatives, friends, or other individuals. If you have transferred your assets to someone, Medicaid will count this against you and you will have a period of penalty wherein you will not qualify for benefits. Basically, this means that you could be out of money and Medicaid will not pay for your nursing home care!

The other side of this new law is that even if you have not transferred your assets to someone, you cannot have more than $500,00 in home equity. The majority of your assets including trusts and annuities are viewed differently under this new law.

It is important, that you consider long term care insurance as part of your retirement planning. With passage of the Deficit Reduction Act of 2005, it is a must! Unless you are independently wealthy and don’t mind coming out of your pocket with more than $10,000 per month for your prospective nursing home care! For the average person, this would be a severe financial hardship.

The best advice is to be pre-warned is to be pre-armed.  Learn about LTC insurance by reading “Inside Secrets”.  The only consumer buying guide (and videos) written by an ex-agent.

Long-term Care was introduced during the 1970s as a specialized form of nursing home insurance.   Since then long term care insurance has since been expanded to cover a more diverse range of services and caters to people of any age. The large majority of people requiring long-term care are still over the age of 65 years but more and more younger people have realized the necessity to have extended health insurance. For many of the elderly, this required care is usually ongoing but long-term care insurance can also apply too much shorter-term situations such as the care needed after an accident or certain types of surgery.

The purpose of Long-term care insurance is not to meet medical bills. That is the domain of mainstream health insurance providers or Medicare. LTC Insurance is expressly designed to meet the extra costs to enable you to live in your own home and continue with daily activities in a way that gives the client independence and control of their care.

Many people balk at the need for buying Long-term care insurance as they mistake it for nursing home insurance and don’t realize the care can be provided for them in their own homes. Home care from skilled nurses can be an uncomfortable subject for a number of people. However people are living longer because of modern medicines and different types of lifestyles to the previous generations, the number of people over the age of 65 is likely to double by the year 2050, a consequence of extended life expectancy is the older a person gets the more likely they will suffer from chronic illnesses such as strokes or Alzheimer’s. In America it is estimated that there is a 40 percent risk for those over the age of 65 having to enter a nursing home for long-term care.

There are many misconceptions that mainstream healthcare such as Medicare will cover the costs of long-term care. The simple fact is that Medicare will pay for short-term periods of care in the home or a very limited stay in a care provider’s facility, but only after strict criteria has been meet. Medicare can pay for long term care but usually only after most financial assets of the client have been used up.

There are important issues to consider when looking at when you should get LTC insurance. The younger you are the less you premiums will cost you. Now the longer you go without a claim the more coverage your policy will provide for you, this helps to offset that nursing care in the home costs have been increasing a lot faster than the rate of inflation.

If you have a pre existing serious health condition chances are high that you will not be accepted by Long-term insurance carriers. It is therefore prudent to make inquiries before these conditions occur rather than try to after. When looking for LTC insurance a Comprehensive Policy is the best option as this will cover not only the costs of a nursing care facility but those associated with home health care as well.  (This may or may not be the case for you; if you’ve read the guide then you’ll know why.)  When looking at Home care you need to be aware that most providers standard polices only allow for coverage of up to four hours a day, if you think you may need coverage the policy premiums can increase dramatically.  (Check the guide for more details on how home care really works).

Just like making a home from stack of cards is not easy, similarly living your childs dream is not easy.  It takes lot of effort, well planned thinking and discipline to plan for your childs future.  

Trap #5: Not getting a policy that is inflation-proof

If you’ve read the guide then you know how critical this is and how to structure a plan so you save thousands over the life of your policy.  (If not, read the guide).  

This may be your most important consideration since inflation grows expenses. Inflation is something we can count on, so we need to be adequately prepared for it, especially as we look down a road that could stretch for 20 years or more.

It is important to know if your policy gives you the right to add coverage at a later date, or if your coverage increases automatically.

Trap #6: Not being able to back out of a policy

Will you be able to review and get your money back in the first 30 days of purchase?

You should be able to back out it you change your mind or discover the policy is not in your best interest. Not only should your policy give you a way out if you are displeased, but you also want to receive a refund.  (If you’ve read the guide then you’ll know if the policy is really for you because until you get the actual contract you will not know if the policy is right for you or even benefits you.  This is on page 63 of the guide).

Trap #7: Not being able to keep a policy indefinitely

Can you keep your policy as long as you pay the premiums, or will the company be able to drop you?

Does your policy also include a non-forfeiture benefit which will continue to pay for your care even if you stop paying the premiums? That feature in not totally necessary and can increase your premiums costs, but it is still important to keep in mind.    As a side-note, be very careful of riders because they tend to favor the insurance companies.  Always weigh the financial gain vs. loss before purchasing riders as agents make a lot of money off of them.

Your chances of living longer have greatly increased. With that blessing comes new challenges such as how you will live and if you will be able to stay in your own home. 

Long term care insurance, which aids you in caring for yourself during your old age, could be the most important decision you will make for the rest of your life.

Because of the complications in buying long term care insurance you need to be wary of the 7 most deadly traps that could rob you of your independence.

Trap #1: Not checking out the background of your insurance agent; this is critical.

This is not car insurance or a homeowner policy that can be switched from company to company. You will be making a long investment in your future and you don’t want to waste money and time.

Just because you have an agent you like who handles your car insurance doesn’t mean he or she will be able to guide you through this complicated maze of potential policies. Getting the right agent who knows what he is doing and is honest is absolutely vital.

Only deal with those agents who have clean records. The best way to research them is with your state insurance regulator. You can also check with the American Association for Long-Term Care Insurance (aaltci.org)

You might also want to consider reading “Insider’s Secrets” consumer buying guide and watching the accompanying videos.  Written by an ex-agent it teaches you as much or more than most agents even know.  This is a quick way to put yourself in the drivers seat.  (Learn more about the guide.) 

Trap #2: Not researching the insurance company thoroughly

You want to make certain the insurance company has a low complaint ratio, and does not have a history of increasing the premiums on “classes” or “groups” of policyholders instead of individuals.

Verify the financial strength of the long term insurer. That’s important since you will be keeping this policy for many years. You don’t want to be faced with fickle finances later as your insurance company scrambles to raise premiums in order to stay in business.

Trap #3: Not Buying a Tax Qualified Policy

This is very important because you do not want your benefits considered to be income.

You also want to make sure you can deduct some or all of your benefits from your taxes. This is an important detail that can save you a lot of grief later.

Trap #4: Not knowing exactly what your coverage includes

Will your policy care for all of your needs, or just some of them? Do you know which ones, or are they hidden in the fine print?

For example, is it a nursing home only policy or will it cover your in-home care expenses such as daily living aids? Will you be able to stay in your own home because your policy pays people to help you with your meals, bathing, or other needs?

In the next post we’ll look at the last 3 tips to avoiding traps in buying long term health care insurance.

In your twenties, thirties or forties and healthy? Now is the time to consider long term care insurance while you can qualify for preferred rates, which is a code word for substantial discounts, due to both your age and your perfect health….but be sure you understand what you are getting.

Long term care insurance is just not for the old or infirm.  Long term care is not a place but a health event that effects you over time.  How many persons do you read about that have been injured in car or sporting accidents?  Remember that terrible accident Chris Reeves (Superman) had jumping his horse?  Or how about a neighbor kid or local teen who was injured at the local swimming hole or in a car or skiing accident.   Who takes care of these young people when they are seriously injured and require days, months or years of care? In many cases their parents or family members are seriously affected financially and personally in order to care for them.

Now comes into play the benefits of long term care insurance for younger adults. If an adult has long term care insurance, this insurance will pay for and provide required care for days, months or years. And in some cases, depending on the company, the monies available for an injury due to an accident are double the normal cost of available care.  It would be nice if you could get one plan; the Life/Health/Accident/LTC insurance plan but companies make more money by splitting all this up.

Many younger individuals taking out a long term care insurance policy also purchase an addition to their insurance called restoration of benefits. For example if an individual is in a serious accident, requires care for a period of time and then fully recovers, the entire policy benefit is reinstated once so that it can be used again when the individual is older and requires care. It is a win — win situation providing the best possible solution.

The average age most people begin to consider long term care insurance is in their fifties. The difference in premium between a twenty something and a fifty something can be significant. I often hear concern that a person will be paying premiums for the rest of their life or until they need the insurance. Consider an annual premium of $600 for 60 years versus an annual premium of $2500 for 30 years. Who pays less in total premium? Compare $36,000 versus $75,000. In either case the premium will be recovered in one year or less of care, assuming the policy was purchased with inflation protection. (To learn more about the inside secrets and tips to saving even more be sure to check out the guide - a “tell-all” consumer buying guide written by an ex-agent).

And while you are considering long term care insurance. Talk to your parents. If they have not prepared financially for health care or long term care guess who will be expected to help out? It is the reverse of your parents helping you with a health care accident when you are young. Paying for care for parents is the number one cause of financial distress for children. This expense affects employment, marriages and long term retirement prospects. If your parents cannot afford their long term care insurance premium, consider splitting the premium or paying for it entirely. This will give you peace of mind that your years of hard earned money will not disappear in the blink of an eye when your parents need care.  Make sure if you’re the sandwich generation that no one is taking a bit out of you!

Each day you move out of your office with dreams of a secured and happy life for your family. Each year you celebrate the golden days with your family by your side. Maybe, it’s the time to do some more for your family. Maybe its time to choose a solid base for your family. Maybe it’s the correct time to choose an Insurance Policy for your family…biut what kind?

An Endowment Plan allows you to secure your long-term financial goals. It gives valuable protection to your family by way of lump sum payment in case of your unfortunate demise withinthe  policy term. Many endowment plans provide for flexible benefit options and payment options to pay the premiums and to take the generated profits from time to time.

In this policy the sum assured is given on survival upto the maturity date. However, in case of your death during the policy term, this policy gives your family the sum assured together with the attached bonuses you had chosen. With reversionary bonuses, generally paid annually, this policy becomes more beneficial for your family.

To choose the Endowment Insurance Plan, you need to choose the targeted savings and policy term, choose one or two from the additional benefits provided by the insurance company and then work out on the premium payable and sum assured.

You can choose an Endowment plan from any of the well known life insurance providers like ICICI Prudential, HDFC Standard, AEGON Religare and so on.. After carefully working out on the above mentioned plans, you should decide upon the policy. Once taken keep a track of the premiums you have paid (of course insurance companies do provide premiums paid slip), to keep a track of the amount of paid. This also gives the insurance company a fair idea about how particular you are about your policy. Good for long term relation with the company…

There are so many types of insurance that it’s really hard to understand which ones you need for you and your family.  If you’re married and retired this is the time to consider long term health care insurance.  LTCi protects against the financial expenses associated wtih any long term illness.  As we have an aging society this is becoming more and more important.  You can learn the inside secrets to long term care insurance by reading the consumer guide written by an ex-agent and long term care insurance specialist.